Page 60 - GEORptJun22

Hydropower plants association complains about level of activists’ opposition in Georgia
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 of both parties.
The project had proved controversial triggering protests led by the grassroots Save the Rioni Valley movement since late October, leading to government promises to revisit the project.Critics of the project, including several major opposition parties, have claimed that the environmental impacts and potential safety of the project had not been adequately studied, and that it threatened the valley’s unique local ecosystem.
Margebadze complained about small hydropower plants facing public opposition and said that the risk of broken dams flooding villages is nonexistent. However, the green activists are pointing to other kinds of threats in the environmental sphere.
9.1.12 Utilities sector news
€40mn EBRD loan and €13mn EU grant for Georgia energy efficiency
A €40mn EBRD loan and a €13mn grant from the EU will be used in Georgia to reduce energy consumption, mostly in schools, contributing to overall energy security and protection of the environment. Germany's national development bank KfW will also be providing additional financing.
“Lower utility bills, a cleaner environment and greater energy security benefits us all,” explained Catarina Bjorlin Hansen, EBRD Regional Director for the Caucasus. “Together with the European Union and KfW, we are directing our efforts to make schools in Georgia greener and to provide comfortable learning environments for students.”
Sigrid Brettel, Head of Cooperation at the Delegation of the European Union to Georgia, commented: “Thanks to our joint programme with the EBRD and KfW, the EU is helping to scale up energy efficiency renovations in schools across Georgia. In addition to lower energy bills and CO2 emissions, this investment will bring healthier conditions for students, new jobs and improved
60 GEORGIA Country Report June 2022 www.intellinews.com