Assessment of Opportunities for Direct Use of Geothermal Energy in Georgia Tender

Procurement Summary

Country : Georgia

Summary : Assessment of Opportunities for Direct Use of Geothermal Energy in Georgia

Deadline : 18 Jul 2024

Other Information

Notice Type : Tender

TOT Ref.No.: 103571286

Document Ref. No. : 0002009984

Competition : ICB

Financier : World Bank (WB)

Purchaser Ownership : Public

Tender Value : Refer Document

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Tender Details

Expression of Interest are invited for Assessment of Opportunities for Direct Use of Geothermal Energy in Georgia

Georgia-s updated NDC commits to reducing GHG emissions by 47.5% by 2030 compared to the 1990 baseline. In the energy sector, Georgia committed to decrease GHG emissions by 15% and targets decreasing dependence on energy imports by increasing the share of renewable energy sources in final energy consumption to 27.4% by 2030. Achieving this depends on replacing fossil fuel use in the heating and transportation sectors with renewable and low-carbon energy sources. Georgia is net dependent on energy imports for transportation, heating, and electricity. Imported natural gas and oil accounted for 48% and 27% of the total energy supply in 2020. GHG emissions from fossil fuel use amounted to 9 Mt in 2020, with natural gas consumption accounting for 55% of total emissions. Meanwhile, residential heating accounted for 45% of emissions related to the use of natural gas.

In line with the NDC, the draft National Energy and Climate Plan (NECP) prioritizes decarbonizing the economy, strengthening energy security, and increasing research, innovation, and competitiveness. The development of Georgia-s geothermal resources has been included in the NDC given Georgia-s significant geothermal heat potential in at least 44 sites with a total estimated capacity of 250 million m3 per year. Given the low-to-medium temperatures of the resources[1], geothermal has been mainly used for water and space heating in several parts of the country. Expanding direct-use could replace significant amounts of natural gas use and have positive impacts on agricultural production.

A key obstacle to increasing the direct use of geothermal energy in Georgia is that knowledge about its utilization has deteriorated significantly since the 1990s. This review of the state and economic and financial viability of the use of geothermal heat intends to help revive the development of the sector. Many systems and wells have been destroyed or abandoned due to the impact of the 1992 conflict in Western Georgia, a lack of maintenance, and substandard operation (especially in Tbilisi), and a lack of financing and knowledge (especially in agriculture).

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