Green Energy Delegation to Tbilisi, Georgia 15 May

The Confederation of Danish Industry and the Danish Embassy in Tbilisi are delighted to invite you to participate in a Green Energy Delegation to visit Georgia as well as celebrating the official opening of the Danish Embassy together with the Danish Minister of Foreign Affairs.

This delegation’s purpose is to engage Danish companies in the green transition of the Georgian energy sector which has an urgent need of new technology solutions. DI and the Embassy in Georgia will set up B2B and B2G meetings as well as organize a business conference. The initiative meets a distinct demand from the Danish industry to engage in the Georgian market.  Also, there will be a special cultural program offered for the delegation on Sunday. Delegates arriving on Sunday will have an opportunity to participate on a wine tour to one of the must-visit winery of Chateau Mukhrani, which is famous for fabulous castle and cellars, wonderful gardens and vineyards.

WHO SHOULD JOIN?

The Green Energy Delegation to Georgia is relevant for companies interested in expanding their operations in the Eastern Europe and West Asian market. The mission is particularly relevant for companies that specialise in:

• Energy Efficiency
• Green Energy
• Renewable Energy
• Water
• Green construction/buildings
• Energy monitoring / digital solutions

Companies with interest in building a network of business partners and/or expanding their business horizons in general, should also participate.

WHY JOIN?

Currently, only about 30% of Georgia’s renewable energy potential is exploited. The announced Black Sea electricity cable by the EU is expected to open for export of green electricity to the European market. At the same time Georgia is surrounded by countries that either have higher electricity generation cost or electricity deficit. Turkey is the major export market for Georgia and is one of the top countries in terms of increase in electricity demand.

Georgia has Free Trade Agreements with 2.3 billon consumer markets, including the EU, Türkiye, the EFTA region, China (including Hong Kong), CIS countries and Ukraine. It has a GSP with the USA, Canada and Japan. The country ranked No. 7 in the most recent release of the World Bank’s “Ease of Doing Business Index”. Georgia is positioned 3rd Least Tax Burden Country in the World by Total Tax Rate (% of profit).

The Government has introduced incentives for the RE investments, including capacity auctions with contract of difference schemes for overall 1500 MW and the planned opening of day-ahead and intraday markets in upcoming months. GSE’s Ten Year Network Development Plan foresees a 220% growth in generating capacity, including 739 MW wind. There is currently an auction for 300 MW of renewable power going on based on a “Contract for Difference” model. Also, from 2024 new law obliges public buildings to supply at least 10% of its energy consumption from RE sources. All major IFI’s are investing in renewables in Georgia including NEFCO, EIB, IFC, EBRD.

TENTATIVE AGENDA

Participating companies will get the opportunity to attend B2B and B2G meetings with their Georgian counterparts. Furthermore, an organised business conference is planned with the focus on exposing the Danish solutions further for a broader number of Georgian counterparts, as well as networking events. Especially, within solar and wind there is a market potential, but other sectors within clean energy will also be explored.

The event will have a one-day programme that includes the following:

• Breakfast meeting with Georgian government representative and the Danish minister of foreign affairs
• Meeting with Invest in Georgia and investment banks
• Official opening of the Danish Embassy in Tbilisi hosted by the Danish and Georgian ministers of foreign affairs
• B2B-meetings at the Embassy

The Minister of Foreign Affairs, Lars Løkke Rasmussen, Danish politicians alongside with the Ambassador, Anne Toft Sørensen, will participate in the programme throughout the day. For those delegates arriving on Sunday, the embassy will organize an informal cultural excursion with a guide to one of the must-visit winery of Chateau Mukhrani.  The costs for the excursion shall be covered by the participants.

The Fine Print

The price is calculated based on 7 participating companies and a 75 pct. Brexit subsidy from the Danish Trade Council and the European Union. To participate in the delegation with the financial support from the Danish Ministry of Foreign Affairs, it requires that your company has been negatively affected by the UK’s exit from the EU. If you are unsure whether your company fulfils this requirement, you are welcome to contact Michelle Chen Møller, Adviser, International Trade and Market Development at the Confederation of Danish Industry, by e-mail: mcm@di.dk or phone: +45 5218 5947.

Registration is binding. If the number of participating companies’ changes, we reserve the right to offer participation at a different price. Should this result in a higher price than the one quoted you have the right to cancel your participation

Registration is in accordance with the General Terms and Conditions for participation in Export Promotion Events of the Confederation of Danish Industry (DI).

Georgian Market facts

Georgia populates 3.7m people and had a GDP of 24.6 billion USD in 2022. Georgia showed a significant economic growth rate of 10% in 2022.  The country is ranked No. 7 in the most recent release of the World Bank’s “Ease of Doing Business Index” in 2020. The Georgian economy is powered by six flat tax rates, competitive costs for operating a business, preferential free trade agreements and developed infrastructure. Energy and water sectors are actively financed by IFI’s.

To quantify the market, there is significant financing from IFI’s for projects in energy-efficiency to buildings and water sector. Between 2022-2023, investments by EU and IFI partners in energy efficient buildings amounted to approx. 60 m EUR and around 130 m EUR for water sector.

Georgian water infrastructure is very underdeveloped. For this reason, the government is actively cooperating with IFI’s, and numerous water renovation tenders are announced systematically. Currently, The United Water Supply Company of Georgia has received funds from KfW and has announced two expressions of interest. Firstly, expression of interest for contract for the construction of the water network, sewerage network, and storm water in western Georgia. Secondly, expression of interest for contract for construction of Wastewater Treatment Plants in three municipalities of western Georgia. Additionally, around 6 similar tenders are planned to be announced soon.

The Government has introduced incentives for the RE investments, including capacity auctions with contract of difference schemes for overall 1500 MW and the planned opening of day-ahead and intraday markets in upcoming months. Also, from 2024 a new law obliges public buildings to supply at least 10% of its energy consumption from RE sources (a target that has been developed by Danida financing). Especially, there lies a substantial market potential for Danish companies within solar, wind and hydrogen energy production. Currently, 202 renewable energy projects (153 hydro, 18 Wind and 31 Solar Power Plants) are on different development stages. Furthermore, the Georgian government is in process of evaluating prospects of hydrogen energy development in Georgia and analysing the socio-economic impact of hydrogen projects.

Furthermore, initiated by the Ministry of Environmental Protection and Agriculture of Georgia, Imereti Agro Zone is implementing a Greenhouse Cluster Development Project on a 220 ha land.  IAZ management is looking for international turnkey greenhouse suppliers, irrigation/heating system suppliers and other vital companies needed for greenhouse operation.

TRAVEL AND ACCOMMODATION Flights and hotels are not included in the price. But we will together with the Embassy and BCD Travel make a travel proposal for hotel and flight which you are welcome to use.