Invest in hydropower in Georgia: why it’s a good choice

October 2023

Invest in hydropower in georgia

Over the past 5 years, Frosio Next has successfully completed significant hydroelectric projects in Georgia, relying on strong relationships with top financiers, suppliers and consultants on site, as well as in-depth knowledge of the region and its social and environmental characteristics.

Let’s discover in this article why invest in hydropower in Georgia is profitable and definitely a good option.


  • An open economy. The country offers a stable business environment, a growing economy with clear legislation and low taxation, opened to foreign investors.
  • Raising internal energy demand. The deficit by 2030 will exceed 4 TWh. To cover the deficit and meet the growth in domestic demand, investments in new hydroelectric power plants in the country of Georgia are mandatory.
  • A well-developed network infrastructure. The Georgian government consistently ensures network development, network improvement, and seamless integration of new generation capacities. New power lines in realization phase.
  • An immense export opportunity.Georgia has a competitive advantage over its neighbors when it comes to production costs. The countries surrounding Georgia have higher electricity production costs and electricity deficits.
  • Government Support. Hydropower projects are guaranteed maximum support from local authorities. The government expects about $3 billion in investments in the next three years for new energy projects.
Georgia hydropower projects


  • Renewable energy production projects are based on the Build-Own-Operate (BOO) principle.
  • Tariffs for the electricity generated by these hydroelectric power plants are mainly not regulated. The investor can be free to set the price for their energy sold on the open market.
  • HHP operators can sell the electricity generated directly to end consumers without any intermediary.
  • No export license is required.
  • No fee requested for connection to the transmission network.
  • Contracts for difference (CFDs) possibilities
  • Georgia is a member of the Energy Community, which means that the domestic energy market, rules, and principles in Georgia will align with EU market rules, leading to an integrated pan-European energy market.



  • Georgia has a great hydropower potential: there are more than 26,000 rivers in the nation, of which 300 are important for generating energy. It is estimated that there is a total of 15,000 megawatts (MW) of potential capacity.
  • A new scheme has been developed in cooperation between the Government of Georgia and the International Monetary Fund to facilitate the use of  renewable energies and attract investment to Georgia. The energy support scheme includes incentives to develop 800 MW of hydropower within the large initiative to promote renewable investments. Georgia released an energy strategy document that outlines an ambition to double its hydropower capacity over the next decade, from 3,300 MW in 2019 to 6,536 MW in 2030. The strategy includes a contract for difference policy mechanism to assist private investment in the hydropower sector.


Hydropower data 2023


Georgia investment
Georgia investment
Georgia Investment


Experience and Know-How

We are in energy and renewables business for over 40 years: we can count on strong relationships with top suppliers, financiers and consultants. Thanks to Frosio Next’s experience in the hydroelectric sector and our company’s relationships with major industry manufacturers, we can provide reliable informations from the early stages, highlighting uncertainties and providing a solid base for the client’s decision-making process.

Great Potential and ROI

Hydropower plants have a long lifetime and relatively low operating costs. Georgia’s landscape and rivers offer ideal conditions for hydropower construction. We preliminarily assess environmental constraints, the presence of protected areas, hydraulic/hydrogeological constraints, urban planning constraints, and landscape constraints. Anticipating this analysis allows us to proceed with a design aimed at mitigating existing constraint challenges.

Stable Investments

Hydropower plants represent a long-term stable and safe asset with a valuable return. We assure you an economic evaluation from the early stages, risks minimization and no surprises.


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