This paper comprises two parts. In the first section the implemented reforms and achievements as well as existing challenges of Georgian energy sector are discussed from modern and historical perspective. Paper is focused on one of the key acute issues such as energy balance, level of electrification and gasification, utilization of energy resources, energy efficiency, environment and regulation of sector.

The second section envisages the essential issues and activities necessary for the development of Georgian energy sector, in particular, energy security, optimization of energy balance, establishment of competitive energy market, energy saving, environment protection and external cooperation. Justified opinions and proposals needed for the improvement of energy sector regulation are also envisaged by this paper.