Gov’t to cancel 1 bln Lari in energy sector fines to boost renewable projects, PM

The Georgian government will write off accumulated fines for all companies involved in renewable energy projects, with the total value reaching 1 billion lari, Prime Minister Irakli Kobakhidze announced at a briefing at the Government Administration on Wednesday.

Kobakhidze said that debts, penalties, and surcharges accrued over previous years have posed obstacles to the development of the country’s energy system.

“To remove these financial barriers, we have made a crucial decision for companies in the sector: accumulated fines and penalties will be cancelled according to specific conditions,” he said.

Under the new arrangement, companies will be required to meet updated deadlines and project commitments. Failure to comply will result in the full reinstatement of both newly accrued and previously forgiven fines. The conditional cancellation aims to achieve two goals: remove financial obstacles for renewable energy projects and ensure companies remain motivated to complete their projects on schedule.

“This decision marks the beginning of a new process based on mutual cooperation and accountability between the state and companies. It means new agreements, schedules, and reasonable obligations,” Kobakhidze added.

He also emphasized that the government will strictly enforce any new unfulfilled obligations or debts, while this policy introduces incentives to accelerate the development of the energy sector - a key factor in strengthening Georgia’s economic growth and independence.

Kobakhidze thanked Economy and Sustainable Development Minister Mariam Kvriashvili and her team for preparing the initiative and wished energy companies success in implementing renewable energy projects.