Renewable Energy Development Association executive director Maia Melikidze says private energy companies have suffered losses of tens of millions of lari due to generation restrictions and what she described as unequal treatment by the state. She said private plants were curtailed while state-owned facilities continued generating electricity.
According to Melikidze, the restrictions during May, June and July reduced private companies’ revenues and created difficulties in meeting bank obligations. She said losses have reached several tens of millions of lari and warned that the problem could put the sector under greater pressure in 2027 if unresolved.
Melikidze said the unequal treatment has also raised concerns among investors and could negatively affect future FDI in the energy sector. Companies that had previously prepared for 20-30% revenue reductions were hit harder this year, creating additional financial pressure.
She also said private companies have been waiting for several months for energy project memorandums to be signed. Although projects have reportedly been reviewed and are ready for the next stage, delays in signing the agreements have increased frustration, as memorandums are necessary for developers to move forward with construction.
