The Asian Development Bank (ADB) has approved a $104-MM loan to help enhance Georgia’s energy security. Under ADB’s Energy Storage and Green H₂ Development Project, the bank will help Georgia create its first-ever energy storage facility and explore green H₂ development possibilities in the country.

The project will enhance the country’s electricity grid's ability to integrate a higher level of renewable energy by adding a 200MW/200MWh battery energy storage system (BESS) to its transmission network at the Ksani Substation near Tbilisi. The facility will improve energy security, reduce Georgia's reliance on grid stability support from neighboring countries, and pave the way for greater private sector participation.

“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.”

Increasing electricity consumption, changing precipitation patterns, and water availability pose substantial risks to hydroelectric power, which the Georgian energy sector heavily relies on. Advanced technologies like BESS and green H₂ are critical to addressing climate change risks and providing sustainable energy to the population. 

ADB also approved a grant-based Technical Assistance (TA) of $400,000 to support Georgia’s efforts toward development of green H₂. The TA will assist the government in identifying the H₂ potential and necessary requirements for encouraging private sector participation.

“We see strong potential for developing green H₂ in Georgia,” said ADB Principal Energy Specialist Adnan Tareen. “Surplus energy generated during peak seasons can be converted to green H₂ and traded on EU energy markets, strengthening Georgia’s energy system and creating new economic opportunities.”

The project will introduce improvements in the legal and regulatory framework necessary for the inclusion of storage technologies like BESS and green H₂ into the network. This will facilitate private sector investments in renewable energy penetration and the development of larger BESS facilities and green H₂.

The project supports the Georgian 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 ADB’s Country Partnership Strategy for Georgia, 2024-2028.

The Ministry of Economy and Sustainable Development will oversee the project execution and implementation of policy reforms envisaged under the project, while the Georgian State Electrosystem will act as the Implementing Agency.

ADB has supported Georgia since 2007 and is one of the country’s largest multilateral development partners. ADB’s loans, grants, and technical assistance to Georgia total $5 B. ADB’s five-year country partnership strategy with Georgia aims to help the nation develop into a green and inclusive regional gateway while supporting sovereign and private sector investments, policy reforms, capacity building, climate-resilient infrastructure, and regional integration.