Comments on Energy Strategy of Georgia 2020-2030

The program aims to build the capacity of the Government of Georgia (GoG) and relevant institutions to evaluate the fiscal and long-term impacts of regulatory changes, promote energy investments, primarily in Variable Renewable Energy (VRE) development, and support integration of non-hydro renewable energy into the power system. Georgia's membership in the European Energy Community (EnC) requires the implementation of mandatory reforms in the energy sector in compliance with European Union (EU) Energy Aquis. The country is committed to integrating into European and Euro-Atlantic organizations and transposing the best practices of leading European states into all sectors, including the energy sector. The Association Agreement (AA) signed between Georgia and the European Union in September 2014 lists the mandatory EU directives and regulations to comply with and links the deadlines for their transposition to the requirements set by the EnC. The USAID Energy Program has reviewed the Energy Strategy document, which is the fundamental and generalized document reflecting all steps and implementation measures to be executed to achieve the ultimate goal of the country and meet the EU requirements undertaken by the AA and Association Protocol signed by Georgia. The document provides main directions of the state policy in the energy sector, sets key priorities in view of the principles of sustainable development, and includes measures to improve the energy sector-related legislation, investment environment, and infrastructure development. The Energy Strategy 2020-2030 sets out the key priorities in energy sector development, including the improvement of the energy sector-related legislation, improvement of the investment environment, reduction of import dependence, strengthening of Georgia as a transit country, infrastructure development, development of electricity and natural gas markets, creation of strategic reserves, promotion of energy efficiency measures, promotion of energy resources import diversification, promotion of scientific and technical progress achievements and innovations, capacity building for human resources, and implementation of social policy. The USAID Energy Program presents comments on the strategy, including the need for a list of abbreviations and descriptions used in the strategy, a list of used measuring units, and a separate paragraph summarizing, prioritizing, and describing the strategic objectives and measures for reaching these goals. The program also suggests that the authority responsible for reaching the strategic objectives and monitoring, verification, and reporting on the implementation of the strategy measures and action plans should be clearly defined. Additionally, the program recommends ensuring Energy Efficiency and Energy Performance of Buildings in the legislation framework, describing market structure in compliance with EU requirements, and addressing several challenges for integration with the European single energy market.