Shuakhevi HPP – The largest energy project in Georgia
On Tuesday, 19 March, at 7 p.m. the Sheraton Hotel Batumi hosted the financial close of the Shuakhevi Hydropower Project and the signing of the Build-Own-Operate Direct Agreement with the Government of Georgia.
Speeches were made by Chief Executive Officer of AGL Bjorn Brandtzaeg, Prime Minister of Georgia Irakli Garibashvili, Minister of Energy of Georgia Kakha Kaladze, Chief Executive Officer of Tata Power Anil Sardana, Manager of Infrastructure for East Asia Pacific at IFC Wiebke Schloemer, Director and Head of Power and Energy Utilities Banking at EBRD Nandita Parshadi, Deputy Director of General ADB Michael Barrow, and Chairman of Board of Clean Energy Invest Baard Mikkelsen.
AGL is the largest investment in Georgia’s in energy sector to date. The project will develop the 187-megawatt Shuakhevi hydropower scheme. Electricity from the power plant will be generated starting in autumn of 2016. The Shuakhevi hydropower plant will satisfy Georgia’s electricity demand during winter, thereby reducing its dependence on imported fuel and increasing its renewable energy output by 450 GW/h annually.
AGL is a joint venture between India’s Tata Power (40 percent), Norway’s Clean Energy Invest (40 percent), and IFC, a member of the World Bank Group (20 percent).
The project is the first hydropower project in Georgia certified by the United Nations Framework Convention on Climate Change for carbon emission reductions. It is expected reduce greenhouse gas emissions by more than 200,000 tons per year.
The project employs approximately 600 Georgians, most recruited from local communitites. AGL is contributing to local budget of Adjara by paying approximately 3.2 million Georgian lari in property tax in 2015, five million in 2016, and eight million from 2017 onwards
The total investment by the Project is estimated at 400 million US dollars.
The Project will also foster cross-border electricity trading by exporting electricity to Turkey through a Black Sea Transmission Line financed by EBRD.
The company sets a high standard of social responsibility and is actively supporting the development of the region, with approximately six million lari allocated to local social projects.