Akhalkalaki Hydropower Plant has been Commissioned

Today, November 5, 2022, the official opening ceremony of the Akhalkalaki Hydropower Plants (Akhalkalaki 1 and Akhalkalaki 2) took place. The ceremony was attended by the Deputy Minister of Economy and Sustainable Development of Georgia Romeo Mikautadze, State Representative of Samtskhe-Javakheti region Besik Amiranashvili, and local government representatives. Also present were: Managing Director of Caucasus Clean Energy Holding Mikheil Nibladze, Senior Managing Director of the CCEH investor fund Alexander Benard, and Vice-President of Lansvirkjun Ricky Rikardsson.

Akhalkalaki HPP is a small run-of-river hydropower plant located on the Paravani and Korkhi rivers, in the Samtskhe-Javakheti region, Akhalkalaki Municipality, near the villages of Diliska and Korkhi. The hydropower plant was developed by Caucasus Clean Energy Holding together with Lansvirkjun. Lansvirkjun is Iceland's largest state-owned energy producing company, and the Akhalkalaki Project is its first investment abroad.

Akhalkalaki HPP, with an installed capacity of 9.1 MW, is the largest of the hydropower plants commissioned in Georgia in 2022, with a 40% share of the total commissioned installed capacity. With an output of 50 million kilowatt hours, its share in the total generation of small HPPs would be  6%, and 0.5%. according to the data of 2021.

"Ensuring the continuous energy security of Georgia is a priority of the country's economic policy. Greater development of renewable energy resources will contribute to the achievement of this strategic goal. Since the largest share of local electricity production comes from hydropower, the development of this sub-sector of energy is of particular importance. Moreover, I am talking not only about large regulating stations, whose contribution to energy security is important, but also about small and medium-sized energy facilities. They contribute not only to the development of the industry, but also have a positive social impact on the villages where such stations are built. During the construction of these facilities, the public and private sectors jointly implement social projects of local importance, intended for the residents of settlements located directly in the vicinity of the power station - this can be a sports hall, rehabilitation of the drainage system, construction of a pumping station and many other things. Most importantly, during the construction and subsequent operation of such facilities, jobs are created, many of which are intended for local residents. Thus, the construction of energy facilities at the level of municipalities and communities is related to significant social benefits" - said the Deputy Minister of Economy and Sustainable Development of Georgia, Romeo Mikautadze.

The project was developed in accordance with best industry practice, with a focus on positive environmental and social impacts. Social projects were selected in three villages near the project area, and all projects were implemented according to the internationally recognized IFC and EIB environmental and social issues management standards, simultaneously with the construction of the HPP. The projects included rehabilitation of a sports hall in the village of Korkhi, a water pumping station in the village of Orja, and a drinking water pipe in the village of Diliska. 835 families, 3339 people, living in three villages directly benefit from these projects.

"We are creating a precedent of building modern hydro power plants according to European standards. Our investment brings the development of infrastructure and job creation, along with the introduction of knowledge, qualifications, western experience and compliance with safety norms and a work culture that presents even more opportunities for the local population to improve their living conditions" - said Mikheil Nibladze, director of CCEH.

CCEH has been operating in Georgia since 2015, developing small and medium hydropower plants in the country. Currently, the fund's portfolio includes seven operating hydropower plants and two under construction. The total investment of Caucasus Clean Energy Holding is intended to be 150 million US dollars. The current invested amount is 75 million US dollars.