Georgia has major renewable resources and a power system still anchored in hydropower. But as the country seeks to add more wind and solar capacity, the practical challenge is no longer simply setting targets.

It is whether energy and climate plans, transmission investment, storage, market arrangements and project development all point in the same direction.

In written responses to renewables.GE, the International Renewable Energy Agency (IRENA) says Georgia can build a more diversified and resilient renewable-energy system. However, it argues that strategic ambition must be translated into a clear, integrated pathway that gives developers, lenders, grid operators and public institutions confidence about what needs to happen next.

One investment signal, not competing roadmaps

Georgia’s Nationally Determined Contribution (NDC), National Energy and Climate Plan (NECP) and Long-Term Low-Emission Development Strategy (LT-LEDS) all set out parts of the country’s energy-transition direction. Yet IRENA’s analysis identifies differences in their emissions trajectories, underlying baselines and renewable-capacity projections.

renewables.GE: From a renewable-energy and investment perspective, which of these inconsistencies matter most?

IRENA: A central issue is that Georgia’s key planning documents can point to different transition pathways. In particular, the NECP and LT-LEDS envisage different future technology mixes, with the NECP relying more heavily on solar and wind and the LT-LEDS maintaining a stronger role for hydropower.

For investors, the most important implication is not simply whether one target differs from another, but whether the NDC, NECP and LT-LEDS provide a consistent picture of future electricity demand, renewable capacity, grid investment and the role of flexibility.

Different assumptions about the future contribution of hydropower, wind and solar can affect decisions on generation projects, transmission infrastructure, storage and financing.

Greater alignment would help translate Georgia’s long-term climate ambition into a more coherent implementation pathway. That would give developers, lenders, grid operators and public institutions clearer signals on where investment is needed and on the policy and infrastructure conditions required to deliver projects at scale.

Hydropower’s role in a more diverse system

Georgia’s electricity system is already heavily dependent on hydropower. For IRENA, the task is not to replace it, but to build a portfolio in which hydropower, solar PV and wind work together.

renewables.GE: How does IRENA see the role of solar, wind and hydropower evolving in Georgia’s future electricity mix?

IRENA: Hydropower will remain central to Georgia’s power system, providing substantial domestic renewable generation and, where reservoir capacity is available, valuable operational flexibility.

At the same time, Georgia’s reliance on hydropower exposes the system to seasonal and hydrological variability. Expanding solar and wind can help diversify the generation profile, strengthen domestic supply across the year and reduce exposure to dry periods, thermal-generation needs and costly electricity imports.

The objective is therefore not to replace hydropower, but to complement it with other renewable resources and a stronger, more resilient power system.

This creates a significant opportunity for investment in solar and wind, particularly when paired with transmission upgrades, improved forecasting, flexible system operation and storage. The key challenge is that variable renewable deployment must proceed hand-in-hand with grid capacity and system flexibility.

Grid and flexibility are part of project delivery

For IRENA, transmission, storage and operational tools are not secondary additions to renewable generation. They determine whether projects can connect, operate reliably and avoid curtailment.

renewables.GE: What role will grid expansion, storage and emerging technologies play in enabling higher shares of renewable energy in Georgia?

IRENA: Transmission expansion, system flexibility and storage will be essential to integrating higher shares of renewable electricity in Georgia. They will enable renewable projects to connect, reduce curtailment, maintain reliability and make better use of resources located away from demand centres.

In the near term, stronger transmission networks, improved dispatch and renewable forecasting, battery energy storage, demand-side flexibility and pumped-hydro storage are likely to play the most immediate role. These options can help manage short-term variations in wind and solar output while supporting a secure and efficient power system.

Over the longer term, green hydrogen could have a role where it supports industrial decarbonisation, sector coupling or longer-duration energy storage. Its role in the power system, however, will depend on future costs, infrastructure, market design and the availability of lower-cost flexibility options.

For the immediate integration of more wind and solar, IRENA sees grid investment, operational improvements and proven flexibility solutions as the most practical priorities.

Predictable rules make projects bankable

Renewable-energy targets become investable only when developers can see a credible path from a project concept to grid connection, revenue certainty and construction.

renewables.GE: Which areas of Georgia’s policy and planning framework offer the greatest opportunity to strengthen investor confidence?

IRENA: Investor confidence depends on a clear and credible pathway from national targets to implementable projects.

The greatest opportunities lie in strengthening policy consistency across the NDC, NECP and LT-LEDS; providing predictable procurement and market arrangements; and ensuring that grid and permitting processes can support the planned pace of renewable deployment.

In practical terms, this means transparent and regular competitive procurement where appropriate, aligning power-purchase and Contract-for-Difference agreements with international standards to support project bankability, having clear connection and curtailment rules, and taking timely decisions on transmission expansion.

Targeted de-risking instruments and dedicated financing facilities can also help mobilise private capital. The key is a stable framework that reduces uncertainty across the full project cycle—from permitting and grid access to offtake, financing and operation.

The Black Sea corridor still needs domestic preparation

Regional electricity connections could create additional markets and balancing options for Georgia’s renewable generation. But IRENA stresses that external connectivity cannot substitute for domestic grid, market and project readiness.

renewables.GE: How could regional projects such as the Black Sea energy corridor affect domestic renewable deployment, and what should Georgia prioritise to 2030?

IRENA: Regional interconnection projects could strengthen the business case for domestic renewable deployment by improving access to regional balancing resources, supporting cross-border electricity trade and providing access to additional markets for renewable power.

Better regional connectivity could also help manage variability, reduce curtailment and enable Georgia to make better use of seasonal renewable surpluses, including hydropower. The Black Sea energy corridor could therefore support Georgia’s role as a regional green-energy partner.

However, its benefits for domestic renewable deployment will depend on parallel progress inside the country. Generation capacity alone will not be sufficient without grid readiness, transparent market arrangements and a credible pipeline of bankable projects.

Looking to 2030, IRENA’s priorities are to consolidate national energy and climate planning; accelerate diversified renewable deployment through transparent procurement and permitting; upgrade transmission and flexibility resources; strengthen project bankability through predictable market rules and de-risking tools; and build the institutional capacity and local skills needed to turn plans into projects.

Source note: This article is based on written responses provided to renewables.GE by the International Renewable Energy Agency (IRENA).