GREDA Executive Director Maia Melikidze said Georgia will likely need a third CFD auction for renewable energy projects, arguing that the current 6.5-cent tariff no longer supports investment in hydropower.
Melikidze said inflation and rising construction material costs have significantly extended project payback periods. Investments previously expected to be recovered within 7-12 years may now take more than 15 years.
She estimated that the tariff in a third CFD auction could need to rise to around 9 cents per kilowatt-hour, or potentially higher, depending on current cost increases.
Melikidze said GREDA is conducting its own research, but noted that construction costs have risen by roughly 15-20% and, in some cases, as much as 30%, making a new auction increasingly necessary.
