The Government of Georgia has announced significant savings in state-owned energy companies, with more than GEL 371 million optimized through staff reductions and reduced operational expenses. Prime Minister Irakli Kobakhidze highlighted the results of the process at a government session, emphasizing that these funds will be redirected into the energy sector.
According to Economy Minister Mariam Kvrivishvili, the optimization process of state enterprises is ongoing, and a new sectoral vision will be presented in the near future. She also assured representatives of the energy industry that the hundreds of millions saved would be reinvested in energy development projects, particularly those aimed at strengthening the country’s long-term energy independence.
Representatives of the private sector note that the ministry’s new team considers it necessary to channel these funds toward the construction of large regulatory hydropower plants – projects that have stalled for years.
After the cabinet meeting, Maia Melikidze, Executive Director of the Renewable Energy Development Association, underlined that if private investors fail to appear soon, the state itself will most likely step in to build these strategic facilities.
“The Minister emphasized that significant savings were achieved thanks to the new team’s approach, which avoided unnecessary spending and redirected resources. It would be wise to use these funds to build large hydropower plants rather than continue ineffective practices,” Melikidze said.
She stressed that Georgia urgently needs to address its energy dependence. “For the first time this year, in August, Georgia became an import-dependent country. This import reliance means a serious outflow of money in foreign currency. If this trend continues, it will make the country poorer in the long term. Therefore, if investors do not step forward within one or two months, the government will most likely have to build these plants directly from the state budget, using taxpayers’ money,” Melikidze added.
The construction of large hydropower plants has long been a priority in Georgia’s energy strategy, but many projects have faced delays due to financing challenges, investor hesitations, and public debates. Industry experts argue that without major new energy infrastructure, the country risks greater dependency on imports and reduced economic security.
