Transitioning the energy sector to achieve the 2030 Agenda for Sustainable Development and the objectives of the Paris Agreement presents a complex and difficult task for policymakers. It needs to ensure sustained economic growth as well as respond to increasing energy demand, reduce emissions and, more importantly, consider and capitalize on the interlinkages between Sustainable Development Goal 7 (SDG 7) and other SDGs. In this connection, ESCAP has developed the National Expert SDG Tool for Energy Planning (NEXSTEP). This tool enables policymakers to make informed policy decisions to support the achievement of the SDG 7 targets as well as emission reduction targets (NDCs). The initiative has been undertaken in response to the Ministerial Declaration of the Second Asian and Pacific Energy Forum (April 2018, Bangkok) and Commission Resolution 74/9, which endorsed its outcome. NEXSTEP also garnered the support of the Committee on Energy in its Second Session, with recommendations to expand the number of countries being supported by this tool.
The key objective of this SDG 7 roadmap is to assist the Government of Georgia to develop enabling policy measures to achieve the SDG 7 targets. This roadmap contains a matrix of technological options and enabling policy measures for the Government to consider. It presents several scenarios that have been developed using national data, and which consider existing energy policies and strategies, and reflection other development plans. These scenarios are expected to enable the Government to make an informed decision to develop and implement a set of policies to achieve SDG 7 by 2030, together with the NDC.
Roadmap Document Chapter Outline
| Executive Summary | |
| Chapter 1: Introduction | This chapter provides the background to NEXSTEP, SDG 7 targets and indicators, as well as the Nationally Determined Contributions (NDCs). |
| Chapter 2: NEXSTEP methodology | This chapter provides the descriptions of the key methodological steps and scenario definitions. |
| Chapter 3: Overview of the Indonesia’s energy sector | This chapter provides a current overview to the Georgia’s energy sector. It also covers the energy demand outlook in alignment with the current policy scenario. |
| Chapter 4: SDG scenario – achieving SDG 7 by 2030 | This chapter comprehensively describes the SDG scenario, as well as the policy actions required to achieve the SDG 7 and NDC targets. |
| Chapter 5: Energy transition pathways with increased ambitions | This chapter looks at various possible measures in raising Georgia’s ambition beyond just achieving the SDG 7 targets through several ambitious scenarios. |
| Chapter 6: Policy recommendations | This chapter describes the policy recommendation in raising Georgia's ambition beyond just achieving the SDG 7 and NDC targets. |
| Chapter 7: Rebuilding better in the recovery from COVID-19 with the SDG 7 roadmap | This chapter highlights several key areas that will assist policymakers in strengthening policy measures to help recover from the COVID-19 impacts while maintaining the momentum to achieving the 2030 Agenda for Sustainable Development and the Paris Agreement. |
| Chapter 8: Revisiting existing policies | This chapter provides an evaluation of Georgia’s current policies, highlighting revisions required to achieve the SDG 7 and NDC targets. |
| Conclusion | |
| References | |
| Annexes |
Georgia’s progress towards achieving the SDG 7 targets is promising, but more needs to be done to achieve all SDG 7 targets by 2030 through a concerted effort and the establishment of an enabling policy framework. Georgia has successfully provided universal electricity access to its population; however, further promotion of electric cooking stoves is still required to connect the remaining 900,000 people with clean cooking technology and fuel between now and 2030. Energy efficiency improvement needs to be boosted across different sectors in order to achieve a 2.9 per cent annual improvement, reducing energy intensity to 3.8 megajoules/US$ by 2030.
The existing trend indicates that the country will still miss the unconditional emission reduction target pledged under the Paris Agreement by a small margin. Emissions reduction can be achieved via demand side energy efficiency measures and through changing the fuel mix in the power sector. Achieving the unconditional NDC target, while at the same time meeting the SDG 7 targets, requires a 25.5 per cent share of renewable energy to be reached in the total final energy consumption (TFEC). The NEXSTEP analysis also shows that through the proposed improvement areas, Georgia’s energy security can be further strengthened as these measures will reduce its reliance on natural gas imports.
