MINISTRY OF ECONOMY
AND SUSTAINABLE DEVELOPMENT
OF GEORGIA

First Vice Prime Minister, Minister of Economy and Sustainable Development Levan Davitashvili, while delivering a speech at the panel session of the Istanbul Energy Ministerial Forum, focused on global energy challenges and the importance of regional cooperation in solving them.

As the First Vice Prime Minister stated, regional cooperation is important for ensuring energy sustainability and strengthening energy security. He emphasized the development of cross-border transmission infrastructure and the promotion of energy trade between the countries.

“We are already working on harmonizing relevant legislation among the countries of the region, which will also facilitate energy trade in the region. The balance between energy supply and energy availability is a fundamental factor in the competitiveness of our economy, which directly affects the welfare of our population and countries,” – Levan Davitashvili said.

The First Vice Prime Minister spoke in details about the government’s policy of promoting electricity production from renewable sources. “It may be ambitious, but we consider the goal we have set - to double our installed energy capacity by 2030 - quite realistic. This is important for maintaining our high rate of economic growth. Over the past 3-4 years, we have almost doubled our economy. Our economic growth rate this year is 9,8%, which is the result of the important structural reforms we have implemented and is the foundation of our country's economic growth," – Levan Davitashvili noted.

The First Vice Prime Minister focused on effective schemes for promoting investments in the energy sector, including capacity auctions and the so-called CFD pricing. “We have a very favorable business environment with minimal bureaucracy and various mechanisms for encouraging investors in the energy sector. I think we will be able to grow our energy sector. There are 26 000 mountain rivers in Georgia, and accordingly, there is a huge potential for hydropower production, and at this stage even 20% of it is not used, which is far below the average European indicator. Therefore, our goal is to increase the number of hydropower plants and expand the use of wind and solar energy. I think wind and solar energy production will develop significantly over the next 4-5 years. However, we are aware of the need for thermal power plants before the full transition to green energy and are implementing relevant projects,” – Levan Davitashvili added.

The First Vice Prime Minister also spoke about the large investment projects, which are being implemented through the so-called PPP (Public Private Partnership) mechanism, which is fully consistent with the EU directives. “At the same time, we understand the great importance of connectivity and that is why we are participants in all these important initiatives and will continue to provide them with maximum support,” – Levan Davitashvili summarized.

At the ministerial panel session, the ministers of Turkey, Azerbaijan, Bulgaria, Hungary, Libya, Moldova, Serbia and Uzbekistan also spoke about the ongoing processes in the energy sector in the region.