Project Factsheet
Sector: Sector: Country:
Black Sea Transmission Network (“BSTN”) Energy Georgia
Facts: • Largest power project of Georgia (290 million EUR) • Aims: o Connection with the Turkish network o Strengthening of the Georgian transmission grid • Joint-financing with EBRD and EIB • Supported by NIF (Neighbourhood Investment Facility of the European Union) • Project executing agency: o Energotrans Ltd. (subsidiary of state-owned GSE). • Status: o completed
Map of the BSTN
Background Georgia has achieved dramatic improvements in the provision of electricity services to its people over the last few years. While the annual domestic power supply and demand have been roughly in balance since 2007, there is a surplus of hydro electric capacity during the summer months. In addition, Georgia possesses tremendous untapped hydro power resources. However, for developing the hydropower potential and attracting private sector capital for these investments two critical technical issues need to be resolved. Firstly, enlargement of capacity and ensured stability of Georgia’s power transmission system needs to be reached.
Secondly, transmission capacities and market access to the most promising export markets for surplus hydropower must be achieved. Putting these facts into a regional context, the KfW funded Regional Power Transmission Extension Plan suggested the emergence of a regional power market comprising Turkey, Russia, Azerbaijan and Armenia; with Georgia serving as a transmission hub and a seasonal exporter of environmentally clean hydro power. Eventually, the plan became the blueprint of the Project. This will move the Caucasus countries closer towards Europe and will establish a regional power market which facilitates flexible and mutually profitable cross-border energy exchanges. As a result, regional energy resources can be used in an efficient and environmentally friendly way.
Project Factsheet
Objective The BSTN will have the following benefits: Enhancing the stability of the Georgian transmission network by providing surpluses Strengthening Georgia’s energy security by encouraging investments in new domestic hydropower resources and by adding power transfer capacity to Turkey Providing access for Georgian hydropower to high value markets As the initial export capacity towards Turkey will be 700 MW the project design entails an option for extension to 1,000 MW at a later stage. Accompanying investments (not part of this project) to facilitate the transit element are the new 500 kV connection between Georgia and Azerbaijan and the construction of a new 500/400 kV link between Georgia and Armenia.
KfW Entwicklungsbank committed EUR 100 million to the BSTN. It comprises a EUR 75 million loan and a nonrepayable contribution of 25 million EUR. The loan includes unfunded risk participation to the amount of EUR 20 million from OeEB, Austria’s official Development Bank. Besides KfW, EIB and EBRD (loans) and the Neighbourhood Investment Facility (NIF) of the European Union (grant) contributed substantial amounts to the project. Additional funding is provided by the budgetary resources of Georgia.
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Construction of Akhalsikhe and upgrades made to the
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Gardabani and Zestaponi substations
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Construction of 700 MW back-to-back converter station (HVDC) in Akhaltsikhe
Status The project was completed in summer 2013 according to the set time schedule. The first power transmission towards Turkey took place in autumn 2013.
Contacts
Cost and Financing (in EUR)
Phone: +995 32 550 -315 Email:
[email protected]
KfW* EBRD EIB EC NIF Georgia Total
100 million 80 million 80 million 8 million 22 million 290 million
*including EUR 20 million risk participation by OeEB
Activities •
260 km of 400/500 kV transmission lines between Gardabani, Zestaponi, Akhaltsikhe and the Turkish border
Enrico Spiller Director Sector Coordination KfW Regional Office Caucasus 4 Elene Akhvlediani agmarti 0103 Tbilisi, Georgia
Nino Shanidze Senior Project Coordinator Phone: +995 32 550 -317 E-mail:
[email protected] www.kfw-entwicklungsbank.de
