Renewable Energy Investor Guidebook

The program's objective is to support energy market development in Georgia per the country's obligations under the Energy Community Treaty (EnCT) with the European Union (EU). The program will have a significant impact on the Government of Georgia's (GoG) energy market reform efforts aimed at complying with EnCT obligations. The investment objective will be achieved through the provision of technical assistance to a variety of stakeholders in the energy sector. The purpose of the USAID Energy Program is to support energy market development in Georgia, build the GoG's capacity to evaluate the fiscal and long-term impacts of regulatory changes, promote energy investment, especially in variable renewable energy development, support the integration of non-hydro renewable energy into Georgia's power system, and provide strategic advisory services to the GoG to increase Georgia's energy security. The program will develop a Renewable Energy Investor Guidebook to help private developers navigate Georgia's project development process. The guidebook will include leading practices and road maps to address technical, administrative, regulatory, and financial issues. The guidebook will also help energy companies comply with the legislative acts, including the Law of Georgia on Public-Private Partnerships, enacted on May 4, 2018, and GoG Resolution Decree No. 515 on "Rules and Conditions for Submitting to the Ministry of Economy and Sustainable Development and Reviewing the Proposals on Conducting Construction Feasibility Study, Construction, Ownership, and Operation of those Power Plants which are not Public-Private Partnership Projects," enacted on October 31, 2018. A PPP agreement must meet the following criteria: long-term, value, public service or infrastructure, risk sharing, and private financing. The minimum term for the PPP agreement shall be defined by the legal act of the GoG, but may not be for less than a five-year period. Until July 1, 2020, the project value shall be no less than 5 million Georgian Lari (GEL); after July 1, 2020, the minimum project value shall be defined by the legal act of the GoG. The project must involve the provision of a public service or the construction, maintenance, and/or operation of public infrastructure by the private partner. Sharing risks between the public and private partners is also a requirement. Full or partial private financing of the project is also necessary. The program's goal is to enhance Georgia's energy security by improving the legal and regulatory framework for the energy market and increasing investments in the energy sector. Ultimately, the expected outcome of this program will be the implementation of a legal and regulatory framework that complies with the EnCT and other applicable EU requirements, encourages competition within the energy market, and galvanizes private sector investment.