Strengthening Project Development of the Energy Sector (Subproject 3)

approved

The ensuing Energy Storage and Green Hydrogen Development project aims to improve energy security, reduce Georgia's reliance on grid stability support from neighboring countries, and pave the way for greater private sector participation in green energy development. The project will enhance electricity grid's ability to integrate higher level of renewable energy by adding a 200-megawatt (MW)/200-megawatt-hour (MWh) battery energy storage system (BESS) to its transmission network at the Ksani substation near Tbilisi. The project will also improve the legal and regulatory framework necessary to recognize and include storage technologies like BESS and green hydrogen into the network. This will facilitate private sector investments in renewable energy penetration as well as the development of larger BESS facilities and green hydrogen. The project supports the government's goals of reforming the energy sector, emerging as a regional platform for trading clean energy, and improving the efficiency of the transmission network, as reflected in the Asian Development Bank's (ADB) country partnership strategy for Georgia, 2024-2028. The ensuing project has been approved by ADB on 16 April 2025, and the loan was signed on 3 May 2025.The technical assistance (TA) subproject 3 (hereafter the TA subproject) will support the quality implementation of the Output 3 (Enabling environment to encourage development of green hydrogen with private sector participation created) of the ensuing project. The funding for the TA subproject is provided through the multisector TA cluster Strengthening Sectors to Develop a Green and Inclusive Regional Gateway.