1、Georgia Energy ProfileThe IEA examines the full spectrum of energy issues including oil,gas and coal supply and demand,renewable energy technologies,electricity markets,energy efficiency,access to energy,demand side management and much more.Through its work,the IEA advocates policies that will enhan

2、ce the reliability,affordability and sustainability of energy in its 31 member countries,11 association countries and beyond.This publication and any map included herein are without prejudice to the status of or sovereignty over any territory,to the delimitation of international frontiers and bounda

3、ries and to the name of any territory,city or area.Source:IEA.International Energy Agency Website:www.iea.orgIEA member countries:AustraliaAustriaBelgiumCanadaCzech RepublicDenmarkEstoniaFinlandFranceGermanyGreeceHungaryIrelandItalyJapanKoreaLithuaniaLuxembourgMexicoNetherlandsNew ZealandNorwayPolan

4、dPortugalSlovak RepublicSpainSwedenSwitzerlandRepublic of TrkiyeUnited KingdomUnited StatesThe European Commission also participates in the work of the IEAIEA association countries:ArgentinaBrazilChinaEgyptIndiaIndonesiaMoroccoSingaporeSouth AfricaThailandUkraineINTERNATIONAL ENERGYAGENCYGeorgia Ene

5、rgy Profile Table of contents PAGE|1 I EA.CC BY 4.0.Table of contents Overview.2 Country overview.2 Key energy data.3 Energy sector governance.5 Regulatory framework.8 Key policies.10 Energy statistics.11 Energy security.13 Energy system adequacy.13 Natural gas.15 Oil and oil products.17 Hydrocarbon

6、 exploration and production.19 Electricity.19 Energy system transformation.26 Energy and climate change.26 Energy and environmental protection.28 Energy efficiency.30 Renewable energy.32 Technology research,development,demonstration and deployment.37 Georgia Energy Profile Overview PAGE|2 I EA.CC BY

7、 4.0.Overview Country overview Located in the South Caucasus region at the crossroads of Western Asia and Eastern Europe,Georgia is bounded on the west by the Black Sea,on the north by the Russian Federation(hereafter“Russia”),on the south by Trkiye and Armenia,and on the southeast by Azerbaijan.Bei

8、ng on the shortest route between Europe and Asia,Georgias transport system is a key link in the historic Silk Road trade network.Tbilisi is Georgias capital and largest city,and the country covers a territory of 69 700 square kilometres(km2)with a population of 3.7 million.It is a unitary semi-presi

9、dential republic,with the government elected through a system of representative democracy.Georgias overall economic policy has been focused on creating a liberalised economic environment through minimal state interference,deregulation,privatisation,reduced and simplified licensing and taxation,and f

10、ree trade.It has therefore been pursuing westward-oriented political,economic and foreign policies,and signed an association agreement(including assent to the Deep and Comprehensive Free Trade Area)with the European Union in June 2014.The European Parliament ratified the Association Agreement in Dec

11、ember 2014,and in October 2016 the Georgian Ministry of Energy signed an Accession Protocol to the Energy Community Treaty,ratified by the parliament in April 2017.The country has been a signatory to the Energy Charter Treaty since 1995 and a member of the World Trade Organization since 2000.The ref

12、orms that followed have included adoption of the Law on Energy and Water Supply and the Law on Support of the Renewable Energy Sources in December 2019.Laws on Energy Efficiency and Energy Performance of Buildings were adopted on 21 May 2020.Average annual economic growth of 3.6%between 2017 and 202

13、1 was achieved through structural reforms that stimulated capital inflows and investment,but it was seriously hampered by the Covid-19 crisis.Reforms improved the business environment,strengthened public finances,upgraded infrastructure facilities and liberalised trade.Growth was also supported by i

14、ncreased foreign direct investment(FDI)and was driven by capital accumulation and the sound use of excess capacity rather than by net job creation,with productivity gains concentrated mainly in the Georgia Energy Profile Overview PAGE|3 I EA.CC BY 4.0.non-tradeable sectors.Gross domestic product(GDP

15、)per capita(in current prices)increased from USD 920 in 2003 to USD 5 015 in 2021.1 Georgia has developed a stable and reliable energy sector that has been largely unbundled since the mid-1990s;its primary domestic energy sources are hydropower and fuelwood.The government is focused on securing priv

16、ate investment to construct new hydropower stations,increase thermal generation efficiency and diversify fossil fuel supply sources and routes,but further efforts are required to improve efficiency in domestic energy use and to capitalise on the countrys ample renewable energy potential.Key energy d

17、ata TES:4.94 Mtoe(natural gas 47.1%;oil and oil products 26.6%;hydro 14.4%;coal 4.3%;bioenergy 4.6%;other renewables 0.5%),+58.3%since 2010.TES per capita:1.33 toe/cap(world average:1.80 toe/cap)TES per unit of GDP:99 toe/2015 USD million PPP(world average:113 toe/USD million PPP)Energy production:1

18、.04 Mtoe(hydro 68.0%;bioenergy 21.8%;coal 3.9%;oil 3.0%;other renewables 2.5%;natural gas 0.7%),-20.5%since 2010.Supply2 2 Georgias energy production covers about one-fifth of its energy demand(21.1%in 2020).Most of Georgias domestic energy production(1.043 Mtoe in 2020)comes from hydro(0.709 Mtoe)a

19、nd bioenergy(0.227 Mtoe).Fossil fuel production exists but is very limited(40.3 ktoe of lignite,31.8 ktoe of crude oil and 7.7 ktoe of natural gas in 2020).Imports Georgia depends on imports for all its natural gas(2.7 bcm in 2020)and most of its oil products(1.33 Mt in 2020).Oil is imported mainly

20、in the form of refined oil products(42.1%diesel and 40.4%gasoline).1 Preliminary figures for 2021.2 https:/www.geostat.ge/media/28552/Saqartvelos-Energetikuli-Balansi_2018_GEO.pdf.Georgia Energy Profile Overview PAGE|4 I EA.CC BY 4.0.Demand Georgias final energy consumption was 4.49 Mtoe in 2020.Fro

21、m 2000 to 2020,both final energy demand and electricity consumption per capita more than doubled,and are very close to global averages.The final energy mix is relatively diverse compared with other countries in the region.In 2020,natural gas was the first fuel in the mix(38.5%),followed by oil produ

22、cts(29.3%)and electricity(22.0%).The remainder is covered by renewables(5.5%)and coal(4.7%).About 80%of Georgias electricity generation comes from hydro resources(80.5%in 2021),with the remainder produced from natural gas and from a 20.7-megawatt(MW)wind power plant(83.4 GWh in 2020).The residential

23、 sector has the largest share of final energy consumption(1.41 Mtoe in 2020),followed closely by transport(1.34 Mtoe in 2020).Although the transport sector has historically claimed the highest share,Covid-19 lockdowns reversed this trend.Renewables The share of renewables in Georgias electricity mix

24、 is among the highest in the world(81.1%in 2021).Energy production and self-sufficiency Georgias energy-policy aim is to raise the countrys energy security,guaranteeing an uninterruptable supply of various energy products of acceptable quantity,quality and price to support national interests.As a ne

25、t oil and gas importer,Georgia relies heavily on imports of natural gas,oil products and hard coal to meet most of its energy needs.In fact,net imports in total energy supply(TES)rose from 47%in 2002 to 81.4%in 2020 to meet rising energy demand.After the energy crisis of 2006,the country began reduc

26、ing imports from Russia and increasing those from Azerbaijan,with 84.1%of natural gas and 17.9%of oil consumption now imported from Azerbaijan.Gas imports are highest during the winter months when there is a greater need for heating and less hydropower capacity is available for electricity generatio

27、n.Interconnected with Russia,Azerbaijan,Armenia and Trkiye,Georgia exports its seasonal excesses of electricity from hydropower,but it has registered negative net electricity exports since 2012(except in 2016).Since 2016,Azerbaijan has been Georgia Energy Profile Overview PAGE|5 I EA.CC BY 4.0.trans

28、iting its electricity to Trkiye via Georgia.Transits from neighbouring countries peaked in 2021 at 1.18 TWh,of which nearly 61%was transited from Azerbaijan to Trkiye.Because of Georgias substantial rise in domestic energy demand and the seasonality of hydropower generation,the government is explori

29、ng all avenues to diversify oil and natural gas supply sources at the same time as aggressively promoting further hydropower development.It is also co-operating closely with neighbouring economies to develop projects for transiting energy through its territory to secure additional natural gas supply

30、 sources.Crucial to its energy security,Georgia is trying to develop its own gas storage to hold strategic volumes of gas stocks and to regulate seasonal imbalances in supply and consumption.An underground option with an active gas volume capacity of 210-280 mcm has been studied extensively,but the

31、final decision is still pending.Fuelwood,the main fuel source for space heating in rural areas,accounts for 21.6%of energy produced from domestic sources.Most wood for fuel is harvested unsustainably and used inefficiently,which has led to forest depletion and related environmental problems.While ex

32、tending gas access to rural areas has significantly reduced fuelwood consumption,it is still more than double the level of sustainable use.To remedy this situation,the state is introducing new forest management practices and supporting the production and use of upgraded modern biofuels made from was

33、te biomass.Energy sector governance Executive As the body tasked with governing the energy sector,the Ministry of Economy and Sustainable Development(MoESD)is responsible for state policy in the energy sector as well as policies related to sustainable development of the countrys economy.3 It leads e

34、nergy sector reforms to implement the relevant EU directives and regulations in compliance with Energy Community membership.It took over the responsibilities of the former Ministry of Energy in 2017 and can adopt secondary legislation related to the energy sector(through ministerial orders).To ensur

35、e sustainable resource development and protection of the environment,the Ministry of Environment Protection and Agriculture(MEPA)develops national 3 In November 2017 the MoESD absorbed the Ministry of Energy,with its functions transferred accordingly.Georgia Energy Profile Overview PAGE|6 I EA.CC BY

36、 4.0.policies and strategies on environmental and natural resource protection and engages in forest and waste management,in addition to other activities.The Georgian Energy Development Fund is a state-owned joint-stock company(JSC)created in 2010 and reporting to the MoESD.Its mission is to develop

