As Georgia makes progress with reform of its energy sector, the contribution that energy efficiency can make to its overall energy security will become increasingly visible. This was one of the main conclusions of the Energy Charter's in-depth review of Georgia's energy efficiency policies and programmes, which was completed in 2005.
Georgia has quite significant domestic energy resources relative to its own needs, notably in hydro-power, but is still highly dependent on imported oil and gas. Energy infrastructure is in a generally poor state, following years of under-investment and the effects of civil strife. To address these issues, the Georgian government has embarked on a major restructuring and liberalisation programme, with the emphasis on creating a strong market foundation for the energy sector.
A priority for the Georgian government has been to secure adequate and diverse sources of energy supply, and the Review encouraged the government to take a balanced approach between energy supply and demand measures. The development of a comprehensive energy efficiency strategy and legislation will need to be accompanied by efforts to strengthen the institutional capacity to implement energy efficiency policies.
The review was conducted by a team from four Energy Charter member states (Norway, Denmark, Sweden and the Former Yugoslav Republic of Macedonia), led by Johan Vetlesen, Deputy Director General in the Norwegian Ministry of Petroleum and Energy, and assisted by the Energy Charter Secretariat. Recommendations were adopted by the Energy Charter Conference in December 2005.