Georgia-based TBC Bank, the European Union (EU), and the European Bank for Reconstruction and Development (EBRD), have partnered to provide financial support for expanding renewable sources of energy in Georgia.
The trio institutions will provide $14.3m to Rustavi Group, for the construction of a medium-size hydropower plant that will operate on the Lukhuni River in northern Georgia.
For the construction of Lukhuni 2 hydropower plant, EBRD and TBC Bank will be contributing $5.6m and $8.7m, respectively.
EU will support this transaction through a risk-sharing facility based on a guarantee mechanism.
With an installed capacity of 17.2MW, the Lukhuni 2 hydropower plant is expected to annually generate 86.3 GWh.
During summer, the plant will be eligible to export electricity to Turkey, and in winter it will provide electricity to northern Georgia.
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By GlobalDataThe power plant construction project is expected to reinforce energy security in the country and will also increase the competitiveness in the energy market.
Additionally, the investment from these financial institutions is expected to boost the development of the Racha region through the creation of new jobs.
The project is in line with the strategic priorities of the EBRD as well as the government of Georgia to develop renewable energy generation.
Image: TBC Bank, EBRD and EU to support renewable sources expansion in Georgia. Photo: courtesy of European Bank for Reconstruction and Development.
