By Swann Bigot, legal expert and consultant in international affairs, for Eurasia Network – January 29, 2017


Qartli Wind Farm“, Georgia, October 2016 –

Photo credit : Georgian Energy Development Fund.

A selection of investors in order to establish a Joint Venture Company for the development and the construction of a 150 MW wind power plant has been announced by the Georgian Energy Development Fund on January 18. The wind farm will be built at 180 kilometers west of Tbilisi, nearby the industrial city of Zestafoni.[1]

The power generation is planned to amount to 478.2 million kWh. The project named “Zestafoni Wind Power Plant” will gather 50 turbines each with a capacity of 3 MW. The investment cost of the project is estimated at USD 227 million.

The total share capital of the Joint Venture Company should amount to USD 400,000.

Interested persons have the opportunity to submit the necessary documentation until 18:00 of February 20, 2017. Final winner of the tender will be announced on February 27, 2017. The Shareholders Agreement will be concluded on March 6, 2017.[2]

This is the second wind power project in Georgia.

The first wind power plant opened in October 2016

The first 20.7 MW wind farm in the former Soviet Republic entered into service in October 2016, in Gori municipality, at 70 km east of Tbilisi.

The “Kartli wind power plant” is made of 6 turbines each with a capacity of 3.45 MW, all produced by the Danish manufacturer Vestas.

The plant generates 88 million kWh of electricity, which is quite enough for providing with energy about 18 to 20 thousand families.[3]

The plant will contribute to cover the higher demand in electricity during winter while one-third of the power generated is expected to be sold to Turkey.[4]

It is operated by Kartli Wind Farm, a joint venture between the state-owned Georgian Energy Development Fund and the Georgian Oil and Gas Corporation.

The construction has cost USD 34 million. The project has received USD 24 million from the European Bank for Reconstruction and Development (EBRD) in the framework of a loan agreement signed on January 11, 2016.

In the future, the capacity of the Kartli wind power plant could be increased up to 300 MW.[5]


Qartli Wind Farm” in Georgia, September 2016 –

Photo credit : Georgian Energy Developement Fund

Georgia develops renewable energy sources

These wind power initiatives are the result of the Georgian government’s strategy for the development of renewable energy sources and the use of wind energy to generate electricity during winter when the demand is higher. In 2015 Georgia had to import 0.7 TWh during winter months.[6]

The Georgian energy strategy for 2016-2025 plans to implement several projects of wind power plants across the country.[7]

The EBRD supports Georgia in promoting renewable energy sources in order to enhance the energy security and contribute in mitigating the climate change. The Bank has already invested USD 336 million in Georgia’s energy sector and has helped to attract foreign investors.[8]

Georgia benefits from promising renewable energy sources such as wind, solar and hydropower which can provide the country with substantial additional capacity of energy, stressed the Prime Minister Giorgi Kvirikashvili during the opening ceremony of the Kartli Wind Farm last October.[9]

Indeed, Georgia has huge wind power potential from several mountainous regions and enjoys high solar potential with 250-280 sunny days in a year, which is approximately 6000-6780 hours per year according to the Ministry of Energy. [10]

Moreover, only 25% of total hydro potential is used according to a study published in December 2016 by KPMG.[11]

The Georgian Energy Development Fund was created in December 2010 by the Georgian government in order to develop and implement priority projects in the sphere of renewable energy sources – wind, solar and hydropower – and attract foreign investments.[12]

While the energy sector receives new investments for renewable energy projects, the Georgian economic growth remains steady with 2.9% expected for 2016 and 4% for 2017.[13]

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Sources :

[1] GEDF, “Georgian Energy Development Fund announces Selection of Investor for development of Zestaponi WPP Project”, Investors Page, January 18, 2017 : ;

[2] Ibid ;

[3] Kristine Gamtenadze, « The first wind power plant being built in Georgia”, Georgian Journal, July 28, 2016 : ; “В Грузии построена первая ветряная электростанция”, ИА REGNUM, 06.10.2016 : ;

[4] Loretta Martikian, “EBRD supports first wind farm in Georgia”, October 6, 2016 : ;

[5] Олег Прошкин, « В Грузии намерен построить ветропарк мощностью 150 МВт », 24news, 24.01.2017 : ;

[6] Invest in Georgia, «Инвестиционные возможности : Энергетика» : ;

[7]  « В Гори открылась первая в Грузии ветряная электростанция », Новости-Грузия , 06.10.2016 : ;

[8] Loretta Martikian, “EBRD supports first wind farm in Georgia”, October 6, 2016 : ;

[9]  « В Гори открылась первая в Грузии ветряная электростанция », Новости-Грузия , 06.10.2016 : ;

[10] Ministry of Energy of Georgia, “Investment Opportunities in Energy Sector of Georgia”, 2013 : ;

[11] KPMG, “Power sector overview”, December 2016 : ;

[12] Georgian Energy Development Fund, “Background” : ; Georgian Energy Development Fund, “What we do” : ;

[13] Margarita Antidze, Alexander Smith, “Georgia forecasts 2017 GDP growth of 4 pct in draft budget”, Reuters, October 5, 2016 : ; “Рост ВВП в Грузии в ноябре составил 2%”,, 30.12.2016 : ; “В ноябре экономический рост Грузии составил 2%”, Новости-Грузия, 30.12.2016 : ;