The agreement was signed during a visit of a Georgian delegation to Iceland which included the Georgian Minister of Economy and Sustainable Development, Levan Davitashvili, and representatives of the Georgian Oil and Gas Corporation and Georgian Energy Development Fund. The delegation discussed development of geothermal energy and priorities of cooperation with Gudlaugur Thór Thórdarson, the Icelandic Minister of the Environment, Energy and Climate.
The visit was also an opportunity for the delegation to explore opportunities for cooperation with business sectors and delegations from other foreign countries.
Part of the memorandum is a pledge to encourage harmonization of the energy legislation in Georgia with the European Union and increase energy efficiency in public buildings. In connection to this, the Georgian Economy Minister had announced that the Government has introduced changes to the support scheme for renewable energy projects to help expedite their operations and attract new investment into this sector.
According to the Minister, the new support mechanism will involved fixed price rates determined through auctions for renewable energy projects to mitigate commercial risks in project implementation. With clear mechanisms and increased guarantees, the Minister is optimistic that these new measures will help support qualified developers and investment.
Davitashvili is optimistic that 2025-2026 will be particularly active in energy initiatives and that active investments will increase resulting in many power plants becoming operational.
“We will be able to support projects more quickly and flexibly this year. Projects that took part in the auction but could not be accommodated within the capacity quota will now have the option to negotiate directly with the Ministry to receive a fixed price support scheme, not exceeding the median price for different project types,” said Davitashvili.
