Short description of the overall project

The assistance is a policy-based loan that will be directed for execution of the reforms necessary to approximate the Energy Sector of Georgia with the EU requirements taken under the Energy Community Treaty. Overall, the Roadmap proposes a structured reform that is planned to be executed over 4 years (2018-2021). The suggested reform package tackles aspects in four key policy areas:

• Energy efficiency development: These policy reform measures aim to promote market efficiency through establishing and promoting energy efficiency both on the supply and demand side.
• Institutional development: These policy reform measures aim to establish market institutions in compliance, and in alignment with EU’s acquis and best practices such as, for example, an independent regulator. Moreover, the policy reform measures aim to build institutional capacity to monitor an organised market, enforce rules, as well as sanction illegal behaviours and market abuse by stakeholders.
• Internal market development: These policy reform measures aim to develop the principles and establish a Georgian domestic market in line with EU’s acquis and best practices and standards.
• Regional market integration: To fully reap the benefits of the new proposed Georgian market environment, the policy reform measures in this policy area promote the cross-border integration of the market with Georgian neighbouring power markets.