37、Georgias renewable energy potential by identifying promising renewable energy projects and supporting their development through pre-feasibility studies and preliminary environmental impact assessments,and by finding investors.The Public-Private Partnership Agency was created following adoption of th

38、e Law on Public-Private Partnerships in May 2018.The agencys mandate is to lead the development and implementation of public-private co-operation projects.Georgian State Electrosystem(GSE)is an electricity transmission system operator.The company owns and operates 3 550 km of transmission lines and

39、93 substations spread throughout the country.The National Dispatch Centre manages the transmission network,and three regional networks(East,West and Kakheti)provide technical maintenance.GSE also manages the cross-border transmission lines interconnecting Georgia with Russia,Trkiye,Armenia and Azerb

40、aijan.Georgias Electricity Market Operator(ESCO)exclusively oversees electricity balancing and guaranteed capacity trading,manages seasonal electricity imports/exports and inspects the wholesale metering nodes.Georgian Oil and Gas Corporation(GOGC)owns the main gas pipeline system and ensures the un

41、impeded operation of transboundary oil and gas transportation systems on Georgias territory.It also develops and operates gas-fired power plants.Georgian Energy Exchange(GENEX)is a JSC established in 2019 by GSE and ESCO to function as a market operator.GENEXs main tasks include operating the day-ah

42、ead market,the intraday market and the bilateral contracts market.It also manages the financial clearing system for the day-ahead and intraday markets.Legislative The Constitution lays out the legislative process for introducing primary legislation in the energy sector.Legislative initiative is the

43、prerogative of the government,ministries(initiating laws through the government),parliamentary committees,groups or individual members of parliament,and citizens when an initiative has at least 30 000 supporters.By default,laws are adopted in three hearings by the parliament and enter into force 15

44、days after publication.Georgia Energy Profile Overview PAGE|7 I EA.CC BY 4.0.Regulations and secondary legislation are also initiated and passed by the Georgian National Energy and Water Supply Regulatory Commission(GNERC)and the MoESD(through ministerial orders).GNERC does not have the right to ini

45、tiate primary legislation and its regulations cannot come into force until at least 21 days after initiation,but the time frame for ministerial orders is not regulated.The parliamentary Committee on Sectoral Economy and Economic Policy oversees energy sector developments through regular or topical h

46、earings with the participation of the MoESD and other stakeholders.The parliamentary Environmental Committee is concerned with the environmental impact of energy projects as well as forestry reform,which may influence the use of biomass as a fuel.Judiciary GNERC resolves disputes among regulated mar

47、ket participants or between consumers and service providers in the energy sector.Cases are resolved in open hearings,but if parties disagree with the GNERC decision they are authorised to take their case to the general courts.Among the cases that have been taken to the Constitutional Court,one initi

48、ated in 2002 questioned the new tariff adjustment and amendments to the Electricity and Natural Gas Law and the ministerial order related to communal metering.Regulation GNERC,Georgias independent energy and water supply regulator,was established in 1997 and its responsibilities include:regulating t

49、he activities of importers and exporters and of the market operator/supplier(ESCO);monitoring the electricity market and approving market rules;licensing electricity generation,transmission,dispatch and distribution;licensing natural gas transportation and distribution;regulating electricity generat

50、ion,transmission,distribution and end-user tariffs and import prices;resolving disputes;developing metering,billing and collection services;and approving grid codes.GNERC also sets caps on wholesale prices for existing plants based on their costs,except for small and medium-sized hydropower plants(H

51、PPs)developed since 2008.GNERC also does not regulate power purchase agreement prices for new HPPs under development.The State Agency for Oil and Gas was established in 1999 as an independent regulatory body under the Oil and Gas Law,to oversee and regulate oil and gas exploration and production act

52、ivities.Since 2013,the State Agency for Oil and Gas has been a legal entity under public law within the Ministry of Energy(currently the Georgia Energy Profile Overview PAGE|8 I EA.CC BY 4.0.MoESD)and is responsible for regulating oil and gas operations,oil refining,gas processing,and/or transportat

53、ion activities in Georgia according to Oil and Gas Law Amendment No.467 of 25 March 2013.Regulatory framework The new Law on Energy and Water Supply,approved by Georgias parliament in 2019,was developed in co-operation with the Energy Community to transpose the requirements of key electricity and ga

54、s directives into Georgian legislation.The law creates the legal framework to develop a more independent,competitive and liquid market by unbundling and granting certification to transmission and distribution system operators.In 2019-2020,the Parliament approved the Law on Energy Efficiency,the Law

55、on Energy Efficiency of Buildings,the Law on the Promotion of Production and Use of Energy from Renewable Sources,and the Energy Labelling Law.However,a system of secondary legislation needs to be developed for effective implementation of these laws.This process is ongoing.According to the Energy Ef

56、ficiency Law,state policy on energy efficiency aims to create a legal framework for energy efficiency,define a national energy efficiency target and eliminate barriers hindering energy efficiency development.On 23 December 2019,the government of Georgia approved the National Energy Efficiency Action

57、 Plan 2019-2020 for implementation of the energy efficiency policy by Decree N2680.Since the beginning of 2021,the MoESD has been working on an integrated National Energy and Climate Plan(NECP)for 2030 covering the five priority areas of a possible energy union:energy security the internal energy ma

58、rket energy efficiency decarbonisation and renewable energy sources research,innovation and competitiveness.The draft NECP must be approved by parliament as part of the countrys National Energy Policy and submitted to Energy Community Secretariat in the summer of 2023.Previously,in December 2019 Geo

59、rgias government adopted a National Renewable Energy Action Plan(NREAP),but its activities covered 2019-2021 only.While the Georgia Energy Profile Overview PAGE|9 I EA.CC BY 4.0.NREAP dictated that support schemes for small-scale heating and cooling from renewable energy sources should not yet be im

60、plemented but instead be reflected in bylaws,measures for developing renewable energy are now included in the NECP to be approved in the spring of 2023.The Law on Energy and Water Supply provides the legal basis for power-related secondary legislation,the main pieces of which are the Electricity Mar

61、ket Model Concept and the Electricity Market Rules.By Decree No.246 of 16 April 2020,the government of Georgia adopted the Electricity Market Model Concept,which introduces general organisational principles for the wholesale electricity trade market:Competitive,transparent and free trade on electric

62、ity markets.Avoidance of conflicts of interest and discrimination.Sale of electricity on the wholesale market by means of a competitive market,particularly through bilateral agreements and/or on organised electricity markets,including day-ahead intraday and balancing markets.Trade of electricity on

63、organised markets only,by public energy enterprises and service providers using the facilitation mechanism/scheme envisaged under the Law on Facilitation of Production and Use of Renewable Energy.Determination of hourly generation and consumption schedules,means of electricity generation/consumption

64、,and loading capacity by the responsible persons(self-dispatching).Hourly trade on organised markets and,accordingly,liability of market participants for hourly imbalances.Purchase of electricity only on day-ahead and intraday markets to reimburse losses.Allocation of cross-border capacities in acco

65、rdance with transparent and fair rules.In 2019,the first Energy Exchange was established in Georgia.The Energy Exchange is a neutral,unbiased and transparent organisation that,upon obtaining appropriate licences,will act as an operator of organised electricity markets.The Exchange will ensure the in

66、troduction and operation of day-ahead and daily markets through the software services of Nord Pool Consulting.It will apply the Electricity Supply and Consumption Rules and the Electricity(Capacity)Market Rules(2006;amended in 2010 and since),which outline the electricity and natural gas tariff meth

67、odology and conditions for retail and power supply markets.In 2013,the government approved Resolution No.214 on the Approval of Rules for Expression of Interest in Conducting Technical and Economic Feasibility Studies for the Construction,Ownership and Operation of Power Plants in Georgia.Georgia En

68、ergy Profile Overview PAGE|10 I EA.CC BY 4.0.The Law on Oil and Natural Gas(1999)created a unified legal framework for state regulation,supervision,control and development of oil and gas resources and oil refining,gas processing and transportation,and for pursuing a unified national policy in these

69、fields.It also made the Oil and Gas Agency responsible for regulating the subsector.Key policies The main directions of the draft National Energy Policy(NEP)are:Diversification of external energy supply sources.Increased energy sector resilience throughout the country.Greater renewable energy resour

70、ce use,to become a regional leader in clean energy production and trade.Development of fossil energy resources for greater energy security.Increased energy supply and consumption efficiency.International energy co-operation,including regional energy trade development.Co-operation through an energy u

71、nion and with the ENTSO-E Continental Europe Synchronous Area.Energy market reform and establishment of a competitive market.Reduced environmental impact.Climate change mitigation and adaptation.Better service quality and protection of customer interests.Elimination of energy poverty and help for vu

72、lnerable consumers.Research,innovation and technological development.The National Integrated Energy and Climate Plan,which forms the appendix of the NEP,formulates the concrete state policies and measures of these directions in detail.Meanwhile,GSE prepared its Ten-Year Network Development Plan of G

73、eorgia for 2021-2031 and the MoESD approved it on 17 February 2021 by Order No.1-1/42,and the GOGC Board of Directors has approved the Ten-Year Development Plan for Georgian Gas Transmission Infrastructure 2021-2030.As a participant of COP21 and a signatory to the Paris Agreement,Georgia submitted a

74、n Intended Nationally Determined Contribution(INDC)to the United Nations Framework Convention on Climate Change(UNFCCC).Then,in 2021 the Ministry of Environmental Protection and Agriculture,with technical assistance from GIZ,Georgia Energy Profile Overview PAGE|11 I EA.CC BY 4.0.developed and submit

75、ted a more ambitious Nationally Determined Contribution(NDC)with its Climate Action Plan 2021-2030.Launched in 2019 and funded through the European Unions EU4Climate programme,Georgias Low Emission Development Strategy(LEDS)aims to develop a gender-sensitive emissions-reduction strategy by mid-centu

76、ry to help Georgia fulfil its Paris Agreement commitments.The LEDS is also meant to be used as a foundation for environmentally sound long-term planning in several sectors:energy;buildings;industry;transport;agriculture;land use,land-use change and forestry(LULUCF);and waste.The draft was submitted

