Sustainable Energy Week

Energy Efficiency and EU

Improving energy efficiency has important environmental, economic and social implications. It is one of the cost-effective ways to minimise our overall energy demand, and therefore reduce greenhouse gas emissions and other pollutants. Efficient use of energy also allows businesses to save operational costs, create new opportunities and more jobs. Furthermore, it helps households to lower energy bills, decrease living costs and improve overall standards of life, including health and safety.   

Achieving an energy efficient Europe has been the EU goal for a long time. Efficient use of energy to lower costs and reduce emissions by increasing the share of renewable energy is the priority. The Energy Efficiency Directive (the “EED”) adopted by the EU in 2012, puts forward legally binding measures to step up Member States’ efforts to use energy more efficiently at all stages of the energy chain – from the transformation of energy and its distribution to its final consumption.

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Energy Efficiency and Georgia

Georgia voluntarily assigned to reduce its greenhouse gas emissions by 15% compared with a business-as-usual scenario by 2030.

Energy efficiency has the potential to contribute to lowering the costs on a household and economy-wide level, boost economic growth, sustainable growth and job creation. Apart from that, energy efficiency is one of the ways to reduce demand for energy imports and to strengthen the country’s energy independence.

EU Support to Energy Efficiency in Georgia.

Energy efficiency is among the priorities of EU assistance in Georgia. The EU supports reinforcement of the Energy Efficiency, promoting the use of Renewable Energy sources and financing modernisation of energy infrastructure in the country.

Among programmes focused on reinforcement of EE in the country are:  

  • EU4Energy and Georgian Energy Sector Reform Programme adapting Georgian legislation based on EU Directives, financing projects and programmes to engage private sector and raise awareness among general public.
  • Covenant of Mayors grants for municipalities and demonstration projects
  • Programme for EE rehabilitation of Public Buildings in line with new legislation.
  • Green lending in collaboration with Georgian commercial Banks
  • E5P Fund, providing support to sustainable municipal projects, including efficient buses and energy efficiency rehabilitation of schools and other public buildings.

All these projects contribute to saving Energy, making Georgia more independent and resilient, reducing costs for citizens and companies.  


Some of the EU supported projects are underway and some are already bringing results.

– Under the coordination of the Ministry of Economy and Sustainable Development of Georgia in close cooperation with the Secretariat, and with technical assistance provided by the EU supported project EU4Energy Georgia adopts two key energy efficiency laws that gives Georgia the opportunity to receive significant investments in public building renovation programmes, amounting to €80 million from the European Bank for Reconstruction and Development (EBRD) and German Bank KfW, €26 million in investment grants and €8.5 million in technical assistance from the EU.

Georgia will get an additional €150 million in a policy-based loan tranche from KfW and the French Agency for Development (AFD) for the implementation of reforms.

– Within the EU’s Covenant of Mayors grants, 3 kindergartens were successfully retrofitted in Rustavi in 2015-2017 with modern insulation and energy efficient lighting and appliances and as a result, energy use reduced by 50% together with CO2 emissions. A total budget of the project was EUR 808 765 (GEL 2.4 million), of which the EU contributed EUR 646 527 (GEL 1.9 million), and Rustavi City Municipality EUR 162 236 (GEL 500,000).

The EU’s “Covenant of Mayors Demonstration Projects” (CoMDeP) Programme aims to show the benefits of implementation Sustainable Energy Action Plans (SEAPs) adopted by the various Municipalities under the Covenant of Mayors in Georgia.

– As a result of Covenant of Mayors for Climate & Energy initiative Municipality of Telavi received EU contribution of 598,913 Euro for thermo-modernization of 2 selected municipal/public buildings with consideration of RE & EE technologies.

As a result of the project Ikalto Kindergarten established renewable energy (biomass) supply chain in order to ensure the heating buildings with using of agriculture wastes (vineyards’ pruning resides).

Decreased dependence on imported fossil fuels & saved 60% on energy.

Raised awareness on benefits of clean energy technologies among interested stakeholders and public at large in target municipality and beyond.

– With EU financial support the EBRD and the multi-donor E5P fund delivered 8 electric buses to Batumi.

The low-floor buses improve the service for the city’s residents and visitors, facilitating easier access for passengers with limited movement, the elderly and disabled, as well as for parents with pushchairs.

The vehicles benefit environment by reducing emissions by 50%.

A grant of over GEL 4 million (€1.5 million) was issued to upgrade Batumi’s existing bus fleet.

– In its way to increase the energy efficiency of public buildings and reducing municipal costs Georgia is supported by EU and the Eastern Europe Energy Efficiency and Environment Partnership (E5P). The international financial institution and the E5P partnership are helping tens of schools and day care centres to become more energy efficient by financing the project “Energy efficiency improvements in public buildings and the use of renewables and alternative energy in Georgia”.

In 2018 Georgia signed loan and grant agreements with NEFCO and E5P, and received over €5.1 million in investments, including €1,870,000 in the form of grants. The project is planned to be completed in 2021 and covers 26 public buildings.

Tbilisi Experimental School No. 1 is one of the schools undergoing energy modernisation. The school has 2,600 students and it can pay up to GEL 60,000 (around €16,000) in municipal services per year.

A total of GEL 1.6 million (nearly €430,000) is allocated for rehabilitating day care centers, most of which are located in Akhaltsikhe. As a result of this project, 10,000 people, including children, teachers, and municipal staff, will have a better work and learning environment. The project will also reduce carbon dioxide emissions by 1,300 tones per year and save an average of €200,000 on energy.

Non-polluting electric buses

Biomass Energy and Energy-Efficient Technologies 

EU4ENERGY: Energy-efficient clinic in Georgia  

Shilda Winery Won The EU Sustainable Energy Award 2019

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