A new hydroelectric power plant (HPP) will be built in northern Georgia to increase the country's power generation capacity.
The Lukhuni 2 HPP will be built on the Lukhuni River in Georgia’s Racha region and will benefit the citizens of Georgia by reinforcing energy security as well as by boosting the development of the Racha region through the creation of new jobs.
The Lukhuni 2 HPP will have an installed capacity of 17.2 MW and an expected annual generation of 86.3 GWh.
During the summer period the power plant will be capable of exporting electricity to Turkey, while in winter it will play a key role in providing electricity to northern Georgia.
The project is in line with the strategic priorities of the Government of Georgia and the European Bank for Reconstruction and Development (EBRD) to develop renewable energy generation and infrastructure in Georgia.
For this purpose, the EBRD has teamed up with one of the leading banks in Georgia, TBC Bank, and the European Union (EU) to support the expansion of renewable sources of energy in Georgia.
The institutions are providing a financial package of $14.3 million to local Rustavi Group LLC for the construction of a medium-size HPP in northern Georgia.
The EBRD is supporting the project with a $ 5.6 million loan and TBC Bank is contributing $8.7 million to the project.
Meanwhile, the EU is backing this transaction through a risk-sharing facility based on a guarantee mechanism that makes it possible to increase the amount of financing beyond the amounts that would be available without a guarantee of this kind.