77、in 2022.Energy statistics Official energy statistics are the responsibility of the National Statistics Office of Georgia(Geostat).Seven staff members dedicate part of their time to compiling energy statistics in addition to industry and construction statistics.Energy data are collected annually thro

78、ugh a set of questionnaires sent to all sectors of the economy(services are surveyed every five years).Since 2015,enterprises have been obligated by law to reply to surveys and may do so through online forms,but in-person interviews are conducted for households.Geostat aims to increase the use of ad

79、ministrative data for source data or for data-checking.The main energy publication is the Energy Balance of Georgia.It contains annual supply and demand data for all fuels,in physical and energy units broken down by sector,as well as information on power plant capacities.The underlying data can be d

80、ownloaded from the Geostat website in Excel format.Official annual data are shared with the United Nations Statistics Division(UNSD)and the International Energy Agency(IEA)through five joint IEA/Eurostat/UN Economic Commission for Europe(UNECE)questionnaires.Monthly oil and gas data are also collect

81、ed and transmitted to the UNSD for publication through the Joint Organisations Data Initiative(JODI).In 2016,when Georgia became an Energy Community member,additional indicators for energy statistics were required in accordance with European Parliament and Council regulations.To fulfil these reporti

82、ng obligations,Geostat submits annual energy questionnaire responses to the IEA and Eurostat(for coal,electricity,renewables,oil and gas).4 Since 2018,Geostat has also been publishing monthly oil and gas data as well as electricity and gas prices.4 https:/www.iea.org/statistics/resources/questionnai

83、res/.Georgia Energy Profile Overview PAGE|12 I EA.CC BY 4.0.Geostat has an active institutional co-operation policy and holds regular meetings with its main data providers and users,such as the Ministry of Energy(now the MoESD),the GOGC and GNERC.It also leads an informal national energy statistics

84、consulting group that serves as a platform for dialogue and information-sharing among national data providers and users.Geostats official energy statistics are openly accessible in the public domain.5 Since 2014,Geostat has been responsible for compiling the official Energy Balance of Georgia and pu

85、blished the first one in that year(2013 data).To achieve this,it was necessary to introduce new data collection to obtain information on the final consumption of energy resources,and at the same time Geostat adopted international standards and a methodology for collecting and compiling energy data(s

86、olid biomass data are considered representative).6 Energy consumption data do not include end-use data from Abkhazia and South Ossetia,however.Furthermore,Geostat conducted a household survey in 2017 to collect information on end uses of energy(e.g.for space heating and cooking),establishing a basis

87、 for the government to formulate energy efficiency indicators.7 The survey is to be conducted every five years,and with IEA support Geostat has also begun compiling datasets for the industry and residential sectors.The next household energy consumption survey was conducted in the summer of 2022 and

88、the results will be published before the end of the year.The MoESD is among the main users of Geostats energy data.The energy module of the national greenhouse gas(GHG)inventory,prepared by the Ministry of Environmental Protection and Agriculture,is based mostly on the official energy balance.Althou

89、gh available energy data could be used to improve energy planning,including through long-term energy modelling,this potential is currently being realised to only a limited extent.Geostats medium-term strategy therefore also includes the compilation of energy efficiency data.8 5 https:/www.geostat.ge

90、/en.6 https:/unstats.un.org/unsd/energystats/methodology/ires/.7 https:/webstore.iea.org/energy-efficiency-indicators-essentials-for-policy-making.8 https:/www.geostat.ge/en/modules/categories/630/strategy-for-the-development-of-statistics.Georgia Energy Profile Energy security PAGE|13 I EA.CC BY 4.

91、0.Energy security Energy system adequacy Resource endowment Hydro resources are one of Georgias most important natural riches.Approximately 300 rivers are significant for energy production,with total annual potential capacity of 15 000 MW and production potential of 50 TWh.According to GNERC,however

92、,only 22.5%(3 380.2 MW)are used for hydropower.Georgias wind energy potential is estimated at 4 TWh(1 500 MW).The average wind speed fluctuates from 2.5 metres per second(m/s)to 9 m/s.The most favourable places for wind farms are being identified over the entire country.Meanwhile,solar energy potent

93、ial is high,with annual solar days ranging from 250 to 280 and amounting to 1 900-2 200 hours.Solar irradiance in Georgia varies between 1 250 kWh/m2 and 1 800 kWh/m2 annually,and total solar energy potential is estimated at 108 MW.Household solar water heating systems have been installed in rural a

94、reas,where solar energy warms water to 40-50C.Georgias geothermal water stock is estimated at 200-250 mcm annually.Temperatures range from 30C to 110C,and the total debit is 160 000 m3 per day.More than the 80%of geothermal deposits are in western Georgia and the Zugdidi-Tsaishi geothermal field,as

95、well as in Abkhazia.The relatively low temperature of Georgias geothermal waters does not,however,allow for electricity generation.Economically viable reserves of crude oil were estimated at 5 Mt in 2012 with resources of 50 Mt,and natural gas reserves at 8 bcm with 102 bcm of resources.Hard coal re

96、serves were 201 Mt in the same year,with 700 Mt of brown coal resources,and in 2022,16 bcm of natural gas deposits were discovered near Tbilisi.The government and the private sector continue exploration work,expecting more deposits to be found.System reliability Reliability in both the natural gas a

97、nd electricity systems is improving.According to the MoESD,there have been no major outages in recent years,owing to rehabilitation and refurbishment of gas and electricity networks.Outages and losses are reported to GNERC as part of licensing obligations and are measured by the standard System Geor

98、gia Energy Profile Energy security PAGE|14 I EA.CC BY 4.0.Average Interruption Duration Index(SAIDI)and the System Average Interruption Frequency Index(SAIFI).In 2021,due to planned and unplanned outages the SAIDI indicator totalled 429.87 minutes,and the SAIFI amounted to 5.98 for Telasi JSC.For En

99、ergo-Pro(EP)Georgia JSC,the SAIDI indicator reached 1992.48 minutes,while the SAIFI was 24.13.Electricity transmission network losses are around 2%and outages are rare.The collection rate is nearly 100%and estimated commercial losses are minimal.Technical losses in the gas sector are around 0.5%in t

100、he transmission network,and loss detection is performed during regular field visits and using the Global System for Mobile Communications(GSM).Equipment for loss detection includes some advanced leak detection technologies and leakage metering equipment.Emergency response The Law on the State of Eme

101、rgency(2005)defines and regulates emergency response,but Georgia has no declared strategy for emergency stockholding or fuel switching mechanisms for energy supply disruptions.The government estimates that Georgias minimum strategic reserve for gas should be 120 mcm and is considering various storag

102、e options.Gas from the countrys proposed underground storage facility would be used to compensate for recurring winter deficits,which are expected to reach 200 mcm by 2030.Emergency oil product reserves are also being considered,to be built up by obligating oil product supply companies to hold stock

103、s of oil products in addition to their normal operating requirements.Possible arrangements and compensation schemes are under discussion.Fuel switching Despite the general trend towards hydropower development,Georgia has no formal strategy for switching away from fossil fuels.In fact,a new gas-fired

104、 thermal power plant has been constructed and another 272 MW of capacity is under way to replace old,inefficient thermal units and increase the efficiency of gas-based generation.According to the draft National Energy Policy,the government is planning to improve Georgias energy security by 2030 by:D

105、iversifying external energy supply sources,including gas supply alternatives(i.e.LPG,LNG and CNG swapping options).Georgia Energy Profile Energy security PAGE|15 I EA.CC BY 4.0.Reducing import dependency through energy efficiency and renewable energy development.Developing infrastructure,improving s

106、ystem safety and reliability,and installing SCADA and WAMS systems.Integrating renewable energy into the grid using new clean-energy technologies,including green hydrogen production,storage systems and microgrids.Exploring the countrys own fossil fuel reserves.Creating gas storage and emergency rese

107、rves of oil products.Developing its own oil refining capacity.Replacing outdated thermal units with combined-cycle gas plants.Improving security(cyber,kinetic,etc.).Natural gas Infrastructure Georgia has gas pipeline connections with Armenia,Azerbaijan,Russia and Trkiye,and oil connections with Azer

108、baijan and Trkiye as well as a Black Sea oil terminal in Supsa.It imports natural gas from Azerbaijan and Russia,and transits gas from Russia to Armenia and from Azerbaijan to Trkiye and further to Europe.Georgias oil product imports come from Azerbaijan,Russia and Turkmenistan,and it transits crude

109、 oil from Azerbaijan and Kazakhstan to Trkiye.The Karadaghi-Tbilisi gas interconnection is the main pipeline for Georgia to import gas from the Azeri gas field,from the State Oil Company of Azerbaijan Republic(SOCAR).It has a diameter of 700 mm,and the Georgian section is 46 km long.More gas imports

110、 reach Georgia from Azerbaijan by way of the South Caucasus Pipeline(SCP),which transports gas from the Shah Deniz field parallel to the route of the Baku-Tbilisi-Ceyhan(BTC)crude oil pipeline from Azerbaijan through Georgia to Trkiye.The SCP is 692 km long(442 km in Azerbaijan and 250 km in Georgia

111、),1 067 mm in diameter and has a capacity of 8 bcm.With the 2019 completion of the second phase of Shah Deniz gas field developments,SCP Expansion(SCPX),and construction of the Trans-Anatolian Natural Gas Pipeline(TANAP)and the Trans-Adriatic Pipeline(TAP),additional gas is now flowing to Trkiye and

112、 thence to European countries for a total volume of 16 bcm.To increase system transmission capacity to 24 bcm,a parallel gas pipeline and additional compressor plants(61 MW each)were constructed in Georgia as part of the SCPX and commissioned in 2018.Georgia Energy Profile Energy security PAGE|16 I

113、EA.CC BY 4.0.Underground gas storage is crucial to Georgias energy security,to provide seasonal supply-demand balancing as well as compensate for possible supply interruptions.A 2016 feasibility study by the French company Geostock concluded that it is technically feasible to build an underground ga

