Georgia will save several million lari a year by importing electricity directly from Azerbaijan. Prime Minister Irakli Kobakhidze announced at a government meeting in Tbilisi that intermediary companies would no longer be used.
“Electricity will no longer be imported from any country through an intermediary company,” Kobakhidze said.
He said cutting out intermediaries, particularly in trade with Azerbaijan, would save the state several million lari each year, or about $1 million.
Georgia meets part of its electricity demand through imports. The need for imported power typically rises in winter, when output at hydropower plants declines.
According to reports, Azerbaijan exported 194.88 million kilowatt-hours of electricity to Tbilisi in the first seven months of 2026. The deliveries were valued at $11.58 million.
Azerbaijan and Georgia signed a comprehensive intergovernmental agreement on electricity supply and transit in Baku in May this year. President Ilham Aliyev ratified the agreement in July. It is set to remain in force for 20 years.
Azerbaijan, Georgia, Türkiye and Bulgaria are in talks on establishing an expanded land-based electricity transit corridor to supply energy to Europe.
According to a 2023 analysis by the non-governmental organization Transparency International Georgia, Azerbaijan accounted for two-thirds of Georgia’s electricity imports between 2017 and 2022. United Nations trade data show that Georgia imported more than $247 million worth of electricity from Azerbaijan between 2016 and 2023.