Economic, Financial, and Investment Perspectives for Renewable Energy Business Development in Georgia

Abstract

The future development of the energy sector of Georgia significantly depends on the development of the energy business, in which renewable energies hold a special place and which, in turn, possesses very significant potential. In recent years, global political instability, climate change, the necessity of energy security, and the fluctuation of energy resource prices on the world market further strengthen the importance of renewable energy on an international scale. These factors have determined the interest of various countries, including Georgia, in the diversification of the energy sector and the promotion of renewable energy business development. Renewable energy business has a distinctly pronounced economic, financial, and investment logic for Georgia, stemming from the fact that it promotes economic growth, attracts investment, diversifies energy directions, facilitates the formation of a green economy, and implements environmental and climate ambitions.

The aim of the work is to analyze the economic potential of renewable energy business development in Georgia and to assess investment perspectives in the context of local and international business opportunities. The study analyzes the existing energy business potential in Georgia, state strategies and regulations, including the opportunities for renewable energy business development in the years 2023–2030 in the context of the European Union's 'Green Deal,' and based on economic analysis, identifies the key factors that determine the investment perspectives and economic viability of the renewable energy sector stemming from current economic realities.