TBILISI, October 21 – Georgia has scrapped plans for dozens of hydro, wind, and solar power plants after finding that most existed only on paper and had no realistic chance of being built.
The government’s October 13 decree canceled 1,746 megawatts worth of planned capacity from unfinished or unstarted projects that never advanced beyond early-stage memorandums. According to the Energy Ministry, the decision followed a three-month review that examined each project’s technical and financial feasibility.
“These projects were only on paper. Their implementation was impossible,” Maia Melikidze, executive director of the Georgian Renewable Energy Development Association (GREDA), told BPN. “Many had been repeatedly delayed for years, blocking capacity and preventing new investments.”
Georgia currently has about 4,600 MW of installed electricity capacity but faces applications totaling roughly 11,000 MW through direct-negotiation proposals, far beyond what the national grid could handle, Melikidze noted. “It was essential to free up reserved capacity that was never going to be built,” she said.
For years, investors have complained that speculative or inactive energy projects occupied the queue for state contracts, discouraging serious investment in renewables. Georgia remains a net importer of electricity, with consumption growing by 3-5 percent annually.
Melikidze said the ministry’s decision is meant to reset the sector and attract “real, highly qualified investors” capable of delivering functioning plants that meet modern environmental and financial standards. “The only way forward is to work with experienced investors who have the knowledge, resources, and commitment to build,” she said.
GREDA’s chief emphasized that such investors are also more likely to minimize environmental impacts and ensure local communities benefit from new power projects. “High-quality investors communicate with residents from the start,” Melikidze said. “Their expertise and financial stability help guarantee that people on the ground also see the benefits.”
The canceled projects were part of Georgia’s long-running effort to expand renewable energy and reduce dependence on imports from neighboring countries. But loose vetting criteria and long delays left dozens of proposed hydro and solar ventures stuck in limbo, reserving transmission capacity and distorting the investment landscape.
The government’s new approach, according to GREDA, will favor investors with strong technical and environmental credentials, proven track records, and sufficient financial backing. Melikidze described it as a “tougher but necessary” shift after years of lax oversight.
“There were two options,” she said. “One was to let the transition period pass, but it seems that there is no time for that anymore. A stricter policy has been implemented, where projects that existed only on paper have been canceled.” (BPN.)
