On Monday November 12, the ISET Policy Institute hosted a workshop entitled “Economic Instruments for Water Resource Management”. The Energy and Environment Policy Research Center at the ISET Policy Institute (EEPRC) presented its policy paper on the topic in front of several institutional stakeholders and interested citizens.

Thanks to the support of the Europe Foundation, the EEPRC conducted an extensive review of the literature on economic instruments for water management, all of which is in compliance with the principles highlighted by the EU Water Framework Directive, and a study of their feasibility in the Georgian context. The aim of this project was to support Georgia’s path towards integration in the European Union and the implementation of its obligations under the Association Agreement, as well as to contribute to the sustainable managementof water resources in Georgia.All major economic instruments potentially useful to incentivize the sustainable use of water resources in Georgia were discussed, highlighting the feasibility of alternative policy options.

Georgia committed to harmonize its electricity market legislation with EU Third Energy Package and liberalize it according to the accession protocol with the Energy Community. These structural changes are expected to contribute to a more efficient functioning of the Georgian electricity market and to support its development. The Georgian electricity market opening has already started. As a first step, recent amendments in the Law of Georgia on Electricity and Natural Gas mandated 110-35 kV customers with monthly average of 15 mln kWh consumption to trade on the wholesale electricity market. To support market development, it is foreseen to establish an organized spot electricity market, where market participants, namely electricity producers, traders, suppliers and electricity customers at wholesale level, will sell and procure electricity. Therefore, Georgian electricity market participants are currently in need to acquire tools, knowledge and skills to conduct modern electricity trading and risk mitigation actions, and to optimize their selling and buying decisions in both local and neighboring electricity markets.

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