The cost of building energy infrastructure in Georgia has increased by around 30% over the past three years, creating significant challenges for developers, according to Giorgi Mirtskhulava, Managing Director of energy construction company Bemoni.
Speaking to BMG, Mirtskhulava said rising prices for construction materials, transportation, and labor have sharply increased the cost of developing power projects. He noted that building 1 MW of hydropower capacity, which previously cost $1.2–1.5 million, can now require $2–2.5 million, while wages for low-skilled workers have nearly doubled.
Mirtskhulava warned that many developers are now facing financial pressure because project economics calculated several years ago no longer reflect current market conditions. He added that existing agreements with the government do not account for the higher construction costs, making it more difficult for investors to complete projects.
According to the executive, the cost increases could slow the development of new renewable energy facilities, potentially affecting Georgia's efforts to strengthen its energy security, reduce electricity imports, and achieve greater energy independence.
