Georgia’s main energy sector challenge is seasonality, with electricity surpluses in summer and shortages in winter, according to Mariam Chakhvashvili, Head of Research at Galt & Taggart. She said Turkey’s market can no longer be expected to provide the same high export tariffs as before.
Electricity generation in Georgia fell by 16.3% year-on-year in June 2026, as reduced export opportunities forced the system to limit production. Chakhvashvili said the main factor was Turkey’s changed market conditions, including lower electricity prices and a temporary halt in imports from Georgia due to increased domestic generation.
The restrictions mainly affected run-of-river hydropower plants, where generation declined by around 30-35%. According to Chakhvashvili, this increases risks for investors without state support mechanisms.
Although exports resumed in July as prices in Turkey improved, she said Georgia needs to diversify export markets and develop projects such as the Black Sea submarine cable to access European markets.
Chakhvashvili also highlighted the need for reservoir-based hydropower plants and energy storage systems to manage seasonal and daily imbalances. In June, Georgia’s electricity exports fell by 84.3% year-on-year, mainly due to surplus generation in Turkey.
