Renewable energy

Implementation indicators

 

 

  • National Renewable Energy Action Plan

    National Renewable Energy Action Plan

    Due to its late accession to the Energy Community, Georgia adopted the NREAP only at the end of 2019. The document contains a set of measures to promote renewable energy. However, there is no obligatory 2020 target.

  • Quality of the support schemes

    Quality of the support schemes

    For years, hydropower was promoted through guaranteed power purchase agreements (PPAs). In July 2020, the Government of Georgia adopted a secondary act introducing a feed-in premium (FiP) for hydropower plants with installed capacity higher than 5 MW. A support scheme for other renewables technologies is not yet in place.

  • Integration to the grids

    Integration to the grids

    The newly adopted Law on Promoting the Production and Use of Energy from Renewable Sources envisages guaranteed and priority access to renewable energy producers, which is still to be implemented through regulations. Current hydro producers supported with feed-in tariffs under a PPA are exempted from balancing responsibility, which is not in line with the State Aid Guidelines.

  • Administrative procedures

    Administrative procedures

    Licensing and permitting procedures need to be simplified and streamlined. There is no single administrative body established. An electronic system for issuing, transfer and cancellation of guarantees of origin is not yet in place.

  • Renewable energy in transport

    Renewable energy in transport

    Provisions related to the sustainability of biofuels are still not transposed and the legal framework remains completely
    non-compliant with Directive 2009/28/EC.

State of compliance

In December 2019, Georgia adopted the Law on Promoting the Production and Use of Energy from Renewable Sources aiming to transpose the renewables acquis. The Law sets the basis for adoption of 2030 targets, introduction of a market-based support scheme for renewable energy as well as implementation of other articles from Directive 2009/28/EC. The Law prescribes adoption of several acts, some of which were adopted in 2020, including a Rule for accounting the energy received from thermal pumps, Rule on developing minimum requirements for the template for national renewable energy action plans and Rule for normalization of accounting for electricity generated from hydro energy and wind energy.

In July 2020, the Georgian Government adopted an act setting a feed-in premium (FiP) at up to 1,5 USc/kWh for hydropower plants with installed capacity higher than 5 MW. According to the act, producers are obliged to sell electricity at the market and they are entitled to receive a FiP if the market price is less than 5,5 USc/kWh. In such a case, the amount of the FiP is the difference between 5,5 USc/kWh and the market price but no more than 1,5 USc/kWh. An EU4Energy Governance project is developing a template for a contractual agreement for this mechanism.

The net-metering system for self-consumption is implemented in Georgia since 2016. In summer 2020, the installation limit was increased from 100 kW to 500 kW. The scheme is technology neutral, but most of the existing plants are solar PV. Georgia should proceed with adoption of secondary legislation and implementation in line with the 2019 Law and Energy Community law.