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While Varhelyi didn't specifically comment on these matters, he did tell Capacity that domestic and foreign investment would both be key to meeting the €3.9bn investment potential.
He said: "We would expect the investment to come from within Georgia but also from other countries. The EU contribution will be a combination of blending grants, loans and in particular the guarantees under European Fund for Sustainable Development (EFSD+). This must be complemented by private sector or sovereign debt investments.
"We are working together with Georgia and all our partner countries to develop a pipeline of project proposals. Legal certainty, rule of law and trust in the judiciary are equally key elements to encourage (foreign) investment."
9.1.11 Renewable energy sector news
Georgia to begin industrial production of wind power plants
Hydropower plants association complains about level of activists’ opposition in Georgia
Industrial production of wind power plants in Georgia is expected to begin following the signing of a memorandum between Georgia's Ministry of Economy, the State Military Scientific Centre Delta and the Georgian Wind Energy Association on 23 March. Production of wind energy power plants, creation of new jobs, integration of wind power into the energy infrastructure and generation of electricity is included in the agreement, the economy ministry said.
The state body, Delta and the association will also make efforts to find potential investors interested in financing and developing production of components of wind power plants on the territory of Georgia, with the manufacturing of wind generators and their components set to be located on an industrial area owned by Delta. Negotiations with the leading companies producing wind power generation equipment, as well as with parties interested in purchasing such equipment and its components, is also included in the memorandum.
A declaration was signed between the Georgian Economy Ministry and the German Development Bank (KfW) on the development of clean and renewable energy in Georgia in November 2021. The deal intended to assess the potential and benefits of green hydrogen, solar energy, water and wind in the country. It also involved undertaking a pilot project providing benefits to the country’s economy, and assisting the development of clean and renewable energy.
A 50 MW wind power plant near the village of Nigoza in eastern Georgia is planned to begin operations in 2022.
Most of the hydropower plant (HPP) projects in Georgia, with up to $4bn of investments, have by now been suspended due to protests, according to Giorgi Margebadze, executive director of the Association of Small and Medium Sized HPPs.
He is arguing in favour of small hydropower plants as they are less harmful to the environment—something which, however, appears to not be supported by the evidence. Small HPPs are likely to cause, per kilowatt of power generated, no less significantly adverse environmental impacts than large hydropower systems and some other conventional sources of energy, experts says. Georgia's government sees HPPs as a way to consolidate the country's energy security as domestic power consumption is likely to rise with economic development. It recently had to put on ice a major HPP project developed by Turkey's Enka Renewables after some 170 days of protests mounted by green organisations. The company announced on September 21 that it had pulled out of the Namakhvani project due to "breaches of contract" by the Georgian Government and force majeure, an event or circumstance beyond the control
61 GEORGIA Country Report September 2022 www.intellinews.com