Georgia’s electricity market opening and planned reforms do not adequately address the sector’s existing challenges, Giorgi Margbadze, head of the Small and Medium Hydropower Association, told BMG. He said market liberalization is unrealistic amid the sector’s financial and infrastructure difficulties.
Margbadze said day-ahead market trading creates additional risks for small and medium hydropower plants, as weather uncertainty makes accurate generation forecasts difficult. Producers could face imbalance penalties if actual generation differs from the amount declared in advance.
He also warned that opening the market could lead to higher electricity tariffs during winter, potentially increasing costs for households and businesses. According to Margbadze, the government should prioritize energy sector support, review guaranteed purchase tariffs and develop local hydropower resources before fully opening the market.
Georgia’s energy exchange began operating under a transitional electricity market model on July 1, 2024, as part of the country’s planned market liberalization and EU harmonization commitments. The government has decided to suspend day-ahead market operations from October 1, 2026, until July 1, 2027, after which the exchange operator is expected to resume the service.
