Georgia’s Rising Electricity Imports in 2025: Causes, Challenges, and Strategic Implications

In January 2025, Georgia doubled its electricity imports compared to the same period in 2024, while the cost of imported electricity surpassed $9 million. This surge highlights the country’s increasing reliance on external energy sources, raising economic and strategic concerns for its energy sector.

Electricity Import Growth: Key Statistics

According to Georgia’s National Statistics Office, the country imported 334.5 million kWh of electricity in January 2025, marking a 109% increase from the 160.1 million kWh imported in January 2024. However, the most alarming factor is the sharp rise in electricity prices:

• In January 2024, the average price per kWh of imported electricity was $0.75.
• By January 2025, this price had surged to $2.61 per kWh, reflecting a 248% price hike.

This drastic increase in import costs places severe financial strain on the country’s energy budget and raises concerns over long-term energy security.

Sources of Electricity Imports

Georgia sources imported electricity from only two countries: Azerbaijan and Russia.

• Azerbaijan remains the primary supplier, providing electricity worth $8.5 million in January 2025.
• Imports from Russia were minimal, amounting to just $189,000.

Such high dependency on a limited number of suppliers creates economic risks, as any market disruptions or price fluctuations in Azerbaijan or Russia could severely impact Georgia’s energy supply and costs.

Declining Electricity Exports

While imports surged, Georgia’s electricity exports nearly disappeared.

• In January 2024, Georgia exported 8.47 million kWh, generating $551,000 in revenue.
• By January 2025, exports plummeted by 24 times, reaching just 341,000 kWh, with Azerbaijan as the only export destination.

This decline indicates that Georgia is losing its competitive position in the regional electricity market, shifting from an energy exporter to a net importer.

Potential Causes of Increased Electricity Imports

Several factors likely contributed to Georgia’s rising reliance on imported electricity:

1. Seasonal Decline in Hydropower Production

   • Georgia’s energy sector relies heavily on hydropower, which experiences reduced output during winter months.
   • Low reservoir levels and reduced precipitation further limit local electricity generation.

2. Lack of New Energy Investments

   • The country has not made sufficient investments in alternative energy sources, leading to supply shortages.
   • Delays in hydropower and renewable energy projects have further restricted domestic production capacity.

3. Regional Energy Market Disruptions

   • Rising electricity demand across the region and global energy price hikes have driven up the cost of imports.
   • Supply chain issues and geopolitical instability may have further influenced price volatility.

Strategic Risks and Challenges

The rising dependence on imported electricity presents multiple risks for Georgia’s energy sector:

• Economic vulnerability: Higher import costs could increase energy tariffs for businesses and households.
• Energy security concerns: Dependence on a few external suppliers leaves Georgia exposed to supply disruptions.
• Diminished regional influence: The sharp decline in electricity exports weakens Georgia’s role in the South Caucasus energy market.

Policy Recommendations: Strengthening Energy Independence

To reduce import dependency and ensure long-term energy security, Georgia must undertake urgent energy sector reforms.

1. Expanding Renewable Energy Sources

• Accelerating solar and wind energy projects could diversify the country’s energy mix and reduce seasonal fluctuations.
• Investments in battery storage technology could stabilize supply and store excess renewable energy.

2. Revitalizing Hydropower Investments

• Developing new hydropower plants and upgrading existing ones could boost domestic generation capacity.
• Implementing small-scale hydropower projects could ensure distributed energy production across different regions.

3. Enhancing Regional Energy Partnerships

• Expanding electricity trade agreements with Turkey, the EU, and other neighbors could diversify supply options.
• Strengthening energy grid interconnections with European partners could enhance grid stability and import flexibility.

4. Promoting Energy Efficiency Initiatives

• Encouraging energy-saving technologies and efficiency upgrades in residential, industrial, and commercial sectors could reduce national electricity demand.
• Government incentives for energy-efficient appliances and building designs could further lower consumption rates.

Conclusion

The sharp rise in electricity imports in early 2025 exposes Georgia’s growing energy dependence and rising costs, highlighting the urgent need for strategic energy reforms. By investing in renewable energy, modernizing hydropower, and enhancing energy efficiency, Georgia can reduce reliance on imports, stabilize electricity prices, and strengthen its energy security in the years ahead.