BAKU, Azerbaijan, July 23. The European Bank
for Reconstruction and Development (EBRD) is considering providing
a loan of up to $19.6 million (17.2 million euro) to finance a
solar power project in Georgia with a total capacity of 52.8
MW.
According to the bank, the financing may be provided to the
companies Kakhetis Mze LLC, Mzis Veli LLC, Veli LLC, and Alaznis
Mze LLC. The project is currently in the preliminary appraisal
stage and is scheduled for consideration by the EBRD Board of
Directors on September 9, 2026.
According to the report, the loan funds will be used to create
the largest utility-scale solar power plant in the country in
Georgia. The project includes the construction of new solar power
plants with a capacity of 40.6 MW, as well as the refinancing of
bridge financing from a local bank for five solar power plants with
a total capacity of 12.2 MW that are already in operation.
The bank said that the project will contribute to increasing
Georgia’s renewable energy production, reducing the country’s
dependence on hydropower, and diversifying its electricity
generation.
According to the EBRD, the project will generate approximately
70.6 GWh of electricity annually once operational and will reduce
carbon emissions in the country by approximately 16,300 tons per
year. At the same time, the project will support competition by
expanding private sector participation in the energy market.
The bank’s report pointed out that the project includes a total
of 10 solar power plants. Five of them are scheduled to be
operational in 2025, while the construction of five more is
ongoing. As a result of the environmental and social assessment,
the risks of the project were determined to be limited, manageable,
and in line with the EBRD’s environmental and social
requirements.
The report noted that the project is considered to be in line
with both the climate change mitigation and adaptation goals of the
Paris Climate Agreement. 100% of the financing planned to be
allocated by the EBRD is classified as “green finance”.
The total cost of the project is $19.64 million, and the loan
planned to be allocated by the EBRD covers the full financing of
the project.