114、s storage facility in the depleted Samgori Southern Arch oilfield and defined conditions for its commercial viability.However,funds allocated for the project have since been diverted into Georgias Covid-19 emergency fund,so the projects future is uncertain.The North-South Gas Pipeline(NSGP)system is

115、 used to supply Georgia with Russian gas and transit it to Armenia.Georgias section of the NSGP(diameter 1 200 mm;length 133 km;operating pressure 55 bars)was built in 1988-1994,traversing eight separate tunnels totalling 4.6 km in length.Currently,the pipeline is still used mainly to transit gas fr

116、om Russia to Armenia,but significantly less than in previous years.In 2019,the pipeline transported 1.94 bcm of natural gas to Armenia and 0.17 bcm to Georgia.Georgias internal market receives gas through the East-West and North-South Main Gas Pipeline systems,consisting of the Kazbegi,Kakheti,South

117、ern,Ajara and Poti branches.Georgias gas pipeline system is connected to Russias by the North-South Main Gas Pipeline System at the Georgia-Russia border,by the South Caucasus Pipeline entering from Azerbaijan at the Georgian-Azeri border and by the pipeline connection with Armenia near the Georgian

118、-Armenian border.The integrated gas supply system also includes 19 000 km of gas distribution pipelines,gas distribution stations,metering units,and two currently inactive compressor stations.Gas market structure In the gas sector,the GOGC administers the states share of gas obtained under productio

119、n sharing agreements(PSAs)and manages its preparation,storage,transportation and sale.The GOGC ensures the long-term sustainable development of the wholesale natural gas market to safeguard energy security,and it constructs,commissions,rehabilitates and replaces gas pipelines on Georgian territory.T

120、hree companies extracted associated gas in 2021:Ninotsminda Oil Company,a subsidiary of Blake Oil and Gas(XIE licence block);Block Energy(XIF,XIC,XIC,XIB,IX);and NVP Georgia(VIIIB).In addition,American-owned Frontera Resources produces minor amounts of gas and has announced the discovery of huge gas

121、 reserves,although no progress or confirmation have yet followed.In 2022,the State Agency of Oil and Gas(SAOG)announced that a 16-bcm natural gas field had been discovered near Tbilisi.Block Energy limited liability company(LLC),the areas current licence-holder with shares traded on the London Stock

122、 Exchange,owns Georgia Energy Profile Energy security PAGE|17 I EA.CC BY 4.0.the right to extract resources from the two blocks.The licence requires horizontal drilling,with Block Energy expected to start working on the project late this year or early in 2023.Natural gas transmission,distribution an

123、d retail services are fully unbundled in Georgia.GOGC subsidiary Georgian Gas Transportation Corporation(GGTC)is the gas transmission system operator,and the numerous gas distribution system operators are all private companies.SOCAR Gas is the largest distribution system operator with its two subsid

124、iary companies(24.94%and 36.05%of the retail market),and it distributes gas to Georgias regions.Tbilisi Energy is the largest distribution system operator in Tbilisi,with a 24.87%share of the retail market.9 Many private companies are involved in gas retail.GGTC operates the main gas pipeline system

125、,except the Georgian section of the SCP,which is operated by SOCAR.GNERC determines the licensing rules and conditions for natural gas transportation and distribution,and it also regulates the tariffs for natural gas transportation,distribution,pass-through,supply and consumption.Cross-border interc

126、onnections Georgia has gas pipeline connections with Armenia,Azerbaijan,Russia and Trkiye.It imports natural gas from Azerbaijan and Russia and transits gas to Trkiye and Armenia.The 1 200-mm and 700-mm North-South Gas Pipelines transport 2-2.4 bcm of natural gas from Russia to Armenia annually.The

127、692-km SCP,now operated by a SOCAR subsidiary,currently transports about 16 bcm of natural gas from the Shah Deniz gas field and connects to the Turkish gas system at Erzurum;the SCPX will raise natural gas transport to 24 bcm.Cross-border agreements with suppliers in neighbouring countries are bila

128、teral,but Georgia is also focused on developments in gas transit from the Caspian Sea to European markets,as this would diversify its imports and provide transit revenue.Oil and oil products As Georgia does not have a developed oil refining industry,it mainly imports oil products from the world mark

129、et.Oil products made up 26.6%of Georgias TES in 2020,with imports coming from various countries but mostly Azerbaijan,Russia,Turkmenistan,Romania and Bulgaria.9 GNERC(2020),Annual Report.Georgia Energy Profile Energy security PAGE|18 I EA.CC BY 4.0.Transport infrastructure Oil transport pipelines se

130、rve mainly for transit purposes for exporting Azeri and Kazakh oil to the world markets.The oil pipelines passing through Georgia are directly connected to terminals on the Black Sea coast and,through Trkiye,to Mediterranean terminals and Southeast European countries.The BTC pipeline transports crud

131、e oil from Azerbaijan via Georgia to Trkiyes Mediterranean port of Ceyhan,and from there the oil is shipped by tanker to world markets.The BTC pipeline is 1 768 km long,with 443 km in Azerbaijan,249 km in Georgia and 1 076 km in Trkiye,and has been in operation since May 2005.Operational since 1999,

132、the Baku-Supsa Pipeline transports crude oil from offshore oilfields in the Caspian Sea(belonging to Azerbaijan)to Supsa,Georgia,on the Black Sea,where it continues to European markets via tankers.Of the pipelines 829 km,375 km are in Georgia,and it has a capacity of 145 000 barrels per day.Recent a

133、greements between Kazakhstan,Azerbaijan and Georgia will ensure the transport of increased volumes of Kazakh oil through these pipelines.Oil market structure The State Agency of Oil and Gas is a legal entity of the Ministry of Energy.Under the Oil and Gas Law,it regulates oil and gas operations,refi

134、neries and transportation.The state-owned Partnership Fund owns the GOGC and has transferred 100%of GOGC shares to the Ministry of Energy(now the MoESD)for oversight as well as management rights.The GOGC administers the states share of oil produced under PSAs and manages its processing,storage,trans

135、portation and sale.It is responsible for:commissioning,rehabilitating and replacing oil pipelines on Georgian territory;designing and constructing new pipelines;building,sustaining and operating necessary infrastructure;implementing projects for transporting Caspian oil and resources obtained from o

136、ther regions via trunk pipelines within Georgia;and participating in and implementing national and international projects to explore,transport and supply energy resources to ensure Georgias energy security.The GOGC also funded the construction and commissioning of two 230-MW combined-cycle gas turbi

137、ne(CCGT)plants in 2015 and 2019,and a 20.7-MW wind farm in 2016.The Association of Oil Product Importers and Distributors was established in March 2004.Its main objective is to assist in creating flexible,simple and clear customs and tax codes for oil production,import and distribution.It is involve

138、d in aligning oil market legalisation with the Georgian constitution and other legislation,and co-operates with legislative and executive powers to prepare draft legislation.It also monitors available oil Georgia Energy Profile Energy security PAGE|19 I EA.CC BY 4.0.market information and conducts i

139、ts own research.Oil product import,storage and transportation are carried out by private businesses.Hydrocarbon exploration and production Investor companies,selected through international tenders,sign PSAs with the state and carry out exploration and production work through Georgian subsidiary oper

140、ation companies that perform the activities.To date,24 PSAs have been concluded between the government of Georgia and investor companies and,apart from the GOGC,seven oil companies are operating under these contracts:the Norio Operating Company,the Block Operating Company,the Kura Basin Operating Co

141、mpany,NVP Georgia,West Gulf Petroleum Engineering,Georgia Coalition Energy Limited and OMV Petrom.10 Only one company,Saknakhshiri LLC,extracts coal in Georgia.In 2019,after several coalmining accidents,the Georgian Industrial Group sold the company for a symbolic price to the Steel International Tr

142、ading LLC.According to its managers,the company plans to increase annual production to 400 000 tonnes/yr.Electricity Electricity generation In 2021,HPPs provided 80.5%of Georgias electricity,with natural gas-fired facilities generating 18.8%and wind power accounting for about 0.7%.The 1 300-MW Engur

143、i hydro facility is the backbone of the countrys electricity generation system.Small and medium-sized hydro facilities totalling 2 080.2 MW(as of 2021)also provide domestic power,either on a regular basis or seasonally.11 Because Georgias main long-term policy objective is to satisfy the countrys ov

144、erall demand for electricity with domestic hydro resources,in addition to tendering new large HPPs the Ministry of Energy has sought foreign investment to develop new small and medium-sized HPPs.The Georgian government plans to facilitate further development of smaller renewable energy technologies,

145、especially micro hydropower plants and solar power systems.Under the Electricity Supply and Consumption Rules,GNERC has ensured micro power plants free access to the network and established fixed tariffs for electricity produced by these plants(Resolution No.20,Amendment to Electricity Supply and 10

146、 https:/www.gogc.ge/en/page/activities-fields/oil/7.11 GNERC(2021),Annual Report.Georgia Energy Profile Energy security PAGE|20 I EA.CC BY 4.0.Consumption Rules).Important steps were also taken in 2015 when GNERC developed a legal framework for net metering.In 2022,feasibility studies were in progre

147、ss for 100 HPPs(1 014 MW of total capacity),and 56 HPPs(1 914 MW)were at the licensing and construction stage.In 2016,Georgias first wind power plant,Qartli Wind Farm,with installed capacity of 20.7 MW and annual generation of 88 GWh,was commissioned in the Shida Kartli region of the Gori and Kareli

148、 municipalities.Qartli Wind Farm LLC,developed by the Georgian Energy Development Fund and the GOGC,was privatised in 2019 when Georgia Capital acquired it for USD 14.4 million.Georgia also has five operational thermal power plants(TPPs):Mtkvari Energy(300 MW);two units at Tbilsresi(270 MW);G-Power

149、gas turbine station(110 MW);and the Gardabani 1 and 2 combined-cycle plants(230 MW and 255 MW).Transmission and distribution Georgian State Electrosystem JSC(GSE)is Georgias largest transmission grid owner.GSE owns and operates 4 357 km of transmission lines and 93 substations all over the country.G

