Georgia’s energy sector has suffered losses of up to GEL 100 million this year due to forced generation cuts and water spills, according to energy expert Davit Mirtskhulava. He said low domestic demand and abundant water resources in May and June forced nearly half of the country’s power plants to reduce output.
Mirtskhulava explained that Georgia’s installed generation capacity far exceeded domestic consumption during the period, while limited export opportunities led to restrictions affecting hydropower, wind, and solar plants. He warned that developers and banks are already revising financial models to account for higher curtailment risks.
He also pointed to Turkey’s rapidly expanding renewable energy sector, which has lowered electricity prices and reduced demand for Georgian power exports. Similar market conditions in neighboring countries have further limited Georgia’s export opportunities.
Mirtskhulava called for temporary measures to support electricity exports, including suspending transmission and dispatch fees during periods of oversupply. According to Galt & Taggart, Georgia’s electricity exports fell by 84.3% year-on-year in June 2026, largely because Turkey reduced electricity imports due to excess domestic generation.
