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OFF BALANCE/ THE GEORGIAN ENERGY SECTOR AND THE CONTRAD...

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Off balance/ The Georgian energy sector and the contradictions in EU policy and practice

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Off balance/ The Georgian energy sector and the contradictions in EU policy and practice



Publisher: CEE Bankwatch Network

Date: June, 2013

Volume: 38 pages, pdf

Description

This study reviews the development of greenfield hydro projects in Georgia and explores how current energy sector trends in the country relate – or otherwise – to sustainable energy principles. It concludes that the Georgian government, together with the European Union (EU) and EU institutions such as the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD), continues to support so called ‘traditional’ energy projects, mainly large hydro, and is not taking sufficient steps to support important elements of sustainable energy such as environmental integration, renewable energy sources and energy efficiency. The study highlights how political decisions taken in favour of traditional energy projects often come about without proper economic analysis and justification, and lack proper consideration of all the costs and benefits involved; such decisions result in negative impacts for the Georgian environment and public. The study also points out the non-compliance of the ongoing development of large scale hydro power plants in Georgia with EU directives, and further raises questions about certain incoherencies between EU policies and investments.