150、SE neither generates electricity nor supplies it directly to consumers.It only provides electricity transmission from hydro,thermal and wind power plants and imports to power distribution companies(Telasi JSC and Energo-Pro Georgia JSC)and direct customers(large companies).The distribution companies

151、 in turn deliver the electricity to final customers,and direct customers consume it for their own purposes.Unbundling of the distribution system operators took place in spring 2021,with Telasi JSC and Energo-Pro Georgia JSC defined as the electricity distribution system operators.12 Based on Governm

152、ent of Georgia Resolution N236 of 25 May 2021,starting 1 July 2021 the Tbilisi Electricity Supply Company JSC was obligated to provide public supply services in the area of the Telasi JSC,and EP Georgia Supply was required to offer public supply services in the area of Energo-Pro Georgia LLC.The two

153、 companies have been appointed as universal service suppliers,electricity public service providers and suppliers of last resort in their respective territories.On 4 January 2021,GSE and United Energy System(UES)Sakrusenergo JSC signed an agreement transferring the right of perpetual use(perpetual le

154、ase)of power transmission lines owned by UES Sakrusenergo JSC to GSE JSC.In addition,GSE and its subsidiary Energo Trans LLC merged in January 2021.Following these structural changes,GNERC certified GSE as a transmission system operator and issued it a new transmission licence that came into force 1

155、 July 2021.12 GNERC Decisions N19/1 of 28 April 2021 and N20/2 of 13 May 2021.Georgia Energy Profile Energy security PAGE|21 I EA.CC BY 4.0.Two companies carry out electricity distribution and supply activities.Telasi JSC,which serves Tbilisi,supplied approximately 2.81 billion kWh to its consumers

156、in 2021.As of 2021,the company had 656 490 customers(37.6%residential and 62.4%non-residential),and customer services and network maintenance and operations are carried out from ten business centres situated in all administrative districts of the city.The total length of power grids in the capital i

157、s 6 390 km,including 2 422.3 km of overhead transmission lines and 3 967.76 km of underground cable.There are also 36 step-down substations of 35/6(10)kV and 110 kV,and 2 191 transformer substations of 6(10)/0.4 kV.13 Energo-Pro Georgia JSC is the largest private owner of distribution assets.It acco

158、unts for approximately 4.76 billion kWh of power consumption annually(as of 2021),and its service area extends over 58 846 km2(84%of Georgias land base)with total customers exceeding 1.2 million.It owns a 35-kV to 110-kV high-voltage electricity grid,high-voltage 110-kV and 35-kV substations,and 6(1

159、0)/0.4-kV transformers.In 2021,EP Georgia unbundled its assets and registered two separate companies.EP Generation JSC owns 15 small and medium-sized HPPs with total capacity of 469.25 MW and one gas turbine power plant with a capacity of 110 MW.14 EP Georgia Supply is a subsidiary company providing

160、 electricity supply services for up to 1.2 million customers.According to the GSEs Ten-Year Network Development Plan(TYNDP),Georgias cross-border infrastructure in 2031 will include:with Russia:500-kV,220-kV and 110-kV lines;1 600 MW of capacity with Azerbaijan:500-kV and 330-kV lines;1 400 MW of ca

161、pacity with Armenia:220-kV and 400-kV lines;700 MW of capacity with Trkiye:400-kV,220-kV,and 154-kV lines;1 400 MW of capacity.The Black Sea Transmission Network(BSTN)Project,commissioned in 2013 and connecting Georgia and Trkiye via the Black Sea,includes a 700-MW back-to-back direct current(DC)int

162、erconnection,500-kV transmission lines to Vardzia and Zekari,a 400-kV interconnection line to Meskheti and the 500-kV/400-kV/220-kV substation at Akhaltsikhe.Cross-border electricity trade,electricity demand growth and anticipated seasonal energy exports require transmission infrastructure investmen

163、ts and further development of the network.In its capacity as transmission system operator,GSE has elaborated a Ten-Year Transmission Grid Development Plan to 2031 to meet emerging demand,13 http:/www.telasi.ge/ge/about/activities.14 http:/www.energo-pro.ge/en/company/.Georgia Energy Profile Energy s

164、ecurity PAGE|22 I EA.CC BY 4.0.incorporate new generation capacity and achieve even higher reliability standards.The GSE intends to complete numerous projects during 2021-2031:the Batumi-Akhaltsikhe Project the Jvari-Khorga Project the Ksani-Stepantsminda-Mozdok Project Marneuli-Ayrum Project compon

165、ents the Jvari-Tskhaltubo-Akhaltsikhe Project the North Ring-Tskaltubo Project the Guria Project rehabilitation of the 220-kV Kolkhida-1 overhead line(OHL)the Akhaltsikhe-Tortum Project the Batumi-Muratli 1 Project the Namakhvani-Tskaltubo Project rehabilitation of the 500-kV Imereti 1 Project OHL a

166、 substation renovation project reinforcement of the Kakheti infrastructure project the Security of Supply of Tbilisi Region Project rehabilitation of the 220-kV backbone Zestaponi-Ksani Project construction of the second circuit of the 330-kV Gardabani-Agstafa Project OHL the Georgia-Russia-Azerbaij

167、an power system connection project(feasibility study)the Georgia-Romania Black Sea Submarine Cable Project(feasibility study).Cross-border projects to increase power exchange and capitalise on energy trade opportunities with neighbouring countries include:the 400-kV Akhaltsikhe-Tortum OHL and the 35

168、0-MW high-voltage direct current(HVDC)back-to-back link at Akhaltsikhe substation(SS)the 500-kV Ksani-Stepantsminda-Mozdok OHL and the 500-kV/110-kV Stepantsminda SS the 500-kV Marneuli-Airum OHL,and the 500-kV switchyard with linkage to the 220-kV switchyard at Marneuli SS the 154-kV Batumi-Muratli

169、 OHL and the 350-MW HVDC back-to-back link at Batumi SS.Georgia Energy Profile Energy security PAGE|23 I EA.CC BY 4.0.Cross-border interconnections Georgias electricity system is interconnected with those of Russia,Azerbaijan,Armenia and Trkiye.ESCO has the authority to trade electricity with neighb

170、ouring countries to balance the needs of the Georgian market,and regional trade is arranged through bilateral agreements and memorandums of understanding(MoUs).The transmission system operator ensures operations with each neighbouring country and signs relevant agreements on technical issues.In Janu

171、ary 2012,Georgia and Trkiye signed an agreement on cross-border electricity trade using the Akhaltsikhe-Borcka interconnection.The agreement sets out competitive market trading rules and identifies the terms for managing electricity imports and exports on the line.In 2015,the Khorga substation was c

172、ompleted under the Regional Power Transmission Enhancement Project funded by the Asian Development Bank,and the electricity transit corridor began operating from Russia to Armenia(daily average 30 MW)and from Azerbaijan to Trkiye(daily average 80 MW).Energy transfer between Georgia and Trkiye contin

173、ues through the 700-MW HVDC converter station and the related 500-kV and 400-kV lines.In 2009,the Azerbaijan-Georgia-Trkiye(AGT)Power Bridge project was established by the transmission system operators of the three countries(AzerEnergy,GSE and TEIAS).The energy bridge became operational in 2015,and

174、813 million kWh of electricity were transited from Azerbaijan to Trkiye already in 2016.The table below lists existing and planned electricity interconnection lines.Georgia Energy Profile Energy security PAGE|24 I EA.CC BY 4.0.Power exchange capabilities with neighbouring power systems Country Cross

175、-border line Nominal voltage(kV)Exchange TTC summer,(MW)TTC winter,(MW)Mode Russia Kavkasioni AC-3x300 500 Export 570 650 S Import 570 650 S Stepantsminda(Ksani-Stepantsminda-Mozdok)AC-3x300,2023 500 Export 1000 1000 S Import 1000 1000 S Salkhino AC-400 220 Export 50 50 I Import 150 150 I Azerbaijan

176、 Mukhranis Veli AC-3x300 500 Export 630 710 S Import 630 710 S Gardabani AC-480 330 Export 630 710 S Import 630 710 S Armenia Alaverdi AC-300 220 Export 150/100 150/100 S/I Import 150/100 150/100 S/I Marneuli(Marneuli-Ayrum)AC 3x330,2025 400 Export 700 700 B Import 700 700 B Trkiye Meskheti AC-3x500

177、 400 Export 1 050 1 050 B Tao(Akhaltsikhe-Tortum)AC-3x500,2022 Import Batumi-Muratli,2025 154 Export 350 350 B Import 350 350 B Adjara AC-400 220 Export 150/150 150/150 I/R Import 150/150 150/150 I/R Notes:S=synchronous mode.I=isolated mode.B=operation with back-to-back station.R=in reserve.Both the

178、 Tao and Meskheti 400-kV OHLs can each transfer up to 1 500 MW,but their total transfer capacity is limited by the Akhaltsikhe HVDC back-to-back units,which will have a capacity of 1 050 MW after 2025.Source:GSE(2021),Ten-Year Electricity Network Development Plan of Georgia 2021-2031.Market structur

179、e Georgias electricity sector is partially deregulated and unbundled into generation,transmission and distribution companies.Most generation and distribution assets are fully privatised.The wholesale electricity market operates predominantly under bilateral contracts,while the state-owned electricit

180、y market operator(ESCO)purchases and resells unsold power Georgia Energy Profile Energy security PAGE|25 I EA.CC BY 4.0.through bilateral contracts.ESCO is responsible for balancing and settlement according to market rules,and it exports surplus power.About 75.9%of all electricity generated is sold

181、through bilateral contracts and the rest through ESCO.The Georgian Energy Exchange was to be launched on 1 September 2022 to introduce day-ahead and intraday markets as well as markets for bilateral contracts,significantly modifying the current electricity trade structure.However,its opening has bee

182、n repeatedly postponed because of the incompleteness of market operation procedures.Georgias one transmission system operator,GSE,operates the entire transmission grid,including the 500-kV lines and interconnectors leased from Sakrusenergo through a 50/50 joint venture between the Georgian governmen

