EBRD to back Georgian grid, renewables with EUR-25.2m loan

Oct 29, 2013 - The European Bank for Reconstruction and Development (EBRD) said today it had agreed to lend EUR 25.2 million (USD 35m) to the Georgian State Electrosystem (GSE) for transmission grid upgrades and renewables.

More specifically, the loan to the state-run electricity transmission company will allow Georgia to improve the stability and reliability of its power grid, thus making it easier to trade in regional electricity and develop renewable energy projects. The country has significant hydropower reserves and a strategic location thanks to which it can connect to Russia and Turkey, but Georgia needs to ensure that its transmission network is reliable enough to take advantage of these factors, the lender said.

The EBRD further explained that the EUR-25.2-million loan is a portion of a bigger project that will fund a new substation in Jvari and the construction of transmission line from Kavkasioni to Jvari and Khorga.

So far, the EBRD has committed more than EUR 250 million in financing for Georgia’s power sector.

(EUR 1 = USD 1.379)

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