The Asian Development Bank (ADB) has approved a $104 million loan to help enhance Georgia’s energy security.
A key component of the project is the installation of a 200MW/200MWh Battery Energy Storage System (BESS) at the Ksani Substation near Tbilisi. Scheduled for implementation in 2025, this facility will enhance grid stability, reduce Georgia’s dependence on external energy support, and enable greater use of renewable energy sources. The project will also foster private sector involvement in the energy market.
“ADB has been a long-standing partner in supporting Georgia’s efforts to strengthen its energy sector,” said ADB Country Director for Georgia Lesley Bearman Lahm. “This new project marks another significant step toward enhancing the country’s energy independence. With abundant clean energy potential and ambitious development goals, Georgia is well positioned to unlock greater economic benefits from its renewable resources.”
Georgia’s energy sector faces challenges from rising electricity consumption and climate-related risks, such as changing precipitation patterns affecting hydroelectric power, a major energy source. The BESS and green hydrogen technologies will help address these issues, ensuring a stable and sustainable energy supply for the population.
To support green hydrogen development, ADB has allocated a $400,000 grant for Technical Assistance (TA). This funding will help the Georgian government assess hydrogen production potential and create conditions to attract private investment. “We see strong potential for developing green hydrogen in Georgia,” said ADB Principal Energy Specialist Adnan Tareen. “Surplus energy generated during peak seasons can be converted to green hydrogen and traded on EU energy markets, strengthening Georgia’s energy system and creating new economic opportunities.”
The project includes updates to Georgia’s legal and regulatory framework to support the integration of BESS and green hydrogen technologies. These reforms, overseen by the Ministry of Economy and Sustainable Development, will encourage private sector investment and facilitate the expansion of renewable energy infrastructure. The Georgian State Electrosystem will serve as the implementing agency.
This initiative aligns with Georgia’s goals of modernizing its energy sector and becoming a regional hub for clean energy trade. It is part of ADB’s Country Partnership Strategy for Georgia (2024–2028), which emphasizes sustainable and inclusive growth. Since 2007, ADB has provided Georgia with $5 billion in loans, grants, and technical assistance, making it a key development partner for the country.