183、t and Russias Inter RAO UES.Meanwhile,Georgias two distribution system operators are:Energo-Pro Georgia JSC owned by Energo-Pro(Czech company)Telasi JSC owned 75%by Silk Road Holdings BV(and ultimately Russias Inter RAO)and 25%by Best Energy Group LLC.Electricity generators are regulated,partially r

184、egulated,or deregulated.The state-owned Enguri and Vardnili HPPs are regulated generators with GNERC tariffs.Most other HPPs have tariff caps,while small HPPs(15 MW or less)and HPPs built since August 2008 are fully deregulated and can sell their electricity at competitive prices to ESCO or any othe

185、r market participant.Georgia Energy Profile Energy system transformation PAGE|26 I EA.CC BY 4.0.Energy system transformation Energy and climate change In 1994 Georgia acceded to the UN Framework Convention on Climate Change(UNFCCC),and on 21 February 2017,the government of Georgia approved the Paris

186、 Agreement.The country also revised its national climate goals and objectives in its updated Nationally Determined Contributions(NDC)document,15 adopted in April 2021.Although Georgia faces national security threats from Russian occupation,economic and political crises,and the Covid-19 pandemic,it h

187、as set more ambitious targets16 than in its previous NDC.It remains fully committed to the Conventions objectives and acknowledges the urgent necessity for climate change mitigation and adaptation.To support the countrys sustainable development,Georgias updated NDC aims to:Unconditionally reduce nat

188、ional GHG emissions to 35%below the 1990 level by 2030.Conditional on international support,reduce GHG emissions to 50%below the 1990 level by 2030 if the world commits to limit average global temperature increase to 2C.Reduce GHG emissions to 57%below the 1990 level by 2030 if the world commits to

189、limit average global temperature increase to 1.5C.Nationally Determined Contribution targets Source:Reproduced from Georgia,Ministry of Environmental Protection and Agriculture(2021),Georgias Updated Nationally Determined Contribution.15 https:/www.euneighbours.eu/en/east/stay-informed/publications/

190、georgias-updated-nationally-determined-contribution-ndc.16 In Georgias previous NDC,the unconditional national GHG emissions reduction target for 2030 was about 24%below the 1990 level(unfccc.int).Georgia Energy Profile Energy system transformation PAGE|27 I EA.CC BY 4.0.According to Georgias latest

191、 National Greenhouse Gas Inventory,17 in 2017 net emissions(including LULUCF)amounted to 12 842 kt CO2-eq and CO2 emissions from fuel combustion were 8.7 Mt CO2(+60%from 2007).The transport sector accounted for 42%of these emissions,followed by the residential sector(20%)and industry(19%).Owing to t

192、he large share of hydro in electricity generation(80%),power generation accounts for only 12%of energy-related emissions,and the remaining 6%comes from the commercial sector.Although Georgia was responsible for just roughly 0.04%of the worlds GHG emissions in 2016,18 developing and implementing miti

193、gation and adaptation measures would synergise Georgias adaptive capacity with that of other countries and also create economic,social and environmental benefits.In 2016,the EU-Georgia Association Agreement entered into force,emphasising collaboration in climate change mitigation,adaptation to clima

194、te change,emissions trading,integration of climate change into industrial policy,and clean technology development.The Agreement underlines the inevitability of co-operation in technology transfer based on Georgias Low Emission Development Strategy(LEDS),its Nationally Appropriate Mitigation Actions(

195、NAMAs)and its Technology Needs Assessment(TNA).Several documents outline the countrys national climate policy.Georgias recently published NDC defines climate goals and overall targets to 2030,and its Climate Change Strategy and Action Plan details sector-specific targets and relevant measures.Meanwh

196、ile,the Long-Term Low Emission Development Strategy(LT LEDS)is intended as a visionary policy document with no concrete mitigation measures or action plan,and its scope extends to 2050.The National Energy and Climate Plan(NECP)outlines integrated energy and climate measures at the national level,and

197、 Georgia regularly publishes National Communications(NCs)and Biennial Update Reports(BURs)on climate change issues to meet its UNFCCC obligations(its latest fourth NC was published in April 2021).19 Georgias 2030 Climate Change Strategy and Action Plan accompanies the updated NDC to identify measure

198、s to meet unconditional and conditional commitments and mitigation targets in the transport,buildings,energy generation and transmission,agriculture,industry,waste management and forestry sectors.NDCs need to be updated every five years,and countries are expected to set more ambitious goals and targ

199、ets each time.Under the Paris Agreement,all countries agreed on an enhanced transparency framework for action and support,including clarity and tracking of progress in achieving 17 National Greenhouse Gas Inventory.18 In 2016,Georgias national GHG emissions were 18 534 kt CO2-eq(excluding LULUCF,FNC

200、),while global GHG emissions were 49.4 billion tonnes of CO2-eq(https:/ourworldindata.org/ghg-emissions-by-sector).19 https:/unfccc.int/documents/271341.Georgia Energy Profile Energy system transformation PAGE|28 I EA.CC BY 4.0.the NDCs.Unfortunately,Georgia has not yet developed a national adaptati

201、on plan,but its updated NDC identifies several adaptation and vulnerability assessment objectives:Assess the impact of climate change on the coastline,glaciers,forest lands,mountain ecosystems and ecosystem services.Assess the impact of climate change on the availability of groundwater and surface w

202、ater resources for sustainable use in different economic sectors.Assess and strengthen the adaptive capacity of agricultural production to ensure food security.Assess the effects of climate change on human health and take measures to mitigate damage caused by extreme weather events.Strengthen the ad

203、aptive capacity of the most vulnerable winter and coastal resorts.Furthermore,in 2017 Georgia began to develop national indicators and targets for Sustainable Development Goals,which are closely related to GHG emissions reductions.Climate change policy planning happens not only nationally,but also a

204、t the municipal and city levels.Indeed,26 Georgian cities and municipalities have joined the Covenant of Mayors initiative to reduce GHG emissions to 20%below the 1990 level by 2020 and to 40%below by 2030.Signatories are obligated to submit Sustainable Energy and Climate Action Plans(SECAPs)outlini

205、ng the key actions they plan to undertake up to 2030.Although Georgia has made some progress in developing climate change policy,challenges and barriers impede achievement of its UNFCCC and Paris Agreement commitments:qualified people to staff national and municipal public institutions responsible f

206、or climate change policies are in short supply;the states financial resources are insufficient to implement climate change mitigation and adaptation measures;there is a dearth of climate change-related research,academic institutions and educational courses and programmes;public demand for climate pr

207、otection action is lacking because public awareness is limited;and the country needs an integrated database of projects contributing to climate change mitigation or adaptation.All these obstacles have caused the level and pace of Georgias development and implementation of climate-friendly and sustai

208、nable technologies to be low.Energy and environmental protection As all projects to develop renewable or fossil energy sources and establish transmission infrastructure strongly impact the environment,it is essential for Georgia to have sound procedures and proper protective mechanisms in place.In t

209、his respect,it has implemented several important reforms in recent years,and its current legislation is largely aligned with EU legislation and directives.Georgia Energy Profile Energy system transformation PAGE|29 I EA.CC BY 4.0.For instance,the country adopted an Environmental Assessment Code in 2

210、017,with its main section implemented in 2018.Its updated legal framework for environmental impact assessments,including key requirements and procedures for environmental monitoring of the energy sector,is based on EU directives for environmental impact assessments and strategic environmental assess

211、ments:Directive 2011/92/EU on the Assessment of the Effects of Certain Public and Private Projects on the Environment Directive 2001/42/EC on the Assessment of the Effects of Certain Plans and Programmes on the Environment Directive 2003/4/EC on Public Access to Environmental Information Directive 2

212、003/35/EC Providing for Public Participation in Respect of the Drawing Up of Certain Plans and Programmes Relating to the Environment Directive 2004/35/CE on Environmental Liability Regarding the Prevention and Remedying of Environmental Damage.Georgias Environmental Assessment Code is also based on

213、 the principles of the Convention on Environmental Impact Assessment in a Transboundary Context(the Espoo Convention)and its Protocol on Strategic Environmental Assessment and the Aarhus Convention.This new legal framework defines how to assess the impact individual energy projects will have on the

214、natural and social environment,and it establishes appropriate procedures,the scope of public involvement,the decision-making process and other related issues.The law delineates institutional roles and the scope of authority required for appropriate decisions/findings.Before adopting its Environmenta

215、l Assessment Code,Georgia had already transposed several EU directives into its legislation:Directive 1999/32/EC of 26 April 1999 Relating to a Reduction in the Sulphur Content of Certain Liquid Fuels and Amending Directive 93/12/EEC Directive 2010/75/EU of 24 November 2010 on Industrial Emissions D

216、irective 2001/80/EC of 23 October 2001 on the Limitation of Emissions of Certain Pollutants into the Air from Large Combustion Plants Article 4(2)of Directive 79/409/EEC of 2 April 1979 on the Conservation of Wild Birds.Despite this new legal framework,environmental concerns relating to HPP developm

217、ents and the construction of high-voltage transmission lines in the mountains of Georgia have yet to be addressed.This is partly due to challenges in the practical implementation of procedures,specifically:Georgia Energy Profile Energy system transformation PAGE|30 I EA.CC BY 4.0.The lax observance

218、and slow implementation of administrative procedures.A lack of methodological clarity and coverage,including cost-benefit analyses,ecological minimum river flow,etc.Low public awareness and participation due to inadequate access to information.Aberrant public perceptions and awareness resulting from

219、 exposure to biased and incorrect information.Low availability and poor quality of geographic information systems(GISs)to acquire proper environmental information.Poor indoor air quality caused by inefficient combustion of wet wood fuel.Nevertheless,significant progress has been made in the policies

220、 and legal framework for air quality improvement:automatic air monitoring systems have been upgraded;a technical inspection system for vehicles has been introduced;and normative requirements for gasoline and diesel quality have been strengthened.Georgia also introduced an obligation for continuous i

221、nstrumental monitoring by industrial enterprises,including TPPs,in line with Directive 2010/75/EU of 24 November 2010 of the European Parliament and the Council.Furthermore,it has expanded the countrys natural gas networks and reduced the use of firewood significantly.In fact,the share of firewood i

