According to Geostat, in the third quarter of 2025, the energy sector, for the first time in many years, ceased to be among the top ten recipients of foreign direct investment. Maia Melikidze, Executive Director of the Renewable Energy Development Association, attributes the sharp drop in FDI to protracted problems and the absence of clear rules of the game in the industry.
Particularly serious difficulties are observed in hydropower. According to Melikidze, the parliament has not adopted the law prepared by GREDA, which was supposed to stimulate the development of hydropower generation. At the same time, the unexpected and early replacement of the net metering system with net billing hit solar energy, slowing down the inflow of investors who were counting on the transition only after 2027.
Wind energy is also developing slower than expected — there is only one wind farm currently operating in the country. The start of construction of two more is expected in the coming months, but the process of integration into the energy system will take time. The lack of competence and experience in this segment also restrains growth.
Melikidze emphasizes that the industry urgently needs a development strategy with a clear action plan, responsible parties, and established deadlines. Otherwise, the situation of 2025 may repeat itself as early as next year. The energy sector, which until recently was among the top three leaders in FDI, has now fallen out of the top ten — at a time when the country declares it a strategic priority number one.
