Energy expert Davit Mirtskhulava says the 6.5-cent tariff set under the CFD support scheme is insufficient for run-of-river hydropower projects due to rising construction and equipment costs.
According to Mirtskhulava, developers are often forced to reduce budgets to minimum levels, which can affect project reliability. He stressed that energy infrastructure requires high standards and that compromises on quality are unacceptable.
He said the government is considering adjustments to the support mechanism, including extending the guaranteed purchase period from eight to ten months and increasing tariffs for run-of-river hydropower plants during periods when electricity purchases are guaranteed. Additional support may also be introduced for small reservoir-based plants capable of short-term regulation.
Since September 2024, investors have been able to receive fixed tariffs through CFD agreements without auctions if projects meet technical and economic criteria. Current fixed tariffs are 6.5 cents per kWh for hydropower, 6 cents for wind power, and 5.6 cents for solar projects for a 15-year period.
