Georgia is one of the most promising countries for hydroelectric power generation in Europe, offering a wealth of opportunities for investors. There are more than 26,000 rivers in the country and 300 are deemed to have significant hydropower potential, with the ability to generate in excess of 15,000 MW. This is more than five times the capacity of existing hydropower plants in Georgia.
Meanwhile, electricity consumption in Georgia has been growing by an average of 4% annually over the past 7 years, reaching 13.1 TWh in 2017. The World Bank expects the Georgian economy to grow by 4.6% on average during 2018-2020. If such an outlook is maintained, electricity consumption growth may surpass the levels seen over the last seven years.
As a result of this consistent growth, the energy sector has received an average of 12% of total FDI over the past 5 years, according to data from the National Statistics Office of Georgia.
GCF’s energy investments focus on greenfield and brownfield sites, as well as medium and large-scale hydropower generation investment opportunities. As the market develops, the Fund will consider additional renewable infrastructure investment opportunities.
The Fund will focus on investing in the following categories of projects:
Medium and large scale hydro projects
Above 200 MW