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Kakha Kaladze

Energy Sector Achievements and Challenges of 2015

The year of 2015 was very important and full of challenges for the Georgian power system. Many interesting projects were carried out in both generation and infrastructure parts.

Georgia gives priority to hydropower system development. Large-scale projects should be implemented to this end. Real perspectives were outlined for many projects. Currently, the country is implementing 104 projects at various stages.

Total installed generation of all 104 projects exceeds 3 000 megawatts. The expected generation totals 12 billion kw/h and total investment value of these projects make up 4.1 billion USD.

In august 2015, the Nenskra HPP construction agreement was signed. The installed generation of Nenskra HPP makes up 280 megawatts. The annual generation will make up 1.2 billion kw/h and the project’s investment value is 1 billion USD. Nenskra HPP is considered a cornerstone for the energy security and energy independence of the Georgian power system.

This year the partnership fund and the Georgian Oil and Gas Corporation (GOGC) jointly implemented a 230 megawatt steam power plant project in the Gardabani District, the Kvemo Kartli Region. The plant’s annual generation will be 1.6 billion kwt/h. The operational efficiency of this plant twice surpasses other Georgia-based steam power plans.

If the power system of Georgia faces certain problems, the Gardabani steam power plant will ensure continuous electricity supply to the system in the shortest period and this plant will be the most stable reserves in the Georgian power system.

As to construction of hydro generation facilities, the Shuakhevi HPP construction is of crucial importance in the Ajara Region. In 2015, the construction works reached a turning point. Shuakhevi HPP will be an important facility in the Georgian power system. After the Shuakhevi Cascade starts operation, the Georgia’s domestic generation will be replenished by additional 187-megawatt installed generation and the Georgian power system will receive about 450 million kw/h electricity every year.

As a result, Georgia’s power system steadiness will considerably increase amid the growing demand for electricity in the country. It should be also noted Adjaristsqali Georgia Ltd, which is an investor company in the Shuakhevi HPP project implementation, makes special contribution to the Ajara Region development.

The Georgian government also prioritizes the universal gasification project. The current year was special in this direction. The government allocated 20 million GEL for arranging natural gas supply networks in 76 villages of 14 municipalities allover Georgia. The Government has also approved the 2015 plan for gasification works. As a result, SOCAR Georgia Gas, by the consent of the Georgian Energy Ministry, will arrange natural gas supply networks in 71 villages.

It should be also noted an alternative energy employment project was also inaugurated in 2015. This year the European Bank for Reconstruction and Development (EBRD) signed a 25 million USD allocation project for constructing the Kartli wind-driven electricity plant. Total investment value of the project is 35 million USD and its installed generation constitutes 20 megawatts. The plant will annually generate 87 million kw/h.

The year of 2015 was very interesting period and a turning point for improving the power system and energy infrastructure of Georgia. Energy infrastructure is one of the most important chains in total power system in terms of construction of transmission lines and substations.

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