The Georgian government has approved amendments to the renewable energy support scheme, allowing investors to merge two or more hydropower plant (HPP) projects planned in adjacent areas into a single project. The changes were introduced by a government decree dated November 10, 2026.
Under the new rules, the merged project will receive the lowest tariff previously established for the individual projects, without applying the standard tariff reduction rule. Tariff adjustments will only be triggered if the difference between the average annual electricity generation estimates in the preliminary and full feasibility studies exceeds a specified threshold.
The government will also retain the authority to extend project deadlines by up to three years. Extensions may be granted in cases where obligations cannot be fulfilled due to circumstances beyond the investor’s control, including grid connection limitations, force majeure events or other objective obstacles.
The amendments also clarify electricity market arrangements until the new target market model becomes fully operational. Electricity generated by plants participating in the support scheme will be classified as balancing electricity and regulated under the existing 2006 market rules. Under the Contract for Difference (CfD) mechanism, if the balancing electricity price falls below the agreed tariff, the Electricity System Commercial Operator (ESCO) will compensate the investor for the difference. If the market price exceeds the tariff, the investor will return the difference to ESCO.
