USAID Energy Program

USAID Energy Program

USAID Energy Program (UEP) is a $7.5 million 3-year project aimed at supporting Georgia in energy market development per Georgia’s obligations under the Energy Community Treaty. The ultimate goal of this program is to enhance Georgia’s energy security through improved legal and regulatory framework and increased investments in the energy sector.

UEP will build the capacity of the Government of Georgia (GoG) and relevant institution(s) to evaluate the fiscal and long-term security impacts of regulatory changes, promote energy investments, primarily in variable renewable energy development, support integration of non-hydro renewable energy into the power system, and provide strategic advisory services to the GoG to increase Georgia’s energy security.

UEP will assist the GoG to continue to implement competitive markets in electricity and natural gas. UEP will also support the GoG in further integration of renewable energy project and will continue to promote cross-border trade in clean energy between Georgia, Armenia and Turkey.

The Project will engage in the following five distinct but interdependent areas of technical assistance expected to improve the legal basis for new investments in the power sector and improved energy security:

  1. Energy Market Development: support to the GoG, Georgian National Energy and Water Supply Regulatory Commission (GNERC) and market participants in the development of competitive energy markets and the harmonization of Georgia’s electricity market with neighboring markets in compliance with the EU’s Energy Community Treaty;
  2. Institutional Strengthening and Capacity Building regarding Competitive Energy Markets and Cross-Border Electricity Trade: assistance to the government institutions including the Ministry of Economy and Sustainable Development of Georgia (MoESD) and GNERC;
  3. Energy Investment Optimization: establishment of enabling environment and investment promotion plans for non-hydro renewable energy plans;
  4. Grid Integration of Variable Renewable Energy (VRE): support to the wind farm developers and GSE in integrating new VRE plants into electricity grid;
  5. Strategic Advisory Assistance to the GoG Increase Energy Security: UEP will advise the GoG on energy security policy and complex energy infrastructure operations, based on detailed domestic and regional studies.