On 10 January, the European Bank for Reconstruction and Development announced the allocation of a €28 million loan for the modernisation and rehabilitation of the Enguri hydro power plant, the largest electricity supplier in Georgia.
An additional €7 million grant was allocated by the European Union and a €450,000 technical cooperation grant was provided by the Austrian DRIVE fund. These grants will support the establishment of a coordination initiative covering the Enguri river valley and assist Georgia in its alignment with EU standards.
The Enguri hydro power plant is located in the Enguri river basin, which supplies 40 per cent of Georgia’s electricity and significantly contributes to economic development and energy security.
It is expected that these investments will ensure the continued safe operation of the plant, increase overall electricity production, enable climate resilience upgrades and reduce CO2 emissions. It also allows Georgia to reduce its dependence on electricity from fossil fuels and reduce the import of expensive natural gas and increase energy security by replacing natural gas with renewable domestic hydropower.