Georgia, which primarily relies on hydropower for electricity generation, is looking to enhance its energy security and diversify its energy mix.
Masdar has signed an agreement with the Georgian Energy Development Fund (GEDF) to develop a solar photovoltaic power project in the country, with a total installed capacity of 100 MW. The project, which will be jointly developed with the GEDF, will be Georgia’s largest solar power plant.
Masdar and the GEDF will jointly progress the development of the project, which is being carried out as part of a larger framework agreement signed with the GEDF this year to develop renewable energy projects in the country.
In 2021, a new programme supporting energy sector reform was launched in Georgia. The Green for Growth Fund (GGF) has joined forces with the Bank of Georgia by using a facility in Georgian lari equivalent to $20 million to promote sustainable green investments for businesses and households.
The new funding will enable the Bank of Georgia to include selective financing of small-scale renewable energy projects and energy-efficient agricultural equipment and machinery. It is estimated that the funding will contribute an additional primary energy savings of 12,800 MWh/a and CO2 reductions of 3,200 t/a.
Also, a cooperation agreement was signed between the Ministry of Economy and Sustainable Development, EU and KfW to support the Georgian Energy Sector Reform (GESR) with a budget of €8,44 million. The reform is aimed at strengthening the country’s energy security, improving the energy efficiency of public, industrial, and residential buildings, and, supporting the ongoing reforms of the electricity market which endorse the further development of renewable energy.