Generation restrictions imposed during the summer amid excess electricity supply and demand have caused significant financial losses for private hydropower plants, according to Maia Melikidze, head of the Renewable Energy Development Association.
Melikidze said revenues at many hydropower plants fell by as much as 60%, compared with declines of around 15–20% in previous years. She argued that starting in 2027, the burden of generation restrictions should be distributed between private and state-owned hydropower plants rather than falling almost entirely on private operators.
The association is calculating the exact financial and electricity-generation losses and plans to present the data to the relevant authorities. Melikidze also proposed diversifying electricity export markets, accelerating the Black Sea submarine cable and Green Energy Corridor projects, and exploring electricity storage through batteries.
Energy expert Davit Mirtskhulava estimates that the sector’s total losses from summer generation restrictions reached around GEL 100 million. Galt & Taggart estimates that restrictions amounted to about 5% in May-July, while without electricity barter with Turkey, the figure could have reached 10–15%.
