Clean energy investments can contribute to energy security through reduction of energy import dependency and also maintain cleaner environment.
Georgian economy is heavily dependent on import (in 2013 the import / GDP ratio was 0.5). In 2013, the indicator of import of goods and services is 7885 mln USD, which exceeds almost 3 times to the indicator of export for the corresponding period. Unfortunately, contribution of the energy sector in this gap is high. In 2013, the share of energy in total imported goods and services is 38%. In 2013, about 2/3 of gross energy demand is met with imported energy resources.
At the same time, country has unutilized potential of clean, environmentally friendly, renewable sources of energy. For instance, only 18% of economically feasible hydropower energy (40 bln kWh annually) is utilized so far. Besides, Georgia has a considerable potential for exploitation of untapped wind and solar energy. The Government of Georgia (GoG) has acknowledged the importance of clean energy investments and has been actively promoting hydropower investments since 2006.
Clean energy sources can help to reduce reliance on fossil fuel, to improve the security of energy supply, to meet the global commitments to protect the environment and to contribute to employment generation. Hence, this research analyzes the impacts of investments in clean energy in Georgia on three main pillars of sustainable development: The paper focuses on assessing environmental (emissions reduction for the country) energy (energy security, energy independence) and social (job creation) impacts of clean energy investments.