Editing Economy of Georgia (country) (section)

=== Energy ===
{{main|Energy in Georgia (country)}}
[[Image:Enguri Dam, Georgia.jpg|thumb|250px|[[Enguri Dam|Enguri hydropower plant]], completed in 1987]]
In recent years Georgia has fully deregulated its electricity sector, and now there is free and open access to the market.

Georgia has a sizable hydroelectric capacity, a factor that has become an increasingly important component of its energy supplies and policies. The country's topography and abundance of hydro resources give it serious potential to dominate hydroelectric markets in the Caucasus region. The [[Ministry of Energy (Georgia)|Georgian Ministry of Energy]] estimates that there are around 26,000 rivers within Georgian territory, with approximately 300 of those rivers being significant in terms of energy production. The Ministry also claims that current projects for hydroelectric power plants total around US$2.4 billion.<ref>Projected Hydropower Plants in Georgia  http://www.minenergy.gov.ge/index.php?m=305 {{dead link|date=September 2017 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> [[Alexander Khetaguri]], the former Georgian Minister of Energy, proposed new hydroelectric projects worth well over 22,000 megawatts of capacity, which would cost over US$40 billion and would be privately funded. These projects alone would transform Georgia into the world's second-largest hydropower producer.{{Citation needed|date=July 2012}}<ref>Georgia Looks to Tap Hydropower Potential {{cite web |url=http://main.omanobserver.om/node/25098 |title=Georgia looks to tap hydropower potential &#124; Oman Observer |access-date=2012-04-03 |url-status=dead |archive-url=https://archive.today/20120714143339/http://main.omanobserver.om/node/25098 |archive-date=2012-07-14 }}</ref>

In 2007, Georgia generated 8.34 billion kilowatt-hours of electricity while consuming 8.15 billion kWh.<ref>{{cite web|url=https://www.cia.gov/the-world-factbook/countries/georgia/|title=The World Factbook|work=cia.gov|date=22 September 2021}}</ref> Most of Georgia's electricity generation comes from [[Hydroelectricity|hydroelectric]] facilities. In 2005, the country generated 6.17 billion kWh of hydropower, or 86% of total electricity generation.<ref>{{cite web
 |publisher   = [[Energy Information Administration]]
 |title       = International Energy Annual 2005nbxn
 |url         = http://www.eia.doe.gov/iea/elec.html
 |date        = 2007-09-13
 |access-date  = 2008-09-22
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20080514152640/http://www.eia.doe.gov/iea/elec.html
 |archive-date = 2008-05-14
}}
</ref> In 2006, rapid growth in hydroelectricity output (by 27%) was matched by equally strong growth in thermal electricity (by 28%).<ref>{{cite web|url=http://www.infoplease.com/country/profiles/georgia.html |title=Georgia |publisher=Infoplease.com |access-date=2013-04-22}}</ref> Since then, the share of hydropower has grown even bigger, when [[Inguri]] power plant reached full capacity in November 2007.{{citation needed|date=March 2023}} In addition to state-owned Inguri, which has an installed capacity of 1,300 megawatts, Georgia's hydroelectric infrastructure consists of many small private plants.<ref>{{cite web |url=http://www.minenergy.gov.ge/index.php?m=349 |title=Ministry of Energy of Georgia |access-date=2008-09-22 |url-status=dead |archive-url=https://web.archive.org/web/20110721030940/http://www.minenergy.gov.ge/index.php?m=349 |archive-date=2011-07-21 }}, Ministry of Energy of Georgia</ref>

In recent years, Georgia became a major exporter of electricity in the region, exporting 1.3 billion [[KWh]] in 2010. [[Hydropower plant|Hydropower stations]] of Georgia produce 80-85% of the electricity utilized within the country, the remaining 15–20% is produced by [[thermal power station]]s. According to [[Ministry of Energy (Georgia)|Ministry of Energy and Natural Resources]], so far, Georgia has been exploiting only 18% of its hydro resource potential.<ref>{{cite news |url=http://world.eizvestia.com/full/turciya-i-gruziya-pokroyutsya-dambami-i-ges |title=Турция и Грузия покроются дамбами и ГЭС |trans-title=Turkey and Georgia will be covered with dams and hydroelectric plants |publisher=Economicheskiye Izvestiya |author=Dmitry Bondarenko |date=2011-02-08 |access-date=2011-03-30 |archive-url=https://web.archive.org/web/20110902152730/http://world.eizvestia.com/full/turciya-i-gruziya-pokroyutsya-dambami-i-ges |archive-date=2011-09-02 |url-status=dead }}</ref>

Georgia's reliance on hydropower leaves the country vulnerable to climatic fluctuations, which requires imports to meet seasonal shortages, but also opens the possibility of exports during wetter conditions. Georgia still has the potential to increase hydro-generated power, through refurbishing existing facilities, as well as constructing new hydropower plants.

