TBILISI, January 19 – Georgia’s energy regulator has approved new fees for small hydropower plants that use irrigation canals, marking a change that will affect both energy producers and farmers across the country.
The decision was announced by Georgian National Energy and Water Supply Regulatory Commission, also known as GNERC or Semek. The new rules require small hydropower plants built on melioration and irrigation systems to pay for the water they use.
Under the approved formula, the water fee is based on electricity market prices. The charge is calculated as 10 percent of total power generation multiplied by the average of the electricity balancing price and the price at which Electricity System Commercial Operator buys electricity from small power plants.
GNERC says the new fee will not affect electricity prices. According to the regulator, small hydropower plants can already sell electricity at market prices or directly to the system operator, and the added water cost is not expected to significantly change their expenses. The regulator also noted that electricity produced by these plants makes up only a small share of Georgia’s total power generation.
The new tariffs were approved on December 29, 2025, and will come into force on April 1, 2026, BMG reports.
The same decision also sets new irrigation water tariffs for farmers. Members of water user organizations who pay based on meter readings will pay 3.5 tetri (1.3 US cent) per cubic meter. Individual farmers not part of such groups will pay 8 tetri (3 US cents) per cubic meter.
For farmers who pay by land area instead of volume, the cost of one irrigation for annual crops will be 116.50 lari (43 USD) per hectare, including VAT. For perennial crops, the fee will be 102 lari (38 USD) per hectare.
