Foreign direct investment in Georgia’s energy sector fell sharply in the first half of 2026, according to Geostat. The sector attracted just $9.3 million in FDI in the second quarter, down by 83.1% year-on-year, while H1 investment totaled $41.2 million, a 66.9% annual decline.
Maia Melikidze, executive director of the Renewable Energy Development Association (GREDA), attributed the decline primarily to a worsening investment climate. She highlighted generation restrictions imposed on energy facilities during May, June and part of July, which caused significant financial losses for private companies, particularly hydropower producers.
Melikidze also pointed to prolonged bureaucracy and delays in signing memorandums with investors. She said companies have been waiting for months, while the business sector is seeking a faster process. She warned that repeated generation restrictions next year could further undermine investor confidence and create concerns about the ability to recover investments.
According to GREDA, the private sector’s losses have reached several tens of millions of lari. Melikidze said Georgia should develop a clear policy for energy storage systems, support and diversify electricity export markets, and establish a clear position on the energy exchange to improve the sector’s investment environment.
