With the support of the European Bank for Reconstruction and Development (EBRD) Georgia’s is preparing to create the country’s first wind farm and utilise its wind energy potential.
The EBRD is considering providing up to a $25 million USD senior loan to a special purpose vehicle established in Georgia for the sole purpose of constructing and operating a wind power plant (WPP) in Gori, a city in the eastern Georgia.
The inaugural wind power plant will include two turbines and is expected to be operational by next spring. The plant will be 20 MW and expected annual generation 85 GWh. The total estimated cost of the project is $35 million USD.
Georgia is having success in developing domestic renewable energy sources, thus reducing imports of power generated by fossil fuels.? After investing €312 million in hydropower generation, we are hoping to make another renewable source – wind –attractive for investors,” said EBRD Managing Director for Energy and Natural Resources, Riccardo Puliti.
During the 2015 EBRD Annual Meeting in Tbilisi, the Bank and the Government of Georgia today have signed a mandate letter setting out their readiness to cooperate on the first wind farm project in the country.
A mandate letter is an initial agreement which will be followed by work on the project by all parties. The EBRD’s Board of Directors is expected to vote on the project later this year.
The Gori WPP will support the government’s strategy to foster low carbon generation and cover the country’s seasonal demand in the winter period. The Georgian Energy Development Fund, the government agency in charge of boosting renewable energy investments, is now actively working with the EBRD on the project,” said Georgia’s Deputy Prime Minister and Minister of Energy Kakha Kaladze.
In total, the EBRD has invested over €2.6 million in Georgia’s economy, of which over 20 percent has been in energy. In addition to €312 million invested in renewable energy generation, the Bank has also invested over €210 million in transmission and distribution projects, which opened export markets for Georgia’s renewable energy and attracted private investors to the sector.