The levelized cost of electricity from renewable power technologies has experienced a steep decline, becoming economically more competitive than the conventional fossil-fuel-based technologies. Georgia may leverage its abundant renewable energy potential, specifically hydropower, to provide clean electricity for its neighbouring countries. In addition to generating revenue from electricity sales, this also permits further emission reduction for these countries.
Universal access to electricity
Georgia already achieved universal access to electricity in 2010. The 2007 Energy Policy for Georgia prioritizes improvement of service quality and the protection of consumer interests.
Universal access to clean cooking
Georgia’s access to clean cooking fuels and technologies was reported as 75.2 per cent in 2017. NEXSTEP analysis shows that the current rate of improvement of 2.7 per cent is not enough to achieve universal access to clean cooking (figure ES 1). Access to clean cooking will increases from 75.2 per cent in 2017 to 97 per cent in 2030, which will leave 109,000 people (32,000 households) in rural areas relying on inefficient and hazardous cooking fuels and technologies. Georgia needs to increase its efforts to achieve universal access to clean cooking fuels. This analysis indicates that electric cooking stoves will be the most feasible approach to ensuring universal access to clean cooking fuel by 2030.
The share of renewable energy in TFEC was calculated at 25.9 per cent (including traditional biomass) in 2018. Based on the current policy scenario, the share of renewable energy will decrease to 22.7 per cent by 2030, mainly due to the substitution of traditional biomass cooking stoves by other non-biomass cooking stoves. In the SDG scenario, the share of renewable energy in TFEC will need to reach 25.4 per cent (excluding traditional biomass) by 2030, which will ensure the achievement of Georgia’s unconditional NDC target.
Energy efficiency
Energy intensity in Georgia declined at an average annual rate of 4.9 per cent from 1990 to 2010, driven by the structural changes in Georgia’s economy due to the closure of energy-intensive industries and decline in output. Achieving the SDG 7.3 target requires an annual improvement of 9.8 per cent of primary energy intensity (figure ES 2) to achieve the SDG 7 target of 1.74 MJ/US$ by 2030 – a drop from 5.3 MJ/US$ in 2018.
The SDG 7.3 target for Georgia is not feasible; therefore, a revised target of 3.8 MJ/US$ by 2030, a 2.9 per cent annual improvement which is in line with global targets, is recommended. In the current policy scenario, energy efficiency measures, if implemented, indicate that Georgia will only achieve a 2.2 per cent annual improvement in primary energy intensity by 2030.
Nationally Determined Contributions
- Targeted interventions in rural areas are required to achieve universal access to clean cooking in rural areas. The electric cooking stove is the recommended technology option for Georgia to achieve this target. This option should be prioritized for the rural areas, which are grid-connected but still rely on traditional biomass cooking stoves. Implementation of this programme will cost the Government US$1.28 million to achieve universal access to clean fuels and technologies for cooking by 2030;
- Decarbonisation of heat is a major challenge overlooked by current policies. The NEXSTEP analysis recommends the adoption of energy-efficient heat pumps to replace old natural gas boilers in Georgian households. Such a measure not only decreases Georgia’s energy intensity, but also reduces reliance on natural gas imports;
- Electrification of transport is a viable solution with cheap electricity from hydropower. The NEXSTEP analysis recommends a long-term electrification strategy for Georgia. Fuel-switching from oil products to electricity will enhance energy security by reducing import as well as reduce emissions and establish Georgia as a leader in sustainable transport;
- Investment in wind and solar power should be promoted. The levelized cost of electricity analysis recommends increasing investments in wind and solar power. Georgia can achieve additional benefits by reducing natural gas imports as well as reduced vulnerability to hydropower seasonal variation and emission reductions in line with NDC targets. The additional investment needed to increase the share of wind and solar in power generation can be supported by a price on carbon. It has been estimated that a carbon price ofUS$40/tCO2-e would level the playing field for renewables as well as attract investors;
- Georgia has the potential to export 10 TWh per annum of clean electricity in 2030. The NEXSTEP analysis includes the target of 10 TWh annual electricity exports as outlined in the “Ten-Year Network Development Plan” of Georgia, 2018-2029. Georgia may leverage its cheap and abundant renewable energy sources for electricity generation, boosting its electricity sales in more lucrative electricity markets in neighbouring countries.