Over the last decade electricity consumption has grown largely in line with real GDP growth rate and reached 10.4 TWh in 2015. If This trend continues, in 10 years Georgia will have significant generation deficit. Between 2004 and 2010 as a result of renewal and rehabilitation of existing HPPs generation also grew significantly. Since 2012 twelve new HHPs have been commissioned, but as consumption continues to rise not only in Georgia, but in neighboring countries as well, there is great opportunity to develop new power plants to keep up with this ever increasing demand. According to estimates, only 25% of Georgia’s energy potential is exploited. Meaning that there is huge untapped potential, mostly from hydro resources, but also from wind, solar, geothermal and biomass sources as well.
With abundance of high mountains and fast-flowing rivers, Georgia has competitive advantage over neighbors in terms of generation cost. Most attractive export market is Turkey who rankes first in Europe and second in the world after China in terms of electricity demand increase. Turkey experiences electricity shortage during summer months, while Georgia has generation surplus. Over the last decade, Turkey’s electricity consumption in 2014 was 257.22 TWh, with generation deficit of 5.2 TWh. The Turkish Electricity Transmission Company (TEIAS) forecasts that Turkish electricity consumption will grow by 5.5% on average annually. Almost 80% of electricity was generated by gas and coal-fired power plants. So, even with lower oil and gas prices, it’s expected that electricity prices in Turkey will remain high.
Georgia has well developed transmission grid infrastructure. Whole territory of Georgia is covered with over 3,000 km high, medium and low voltage lines and about 100 substations. In 2013, a new 400 KV line with HVDC back-to-back substation connecting Georgia with Turkey was commissioned, adding to already significant transmission capacity with all neighboring countries. By the end of 2015, cross border transmission capacity will reach 5,000 MW.

In 2015, Network Development Plan was approved by the government, which will ensure continuous improvement of grid and seamless integration new generation capacities.