Georgia will connect South Caucasian countries with electricity
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Georgia is becoming an "energy bridge” connecting South Caucasian countries with a reliable electricity supply.
Georgia, as chair country of the Energy Charter, is also considered a flagship country in the Caucasus region to support cooperation in the energy field. Our primary goal is to strengthen regional cooperation through trade in electricity,” Georgia’s Energy Minister Kakha Kaladze told more than 100 guests at today’s Energy Charter Conference.
As of today Georgia had completed construction of a 500 kW transmission line to Azerbaijan, had rehabilitated a 500 kW transmission line to Russia and planned to operate a 500 kW transmission line to Armenia, said Kaladze.
From all these planned and existing transmission lines, Georgia could connect South Caucasian countries’ energy systems and become an "energy bridge” in the region, he stressed.
Looking ahead, after implementing the Black Sea Transmission Network (BSTN) project now it was time to create a regional energy market together with Russia, Azerbaijan and Armenia, said Kaladze.
The BSTN project outlined rehabilitation and expansion of the existing transmission system to facilitate electric power transmission from Georgia to Turkey.
The 500/400/220kW Akhaltsikhe substation was officially commissioned on December 10, 2013. Construction of the substation was implemented under the framework of the BSTN project, which alongside this facility included several other important components –construction and rehabilitation of overhead transmission lines Vardzia 500 and Zekari 500 that interconnected Akhaltskhe, Zestaponi and Gardabani substations, as well as the construction of a new 400 kV overhead line from Akhaltsikhe substation to the Georgia-Turkey border.
The total contract price of the Akhaltsikhe substation and back-to-back station amounted to €158.8 million. The BSTN project was financed using €80 million loans each from the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB), and a €100 million loan from the German Reconstruction Credit Bank KfW.
The Government of Georgia provided a co-financing contribution of €53 million, and €8 million was granted by the Neighborhood Investment Facility (NIF) of the European Union (EU).
Works commenced on September 1, 2010 and were completed in April 2013. Commissioning tests of the back-to-back station were performed at the end of November 2013.
Georgia was the first country in the Caucasus region to install a high-voltage direct current station (HVDC).
More than 100 high officials from 50 countries are gathering in Georgia’s capital Tbilisi to discuss ways to strengthen regional and global energy security, minimise damage to the environment, develop effective energy markets and create a favorable investment climate.
Georgia, Iran, Armenia and Russia are deepening cooperation in the energy sector by increasing the efficiency of the countries electrical systems.
Georgia’s Defence Minister Tinatin Khidasheli is paying a two-day visit to neighbouring Armenia. Yesterday she met the country’s President Serzh Sargsyan, Prime Minister Hovik Abrahamyan, Foreign Minister Edward Nalbandian and Defence Minister Seyran Ohanyan.
Using Georgia to transit electricity between other countries in the region is a "historic event in Georgia’s energy sector”.
Georgia promotes trade advantages of its electricity
Georgia’s capital Tbilisi is hosting the Cross-Border Electricity Trading Summit, bringing electricity suppliers together to discuss how to create a competitive trading environment for the electricity produced in Georgia.
Georgia has acknowledged it owes Turkey for electricity it received over seven years in the early 1990s and says it will repay Turkey over a period of 20 years until the debt is cleared.
An electrical substation in Georgia’s capital is being completely rehabilitated to protect the electricity supply to people living in the outskirts of Tbilisi.
Georgia is today hosting two premier energy events where international power professionals can meet and share information on the challenges facing the energy industry and discuss solutions for advancing Caucasian energy future.
International financial institutions are pledging to offer Georgia €735 million to support the country as it implements much-needed upgrades to its power transmission system.
People living in Georgia’s capital Tbilisi and in the country’s Kvemo Kartli region will now enjoy a more reliable electricity supply thanks to the new Marneuli 500kV substation, which was officially opened today.
Germany is supporting Georgia in expanding its power network and modernising the infrastructure by providing €125 million in concession credit.