Georgia Welcomes Country's Largest HPP Ever

Georgia has officially welcomed the largest Hydroelectric Power Plant (HPP) in the country, Dariali HPP. The HPP is situated in northeast Georgia, in Kazbegi Municipality on the river Tergi, 160 km away from Tbilisi.

The total cost of the project is estimated at $123 million. In August 2014, the company Dariali Energy JSC and the European Bank for Reconstruction and Development (EBRD) signed a loan agreement for up to $80 million for financing the development, construction and operation of Dariali HPP, which comprises the first project financing and first successful public-private partnership project in the Georgian energy sector.

The state contribution for financing the project is 23 percent. The capacity of the Dariali HPP is 108 Mega Watts and its expected annual electricity output is 510 GWh.

The HPP was opened on Saturday by Prime Minister of Georgia, Giorgi Kvirikashvili, the EBRD Director for the Caucasus, Moldova and Belarus, Bruno Balvanera, and members of the Georgian government.

The project is also the first energy project to deliver carbon neutral construction in Georgia. It includes a reforestation component which targets the full negation of all greenhouse gas emissions associated with the project over its lifecycle through the capture of carbon in vegetation.

The construction of the HPP was launched in 2014 and its construction created 420 jobs for local residents. After it becomes operational, around 70 permanent jobs will become available for locals.

The PM noted that the HPP is a powerful plant and distinctive in its design, which has laid the foundations for construction of other power plants in Georgia. "It is a unique plant in the history of independent Georgia. It is the largest hydroelectric power plant not only in Georgia, but also in the region,” he added.

Kvirikashvili noted that energy security and independence are the most important political and economic factors at present. “I am very pleased that we were able to build a plant of this scale in Georgia,” the PM said.

The Deputy Prime Minister and Energy Minister, Kakha Kaladze, noted that the Georgian energy sector has never seen so much development and so many revolutionary steps as in recent years. “Dariali HPP will contribute to the country's economic development, as well as to its energy independence,” Kaladze stated.

He also added that the new HPP will reduce the country’s dependence on imported energy in the winter months by 200 million GWh annually.

The Finance Minister and the first Vice-Premier, Dimitry Kumsishvili, pointed out that Dariali HPP will bring GEL 2.5 million to the local budget as property tax alone each year.

Thea Morrison