222、n Georgias total energy consumption had fallen to 4.8%or 1.3 million m3 in 2019,down from 2.1 million m3 in 2015.The state is also planning measures to replace low-efficiency stoves that are harmful to public health.To improve environmental governance,Georgia is planning to:Optimise the administrati

223、ve process for environmental assessments.Perfect and consolidate geo-informational systems and databases.Improve air quality monitoring systems.Promote the use of modern,efficient wood stoves.Energy efficiency The MoESD and its Division of Energy Efficiency and Alternative Energy Resources are the k

224、ey policy-making entities supporting the development of energy-efficient technologies in Georgia.The MoESD develops,implements and co-ordinates country-relevant sustainability actions;it also supports and co-ordinates energy efficiency in the industry,construction,transport and service sectors,and c

225、reates measures that favour a green economy.Georgia has implemented energy efficiency legislation to transpose the Energy Community acquis on energy efficiency.The Law on Energy Efficiency,prepared according to EU Energy Efficiency Directive 2012/27/EU,aims to:Georgia Energy Profile Energy system tr

226、ansformation PAGE|31 I EA.CC BY 4.0.Establish a common framework to promote and implement energy efficiency within the country.Improve energy savings,increase energy supply security,enhance energy independence,and remove barriers to energy efficiency development.Establish a process to develop a nati

227、onal energy efficiency target through an energy efficiency action plan,which would also outline measures to meet the target.Provide a procedure to adopt the energy efficiency action plan.Institute an energy efficiency obligation scheme and/or alternative policy measures to achieve energy savings.Ens

228、ure co-ordination among parties to control,monitor and supervise implementation of the countrys energy efficiency policy.The Law on Energy Efficiency of Buildings was prepared according to EU Energy Performance of Buildings Directive 2010/31/EU.Several secondary acts have already been drafted but no

229、t finalised to implement this law,which will:Set buildings sector regulations to ensure the improved energy efficiency of existing and new buildings.Introduce minimum energy performance standards and the obligation to adopt a methodology for calculating the energy performance of buildings.Include pr

230、ovisions to establish energy performance certification and the inspection of heating and cooling equipment.Introduce sanctions for breaching the provisions of this law.Georgia adopted a Law on Energy Labelling on 20 December 2019.It transposes Directive 2010/30/EU,and its purpose is to provide stand

231、ard and additional information about the consumption of energy and other resources,as well as consumption indicators for energy-consuming products in Georgia,which will allow consumers to assess their use of energy and other resources.The government also approved important secondary legislation:a Na

232、tional Methodology for Calculating the Energy Efficiency of Buildings,and Minimum Requirements for Energy Efficiency of Buildings,Parts of Buildings or Elements of Buildings.To implement the primary legislation,a number of bylaws are being developed and adopted,including 19 legislative acts related

233、to the Law on Energy Efficiency,11 legislative acts on the Law on Energy Efficiency of Buildings and 10 legislative acts concerning the Law on Energy Labelling.Work is also under way on Georgias Law on Eco-design.The MoESD has developed a National Energy and Climate Plan(NECP)with 27 horizontal and

234、sectoral measures in buildings,industry,transport,electricity and gas Georgia Energy Profile Energy system transformation PAGE|32 I EA.CC BY 4.0.production and supply to be implemented by 2030.After rounds of public discussions and adjustments,the finalised NECP will be approved by the parliament an

235、d submitted to the Energy Community Secretariat.The NECPs wide-ranging measures include:Building certification and minimum energy efficiency standards;annual energy efficiency renovations of 1%of administrative buildings;and an energy efficiency information system for public buildings.Educational pr

236、ogrammes and certification mechanisms to train specialists and support the energy service market.Energy-efficient procurement in the public sector.Awareness-raising programmes and preparation of energy managers.A standards and labelling system for energy-consuming equipment.Support for efficient lig

237、hting,including the replacement of incandescent lights.Implementation of energy audits and energy management systems in industry.A wide spectrum of energy efficiency measures in transport,including:Public transport infrastructure improvement and a switch to sustainable transport systems Fuel taxatio

238、n to encourage lower consumption Tax benefits for hybrid and electric vehicles Inspection and standards for transport vehicles(EUR4/EUR5)Urban planning measures,including Tbilisis Green Transport Policy Incentives for railway and other public transport use.In the energy sector:New CCGT power plants

239、to replace simple-cycle units Transmission network improvements and transboundary co-operation Loss reduction in networks through incentive-based regulation.The government encourages municipal activities within the framework of the Covenant of Mayors.Of the 26 cities and towns that have joined,most

240、have already prepared energy action plans.Concrete energy efficiency targets for 2030 will be fixed in the final draft of the NECP.Renewable energy The share of renewable energy in Georgias energy supply in 2020 was 19.5%,of which 15%was electricity produced by hydroelectric plants and 5%was biomass

241、-based(i.e.firewood and agricultural waste used for heating).As Georgia lacks significant fossil fuel Georgia Energy Profile Energy system transformation PAGE|33 I EA.CC BY 4.0.reserves,it relies primarily on renewable energy(mainly hydropower)for energy security.As of 2021,the share of renewable en

242、ergy in electricity production was 81%,provided by hydropower and one wind farm.Hydropower Of Georgias 4 533 MW of installed power generation capacity,2 381 MW are reservoir hydropower plants and 942 MW are run-of-river facilities.Small power plants(less than 15 MW of capacity)contribute 282 MW.In 2

243、021,electricity production totalled 12 645 MWh,with reservoir plants generating 5 318.1 MWh and seasonal run-of-river plants contributing 4 022.1 MWh.Small power plants generated 841.9 MWh of clean energy.In 2021,seven large HPPs used for seasonal regulation of electricity production generated 42%of

244、 the countrys total generation:20 Engurhesi(1 300 MW)state-owned Vardnilhesi 1(220 MW)state-owned Khrami 1(113 MW)owned by Inter RAO Khrami 2(110 MW)owned by Inter RAO Shaorhesi(38 MW)owned by JSC Energo-Pro Georgia Dzevrulhesi(80 MW)owned by JSC Energo-Pro Georgia Zhinvalhesi(130 MW)owned by JSC Ge

245、orgia Capital.The technically and economically feasible potential of Georgias hydropower resources is 2 286 projects,offering generation of 30 TWh/year at a construction cost of less than USD 0.35/kWh.Along with providing additional energy,hydropower development would allow Georgia to integrate grea

246、ter volumes of solar and wind power and also regulate waterflow in periods of extreme runoff and for various needs,thereby contributing to climate change mitigation and adaptation.However,as hydropower development is complex,realising its full potential will require thorough study and proper plannin

247、g.Major challenges impeding hydropower development in Georgia include ineffective implementation of environmental impact assessments and public communication procedures(resulting in public opposition and bias against infrastructure projects);an absence of clear and transparent procedures for public-

248、private partnerships with minimum administrative burden;and a lack of qualified strategic investors with adequate financial and technical resources.20 GNERC(2022),Energy data.Georgia Energy Profile Energy system transformation PAGE|34 I EA.CC BY 4.0.Solar and wind Reliable and comprehensive assessme

249、nts of Georgias solar and wind potential still need to be conducted,involving an accurate evaluation of resources and geospatial analysis using a GIS.Wind potential has been roughly estimated at 1 500 MW of capacity,for 4 TWh of average annual electricity generation.Concerning solar energy,annual su

250、nshine days range from 250 to 280(1 900 to 2 200 hours)in most regions of the country,indicating considerable solar PV and solar thermal potential.The medium-term assessment for wind and solar power potential is based mostly on network and balancing considerations.21 Georgias electricity transmissio

251、n system operator(GSE)estimated that the countrys power system would be able to accommodate 333 MW of wind and 130 MW of solar capacity during 2020-2022.However,adding more reservoir HPPs to the system would permit the integration of 1 332 MW of wind and 520 MW of solar.As of April 2022,Georgia had

252、397 solar PV installations(each below 500 kW)for a total capacity of 20.4 MW.In addition,the Ministry of Infrastructure initiated and is financing a GEL 2-million project to install autonomous micro-PV plants in sparsely populated,hard-to-reach villages in mountainous regions.At a larger scale,the g

253、overnment has signed 31 MoUs for solar power plants.Total installed capacity is 146 MW,with expected annual electricity generation amounting to 200 million kWh.It has also signed 13 MoUs for wind power plant projects,with total capacity of 740 MW and expected generation of 2.65 billion kWh.Construct

254、ion of an 8-MW project has begun.Georgias only wind power plant(Qartli,20.7 MW)was commissioned in 2016 and had a high(46%)capacity factor in 2021.Geothermal Georgia has over 250 natural and artificial geothermal sources in 44 geothermal fields,more than 80%of which are in western Georgia.Geothermal

255、 water,used mainly for simple household or agricultural(greenhouse)purposes,varies in temperature from 30C to 110C.The share of geothermal energy in the countrys energy balance is insignificant.The Zugdidi-Tsaishi geothermal area has nine productive and seven reinjection wells,and three observation

256、bore-hole wells considered to be exploitable.In addition,two deposits are known to contain geothermal water,from which up to 30 000 m3 could be 21 NVE(2021),Hydro Power Potential in Georgia.Georgia Energy Profile Energy system transformation PAGE|35 I EA.CC BY 4.0.obtained for reinjection twice a da

257、y.Poti,Georgias main port city,could be supplied with geothermal water from the Kvaloni and Menjisi water deposits.Biomass Woody biomass has been one of Georgias main sources of heating for years,especially in rural regions.However,with greater access to gas and a reduction in available forest resou

258、rces,firewood consumption has decreased significantly.Bioenergy supplies in 2019 amounted to 10 279 TJ(1.3 million m3)or 4.8%of total energy consumption,mainly consisting of woody biomass.A small amount of solid modern biofuel(pellets and briquettes)is produced from forestry and agricultural waste.T

259、he sustainable regeneration limit of Georgias forests is estimated at 400 000-500 000 m3,meaning that fuelwood is consumed at the expense of forest degradation.Under the ongoing forestry reform,the forestry agency has begun to organise business yards to provide people with legal wood fuel supplies.T

