Assessing Investment in Georgian Energy ProjectsRATIONALE
As is the case for many nations of the former Soviet Union, Georgia has suffered difficult economic times in recent years. Unemployment ranges around 30 percent. Small and medium enterprises (SME) involved in renewable energy (RE) and energy efficiency (EE) have the potential to make significant contributions to Georgia's economy, as well as to promote the development and use of clean energy. Using funds from the Global Environment Facility (GEF) under programs to mitigate the effects of global climate change, the International Finance Corporation (IFC) is seeking to support RE and EE operations. Most small entrepreneurs in Georgia lack sufficient training to manage a business, though, and their activities may not be sufficiently profitable or environmentally beneficial to warrant investment. Investors need to know whether such enterprises are viable business opportunities.
Winrock will assess the market to determine the business rationale for RE/EE activities in Georgia. Possible investors in the RE/EE market will be able to understand the potential for energy supply to industrial and commercial customers; assess key barriers and drivers of both the supply and demand sides, and understand what steps must be taken to develop a sustainable green energy proposition. The assessment will also examine the potential for transferring activities that might be replicated in other countries and markets.
Winrock's GEF-eligible SME market assessment consists of three main areas of analysis: (1) an assessment of Georgia's enabling business environment; (2) a market analysis to map and analyze Georgia's renewable energy and energy efficiency sectors; and (3) the potential for new GEF-eligible sectors to be introduced and developed in Georgia. Data on issues such as Georgia's financial and SME sectors, policies and regulations, market segmentation and size, potential demand for financing and technical assistance, and possible partners will enable the IFC/GEF and financial intermediaries to invest more effectively in Georgian enterprises.