Generation restrictions caused by excess electricity supply this summer, combined with falling electricity prices on the Turkish market, may have caused the Georgian energy sector losses of up to GEL 100 million, according to energy expert Davit Mirtskhulava.
Mirtskhulava said one newly built hydropower plant with a capacity of around 7 MW suffered approximately $470,000 in losses during the summer. He warned that such losses can make it difficult for developers to service bank loans and could lead financial institutions to become more cautious about financing future energy projects.
He believes the government should consider reducing or eliminating certain taxes during periods of oversupply and low regional electricity prices, allowing generators to export electricity at lower prices and limiting financial damage to developers.
Mirtskhulava also stressed the need to develop large reservoir-based hydropower plants, including Khudoni, Namakhvani and Nenskra, to strengthen Georgia’s energy system. He added that integrating solar and wind generation will require flexible generation capacity and battery storage systems.