260、his system is intended to replace the poorly controlled“social logging”that led to forest degradation.To further reduce pressure on forests,it is necessary to develop alternative energy solutions to meet heating demand with sustainable bioenergy.For instance,inefficient wood stoves should be replace

261、d with efficient ones,and advanced solid biofuels could be made from agricultural waste directly or used in the form of pellets and briquettes.22 Waste As Georgia does not currently use waste for power and heat generation,waste management legislation is needed to encourage the collection and use of

262、biological waste for energy purposes.Helpfully,a new,modern landfill adhering to EU requirements is planned in the Autonomous Republic of Adjara.While there are plans to install a landfill gas capture facility to use this gas for energy,project construction has yet to begin.Institutions,legislation

263、and policies As a structural unit of the MoESDs Energy Reforms and International Relations Department,the Division of Energy Efficiency and Renewable Energy Policy Promotion implements state policies to support renewable energy resource development and the deployment of energy-efficient technologies

264、.In 2010,the government established the Georgian Energy Development Fund(GEDF)JSC to realise the countrys energy potential by mobilising funds to develop and 22 IEA(2020),Sustainable Bioenergy for Georgia:A Roadmap.Georgia Energy Profile Energy system transformation PAGE|36 I EA.CC BY 4.0.implement

265、projects.The Fund identifies prospective renewable energy projects and promotes their development through preliminary screenings,feasibility assessments and environmental impact assessments;it then finds investors and secures their interest in the projects.Furthermore,the Law on the Promotion of Ene

266、rgy Production and Use from Renewable Sources was adopted in December 2019.23 To create an investor-friendly environment,the government offers attractive export markets,free third-party access to the grid and an efficient legal and regulatory framework for greenfield projects based on the build-own-

267、operate principle.Liberal tax legislation,double taxation avoidance agreements with Organisation for Economic Co-operation and Development(OECD)member countries,a rapidly expandable export market,simplified procedures,and a strong commitment to renewable energy source development also create a favou

268、rable business climate for potential investors.To further encourage renewable energy development,government of Georgia Resolution No.403 of 2 July 2020 approved a scheme to support the production and use of energy from renewable sources.It provides for payment of a market premium to renewable energy

269、 plants(hydro,wind and solar)with an installed capacity of more than 5 MW.Renewable energy project development in Georgia is based on the Law on Public-Private Partnerships24 and Resolution No.515 of the Government of Georgia(October 2018).As of April 2022,43 renewable energy projects were being dev

270、eloped based on the Law on Public-Private Partnerships,with 4 wind power projects at the final phase of implementation.In 2015,GNERC passed a regulation introducing net metering for small-scale power plants(i.e.installed capacity of less than 500 kW)owned by retail consumers.Customers participating

271、in this scheme are eligible to transfer excess energy to the grid.Electricity generated in surplus of self-consumption needs can be injected into the grid and then resupplied upon request later for self-consumption;otherwise,excess electricity can be sold to distribution companies at the weighted av

272、erage purchase price.As part of Georgias electricity market reform,a day-ahead market and a market for system services are planned.While the planned launch for September 2022 was postponed,the market design is being finalised.23 https:/matsne.gov.ge/ka/document/view/4737753?publication=0(available i

273、n Georgian only).24 https:/matsne.gov.ge/document/view/4193442?publication=2.Georgia Energy Profile Energy system transformation PAGE|37 I EA.CC BY 4.0.Meanwhile,the MoESD is finalising the National Energy Policy and the NECP,in which renewable energy sources are central for decarbonisation and ener

274、gy security.The draft document fixes the binding target for renewable energy in 2030 at 27.4%of total final consumption.According to the draft,in 2022-2030 the state plans to:Integrate renewable energy into buildings and offer local municipality support to install renewable energy systems in new bui

275、ldings.Introduce renewable energy requirements for new and capital-renovated buildings in 2025,and for public buildings in 2022.Deploy technologies for sustainable use of biomass,ensuring at least 85%efficiency in residential and commercial buildings and at least 70%efficiency in enterprises.MoESD c

276、o-operation under the forestry reform will promote the use of only sustainably harvested firewood.Promote the use of modern solid biofuels(briquettes and pellets)made from forestry and agricultural residues.Implement EU-standard environmental labelling and energy labelling,and other technical standa

277、rd systems for solar water heaters to promote the use of certified equipment and systems.Create a training and certification system within the national qualification framework for installers of small biomass boilers,solar PV systems,heat pumps and other renewable energy technologies.Initiate informa

278、tional,awareness-raising and training programmes involving local and regional government bodies to inform residents about the advantages and practicalities of developing and using renewable energy.Co-operate internationally to develop joint projects and statistical transfer schemes.Introduce a singl

279、e-window principle for local and foreign investors,and co-ordinate co-operation of the various state structures.Technology research,development,demonstration and deployment Georgian RDD&D in general is linked to its Socio-Economic Development Strategy to 2020,but as the countrys science system has o

280、ver 80 non-prioritised research directions,there are no special energy-related RDD&D provisions in the Development Strategy or in any strategic document related to science and innovation.However,recent reforms have increased support for RDD&D in general,the key institutions providing funding being t

281、he Shota Rustaveli National Science Foundation(SRNSF),which supports projects at the initial stages of development,and Georgias Innovation and Technology Agency(GITA),which finances globally scalable start-up projects.Georgia Energy Profile Energy system transformation PAGE|38 I EA.CC BY 4.0.Several

282、 laws regulate management of Georgias science,technology and innovation system:The Law on Science,Technologies and Their Development(1994)The Law on Grants(1996)The Law on Higher Education(2004)The Law on Education Quality Improvement(2010)The Law on Innovations(2016).No specific institution has bee

283、n designed to support energy RDD&D,so energy-related research and innovation projects are implemented within the general RDD&D framework.Although government spending on all RDD&D has increased significantly in recent years,its share in national GDP remains low compared with EU countries(see Figure).

284、Georgias RDD&D intensity the ratio of government RDD&D spending to GDP was 0.23%in 2019,while the average rate for EU countries is 2.3%(2020 data).Furthermore,both the countrys financing of RDD&D and its RDD&D intensity have fallen since 2016.Government of Georgia spending on RDD&D Source:Based on d

285、ata from Geostat and the Georgia State Treasury.During 2017-2020,Georgia spent GEL 3.3 million on energy-related research,development and innovation through GITA and the Shota Rustaveli National Science Foundation.200182019Government spending on researchand innovation(million GEL)87.5120.

286、0103.9113.4115.5Share of government spending onresearch and innovation in GDP0.26%0.33%0.25%0.25%0.23%0.00%0.05%0.10%0.15%0.20%0.25%0.30%0.35%0.40%(15.0)5.0 25.0 45.0 65.0 85.0 105.0 125.0million GELGeorgia Energy Profile Energy system transformation PAGE|39 I EA.CC BY 4.0.Public funding for RDD&D i

287、n Georgia comes from several sources,and priority-setting and decision making on funding is decentralised.Project-based funding comes from the SRNSF,GITA and Enterprise Georgia,and funding for research institutes comes mainly from the Ministry of Science,Education,Culture and Sport(MES).The MES allo

288、cates funding to the universities,which then decide how to redistribute the money to research units/institutes.The SRNSF also provides resources for maintaining and upgrading research facilities and infrastructure.In practice,there is no baseline funding for research in Georgia since MES allocations

289、 are mostly used to cover researchers salaries(even though salaries in research and science are well below the countrys average wage,especially for beginner researchers).It is difficult to evaluate private sector spending on energy RDD&D because reliable data and statistics are lacking.Experts estim

290、ate that funding from local industry is quite small,and while there is some international funding,it is attracted in an ad-hoc manner.The data are thus too scattered to present a complete picture of total funding for energy RDD&D.According to Geostat,in 2018 the private sector spent GEL 600 000 on R

291、DD&D,and in 2019 it spent GEL 1 181 000.In April 2016,Georgias MES signed an association agreement with the EU Framework Programme for Research and Innovation,Horizon 2020(now Horizon Europe).Becoming an Associated Country means Georgian research organisations can participate in Horizon Europes call

292、s for projects with the same rights as organisations from EU member states.However,due to the high level of competition and Georgias lack of experience,shortage of qualified research institutions and other country-specific barriers,the participation rate of Georgian organisations is quite low.In the

293、 previous framework programme(Horizon 2020),Georgias participation was ranked 12th out of 16 Associated Countries.Of the total EUR 8.7 million Georgian organisations received from participating in 85 Horizon 2020-financed projects,EUR 1 million was dedicated to energy-and climate-related projects.In

294、 addition,as a Near Neighbour Country(NNC),Georgia is also eligible to participate in the European Cooperation in Science and Technology(COST)programme.Also in the interests of RDD&D,the SRNSF co-operates with Elsevier,which provides access to the electronic journals and data of 21 independent publi

295、c research institutes and research universities,and the SRNSF pays Georgias annual membership fees for the European Organization for Nuclear Research(CERN)and the Dubna Joint Institute for Nuclear Research.Georgia is also eligible for the North Atlantic Treaty Organization(NATO)Science for Peace and

296、 Security programme.This publication has been produced with the financial assistance of the European Union and is part of the EU4Energy programme.This publication reflects the views of the IEA Secretariat but does not necessarily reflect those of the IEAs individual member countries or of the Europe

297、an Union.The work does not constitute professional advice on any specific issue or situation.The IEA makes no representation or warranty,express or implied,in respect of the works contents(including its completeness or accuracy)and shall not be responsible for any use of,or reliance on,the work.EU4E

298、nergy is a collaboration between the IEA,the European Union,Focus Countries and other implementing parties,designed to support the aspirations of Focus Countries to implement sustainable energy policies and foster cooperative energy sector development at the regional level.Subject to the IEAs Notice

299、 for CC-licenced Content,this work is licenced under a Creative Commons Attribution 4.0 International Licence.This document and any map included herein are without prejudice to the status of or sovereignty over any territory,to the delimitation of international frontiers and boundaries and to the name of any territory,city or area.IEA Publications International Energy Agency Website:www.iea.org Contact information:www.iea.org/contact Typeset in France by IEA-March 2023Cover design:IEA