The Asian Development Bank (ADB) has launched a $104 million loan to support Georgia’s efforts to strengthen its energy security, marking a significant step toward enhancing the country’s energy independence.
Key Objectives:
Enhance energy security by reducing Georgia’s reliance on grid stability support from neighboring countries.
Improve energy security by integrating a higher level of renewable energy into the electricity grid.
Pave the way for greater private sector participation in the energy sector.
The ADB Energy Storage and Green Hydrogen Development Project aims to support Georgia’s efforts to create its first-ever energy storage facility and explore green hydrogen development possibilities in the country. The project will introduce improvements in the legal and regulatory framework necessary for the inclusion of storage technologies like Battery Energy Storage Systems (BESS) and green hydrogen into the network, facilitating private sector investments in renewable energy penetration.
“ADB has been a long-standing partner in supporting Georgia’s efforts to strengthen its energy sector,” said ADB Country Director for Georgia Lesley Bearman Lahm. “This new project marks another significant step toward enhancing the country’s energy independence. With abundant clean energy potential and ambitious development goals, Georgia is well positioned to unlock greater economic benefits from its renewable resources.”
Increasing electricity consumption, changing precipitation patterns, and water availability pose substantial risks to hydroelectric power, which the Georgian energy sector heavily relies on. Advanced technologies like BESS and green hydrogen are critical to addressing climate change risks and providing sustainable energy to the population.
Green hydrogen has significant potential for reducing greenhouse gas emissions in the energy sector.
Green hydrogen can be used to power industries, transport, and homes, reducing dependence on fossil fuels.
Developing green hydrogen infrastructure in Georgia can create new economic opportunities and strengthen the country’s energy system.
The ADB also approved a grant-based Technical Assistance (TA) of $400,000 to support Georgia’s efforts toward development of green hydrogen. The TA will assist the government in identifying the hydrogen potential and necessary requirements for encouraging private sector participation. “We see strong potential for developing green hydrogen in Georgia,” said ADB Principal Energy Specialist Adnan Tareen. “Surplus energy generated during peak seasons can be converted to green hydrogen and traded on EU energy markets, strengthening Georgia’s energy system and creating new economic opportunities.”
The project supports the Georgian government’s goals of reforming the energy sector, emerging as a regional platform for trading clean energy, and improving the efficiency of the transmission network, as reflected in ADB’s Country Partnership Strategy for Georgia, 2024-2028.
Key Partnerships:
Ministry of Economy and Sustainable Development
Georgian State Electrosystem
Implementing Agency:
The Ministry of Economy and Sustainable Development
The Georgian State Electrosystem
The project will introduce improvements in the legal and regulatory framework necessary for the inclusion of storage technologies like BESS and green hydrogen into the network. This will facilitate private sector investments in renewable energy penetration and the development of larger BESS facilities and green hydrogen.
Increasing electricity consumption, changing precipitation patterns, and water availability pose substantial risks to hydroelectric power, which the Georgian energy sector heavily relies on. Advanced technologies like BESS and green hydrogen are critical to addressing climate change risks and providing sustainable energy to the population.
The ADB has been a long-standing partner in supporting Georgia’s efforts to strengthen its energy sector, and this new project marks another significant step toward enhancing the country’s energy independence. With abundant clean energy potential and ambitious development goals, Georgia is well positioned to unlock greater economic benefits from its renewable resources.
With the support of the ADB, Georgia can create a more sustainable and resilient energy system, reducing its reliance on fossil fuels and mitigating climate change risks. The project will introduce improvements in the legal and regulatory framework necessary for the inclusion of storage technologies like BESS and green hydrogen into the network, facilitating private sector investments in renewable energy penetration.
The ADB’s support for Georgia’s energy sector development is a significant step toward enhancing the country’s energy security and promoting sustainable development. With the ADB’s expertise and financial support, Georgia can unlock greater economic benefits from its renewable resources and create a more sustainable and resilient energy system.
The Benefits of the Project
The ADB Energy Storage and Green Hydrogen Development Project has significant benefits for Georgia, including:
Enhanced energy security by reducing reliance on grid stability support from neighboring countries.
Improved energy security by integrating a higher level of renewable energy into the electricity grid.
Paving the way for greater private sector participation in the energy sector.
Creating new economic opportunities for the private sector.
Strengthening the country’s energy system and reducing dependence on fossil fuels.
The project will introduce improvements in the legal and regulatory framework necessary for the inclusion of storage technologies like BESS and green hydrogen into the network, facilitating private sector investments in renewable energy penetration. The ADB’s support for Georgia’s energy sector development is a significant step toward enhancing the country’s energy security and promoting sustainable development.
The ADB’s support for Georgia’s energy sector development is a significant step toward enhancing the country’s energy security and promoting sustainable development.