One of the more difficult realities facing many of the former Soviet republics was the loss of Soviet-subsidized fuel and utility transfers. Prior to 2004, Georgia's transmission network was in critical condition, with electricity blackouts being common throughout the country. In response to mounting pressures, the Georgian government initiated a series of legislative reforms in 1998 and 1999 to begin to develop the power sector and electricity markets. While measures were taken to unbundle and liberalize the energy sector, a new law was drafted and Georgia's independent regulatory authority, the [[List of energy regulatory bodies|Georgian National Energy Regulatory Commission (GNERC)]], was formed. In addition to providing government subsidies, the GNERC was able to increase the prices of electricity and natural gas in Georgia to buffer the costs of recovery from the state's reform process.<ref>Revisiting Reform http://documents.worldbank.org/curated/en/2003/12/3219271/revisiting-reform-energy-sector-lessons-georgia</ref> Following these reforms, distribution has been increasingly more reliable, approaching consistent 24-hour-a-day services. Investments in infrastructure have been made as well.
Currently, a [[Private company|privately owned]] Energo-Pro Georgia, controls 62.5% of the electricity distribution market.<ref>[http://www.caucaz.com/home_eng/breve_contenu.php?id=318 New foreign investors are entering the Georgian market], caucaz.com</ref>

Georgia has transmission lines that connect its power grid to [[Russia]], [[Turkey]], [[Armenia]] and [[Azerbaijan]]. In July 2008, Georgia began exporting electricity to Russia through the Kavkasioni power line.{{citation needed|date=March 2023}} Later in 2009, Georgian Energy Minister [[Alexander Khetaguri]] incited scandal for a business deal struck with the Russian energy company, [[Inter RAO]], to jointly manage the Georgian [[Inguri Dam|Inguri]] hydropower plant for 10 years.<ref>Georgia’s Energy Minister Is Assailed for Deal With Russia https://www.nytimes.com/2009/01/14/world/europe/14georgia.html</ref> Khetaguri's proposal would entail a cash flow of around US$9 million into Georgia for use of the plant. Tensions ran high, however, as the Inguri hydropower plant provides nearly 40 to 50 percent of the country's electricity and is located at the administrative border of the secessionist [[Abkhazia]] region.<ref>Managing Enguri: A Russian Hydropower Play? http://www.eurasianet.org/departments/insightb/articles/eav011609e.shtml {{Webarchive|url=https://web.archive.org/web/20140427031643/http://www.eurasianet.org/departments/insightb/articles/eav011609e.shtml |date=2014-04-27 }}</ref>

Georgian [[Natural gas]] consumption stood at 1.8 billion cubic meters in 2007. Natural gas used to be supplied to Georgia by [[Russia]]. In recent years, however, Georgia has been able to eliminate its dependency on imports from Russia, thanks to increased hydroelectricity production, and the availability of natural gas sources from [[Azerbaijan]]. In addition, all Russian gas exports to Armenia pass through the Georgian pipeline system. Georgia takes 10% of that gas as a transit fee.<ref>en.rian.ru</ref>

Georgia is a partner country of the [[European Union|EU]] [[INOGATE]] energy programme, which has four key topics: enhancing [[energy security]],
convergence of member state [[energy market]]s on the basis of [[Internal energy market|EU internal energy market]] principles,
supporting [[sustainable energy]] development, and attracting [[Investment (macroeconomics)|investment]] for energy projects of common and regional interest.<ref>{{cite web|url=http://www.inogate.org/|title=INOGATE|work=inogate.org|access-date=2009-04-19|archive-date=2019-11-18|archive-url=https://web.archive.org/web/20191118080914/http://www.inogate.org/|url-status=dead}}</ref>