Georgia’s domestic electricity generation fell sharply in May 2026 as weaker hydrological conditions coincided with restrictions on renewable power plants during periods of excess supply.

Market reporting based on Galt & Taggart data put May generation at approximately 1.19 TWh, around 9-10% lower than a year earlier. Hydropower output, which accounts for most spring generation, also declined.

The fall was not caused by hydrology alone. Georgian State Electrosystem limited production at some renewable plants to maintain system stability when supply exceeded domestic demand and export opportunities were insufficient.

Electricity exports to Turkey dropped to their lowest level in a decade, according to Georgian business media. Other market data put total May exports at about 54 GWh, with a value of approximately USD 2.2 million.

The combination illustrates a structural feature of Georgia’s power system: the country can have surplus renewable electricity in spring while still importing substantial volumes during winter.

In May, some hydropower plants had to release water without generating electricity. Industry estimates of the associated financial impact vary and should be treated cautiously, but the operational problem itself is clear.

A seasonal electricity exchange arrangement with Turkey was expected to provide some relief by allowing Georgia to export power in May-July and receive an equivalent volume back in autumn. The mechanism can reduce immediate curtailment, but it does not replace domestic flexibility.

Longer-term responses include storage, reservoir and pumped-storage hydropower, stronger export links, more flexible consumption and market incentives that encourage industrial demand during surplus hours. For investors, addressing curtailment risk is becoming as important as adding new renewable capacity.

The article is based on market data reported by BM.ge, GBC and Galt & Taggart, together with sector commentary on renewable curtailment.