The National Bank of Georgia conducted a presentation on its research into the energy sector, which was attended by representatives from the financial and energy sectors.

Acting Governor of the National Bank of Georgia, Natia Turnava, opened the event with a speech highlighting the energy sector's strategic importance and its role in ensuring financial stability. She emphasized that such sectoral studies and meetings provide a platform for stakeholders to exchange opinions, identify challenges, and support sectoral development.

 

Turnava stated, "The energy sector's portfolio in banks is characterized by stable, low credit risks. Its substantial share in banks' loan portfolios contributes to financial stability and reduces cyclicality. Therefore, we are actively promoting more loans for the development of green energy. Our strategy is centered on developing sustainable financing, and as such, we are implementing regulations to incentivize banks to finance as many green energy projects as possible."

She underscored the importance of the research and similar events, where the energy and financial industries converge, allowing for a clearer understanding of sectoral challenges and the role of the National Bank of Georgia in addressing them.

 

"We at the National Bank of Georgia have the opportunity to understand the role we can play in addressing these challenges," she added.

The study, prepared by the NBG's Specialized Risk Department, includes a general overview of Georgia's energy system, a comparative analysis of energy systems by country, an overview of the sector's credit portfolio, and a financial analysis of power generating stations.

According to the research, existing private hydroelectric power plants (HPPs) in Georgia demonstrate high creditworthiness and operating profit rates. The study also noted that from 2018 to 2023, the volume of bank liabilities issued to the energy sector doubled, occupying a significant share of the total business credit portfolio. Loans in the energy sector have an average maturity twice as long as those in other sectors, issued at similar interest rates. Additionally, the energy sector portfolio is characterized by one of the lowest credit risks, despite relatively high concentration. The research highlighted Georgia's highly efficient electricity generation from hydroelectric power stations, attributed to the country's favorable landscape, climatic conditions, international trade opportunities, and investments made in the sector.

 

Deputy Minister of Economy and Sustainable Development Vakhtang Tsintsadze and GNERC Chairman David Narmania also participated in the event.

The meeting concluded with a question-and-answer session, during which stakeholders discussed sectoral needs, challenges, and potential solutions.