Renewable energy is becoming one of the strongest drivers of Georgia’s economic future, according to new research by Dr. Giuli Giguashvili and David Tchiotashvili of Gori State University, Georgia. Published in 2026 in the International Journal of Applied Research and Sustainable Sciences (IJARSS), the study concludes that expanding renewable energy can reduce the country’s dependence on imported fuels, improve economic competitiveness, create new jobs, and support long-term sustainable development. As countries worldwide accelerate the transition toward clean energy, the findings position Georgia as a promising regional example of how renewable energy can simultaneously advance economic growth and energy security.
The study arrives at a time when governments are facing growing pressure to meet rising electricity demand while reducing greenhouse gas emissions. Rapid industrialization, expanding digital infrastructure, electric vehicles, and artificial intelligence are increasing global energy consumption, making reliable and sustainable energy systems more important than ever.
For Georgia, the challenge is especially significant. Although the country possesses abundant hydropower resources and considerable potential for solar, wind, geothermal, and biomass energy, it still relies on imported energy during certain periods of the year. Developing domestic renewable energy resources could reduce that dependence while strengthening economic resilience and attracting new investment.
Renewable Energy as an Economic Strategy
Rather than focusing solely on environmental benefits, the researchers present renewable energy as a strategic economic asset. They argue that investment in clean energy contributes to national development by supporting industrial growth, increasing productivity, and improving energy independence.
Dr. Giuli Giguashvili and David Tchiotashvili also note that previous studies often examined renewable energy, energy security, or Georgia’s energy potential separately. Their research combines these dimensions into a broader assessment that links renewable energy development with economic growth, investment attractiveness, and future policy opportunities within the Georgian context.
How the Research Was Conducted
The researchers used a qualitative descriptive and analytical approach based entirely on secondary data. Instead of conducting surveys or experiments, they examined scientific literature, official government statistics, and reports from internationally recognized organizations.
The analysis drew on publications from the International Energy Agency (IEA), the International Renewable Energy Agency (IRENA), the United Nations, the World Bank, the Georgian State Electrosystem (GSE), the National Statistics Office of Georgia (Geostat), and peer-reviewed academic journals published between 2020 and 2026.
To ensure reliability, information from multiple independent sources was cross-checked before being incorporated into the analysis.
Key Findings
The study identifies several ways renewable energy supports economic development in Georgia:
- Economic growth: Greater access to energy stimulates business activity and contributes directly to Gross Domestic Product (GDP) growth.
- Job creation: Renewable energy projects generate employment both within the energy sector and across related industries.
- Energy security: Expanding domestic renewable energy reduces dependence on imported fossil fuels and improves national energy independence.
- Environmental benefits: Lower carbon emissions and cleaner air reduce environmental damage and potentially lower healthcare costs.
- Innovation: Investment in renewable energy encourages technological development, including smart grids, energy storage, and energy efficiency.
- Regional development: Decentralized renewable energy systems can provide electricity to remote communities, supporting more balanced regional economic growth.
According to the authors, sustainable energy development depends on combining renewable energy deployment, improved energy efficiency, long-term investment, and effective government policy.
Rising Electricity Demand Increases the Need for Renewable Energy
The research highlights rapidly increasing global electricity demand driven by industrial expansion, artificial intelligence data centers, electric vehicles, and air conditioning.
Drawing on International Energy Agency data, the authors report that global electricity demand grew by approximately 3 percent in 2025 and is projected to increase by 3.3 to 3.7 percent in 2026. A chart presented in the study shows that electricity consumption has consistently risen alongside global economic growth over recent decades.
Georgia reflects this broader trend. The researchers estimate that national electricity consumption will increase by an average of 3.4 percent annually between 2026 and 2035.
At the same time, Georgia has experienced strong economic recovery following the COVID-19 pandemic. Official statistics indicate that the country's average real GDP growth reached 9.3 percent between 2021 and 2025, while economic growth for 2026 is projected at 6.5 percent. These figures reinforce the close relationship between economic expansion and rising energy demand.
Georgia's Renewable Energy Potential
The study points to ambitious national renewable energy targets.
Georgia plans for renewable energy to account for 27.4 percent of total final energy consumption by 2030. Planned renewable capacity includes approximately 1,332 megawatts (MW) of wind power and 520 MW of solar power.
Beyond hydropower, Georgia possesses significant untapped resources in wind, solar, geothermal energy, and biomass. According to the researchers, expanding these sectors could attract foreign direct investment, create skilled jobs, strengthen regional economies, and increase the country's international competitiveness.
The authors also note that Georgia continues to face challenges, including seasonal electricity shortages, infrastructure limitations, and investment needs. However, ongoing improvements to the national electricity network and greater investment in renewable generation could significantly reduce these constraints.
The research cites projections suggesting that Georgia could become a net electricity exporter as early as 2028, while renewable energy could supply approximately 95 percent of domestic electricity consumption by 2035. Such progress would substantially reduce reliance on imported energy and strengthen Georgia's strategic position within the Caucasus and Black Sea region.
Implications for Policymakers and Industry
The findings have implications beyond Georgia.
Governments seeking greater energy independence may benefit from policies that encourage renewable energy investment, modernize electricity infrastructure, and diversify national energy portfolios. Businesses may find expanding opportunities in renewable energy technologies, while investors could view Georgia as an emerging market for clean energy development.
Educational institutions and researchers may also use the study as a reference for understanding the relationship between renewable energy, economic development, and national security in developing economies.
As Dr. Giuli Giguashvili and David Tchiotashvili of Gori State University emphasize, renewable energy should be viewed not merely as an alternative source of electricity but as a strategic economic resource capable of generating long-term social, environmental, and economic benefits for Georgia.
Author Profile
Dr. Giuli Giguashvili is a researcher at Gori State University, Georgia, specializing in energy economics, sustainable economic development, renewable energy policy, and energy security. Her research focuses on energy transition, economic resilience, and regional development.
David Tchiotashvili is a researcher at Gori State University, Georgia, whose expertise includes renewable energy investment, energy business development, economic policy, and sustainable development. His work examines the role of renewable energy in strengthening economic competitiveness and long-term national development.
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