Georgia PM's blessings to mark Financial Closure of Tata Power’s Georgia Hydro Project

Tata Power, Clean Energy Invest AS Norway (Clean Energy) and IFC InfraVentures (IFC), completed financial closure for its 187 MW Adjaristsqali hydro project in Georgia. The project is being financed by IFC, ABD and EBRD. This landmark project will help Georgia to tap its hydropower potential. IFC, along with ADB and EBRD, has arranged the largest-ever private hydropower investment in Georgia of $400 million through project financing. Adjaristsqali Georgia is a joint venture between India’s Tata Power and Norway's Clean Energy Invest (40 percent each), and IFC (20 percent), this project will help Georgia achieve energy self-sufficiency. The three lenders are providing a total of $250 million of long term project financing for the project.

This project is in line with Tata Power's commitment to develop 450 MW of new Hydro Power Project this year as part of its centenary year celebrations theme of “Invisible Goodness.” The Shuakhevi plant aims to satisfy Georgia’s electricity demand during winter, reducing dependence on imported fuel and increasing renewable energy output. It will also foster cross-border electricity trading at other times of the year by exporting electricity to Turkey through a transmission line financed by European Bank for Reconstruction and Development (EBRD). The project will benefit local communities by helping create jobs, boosting municipal incomes, and upgrading area roads.

The project is the first hydropower project in Georgia certified by the United Nations Framework Convention on Climate Change for carbon emission reductions. It is expected to produce about 450 gigawatt hours of power annually and reduce greenhouse gas emissions by more than 200,000 tons per year. The project will develop the 187-megawatt Shuakhevi hydropower scheme, consisting of the Shuakhevi and Skhalta hydropower plants located in the Adjara region, in southwest Georgia. Work on the Shuakhevi plant began in September 2013 with a target to start producing electricity in 2016.

Speaking on the development, Mr. Anil Sardana, CEO and Managing Director, Tata Power, said, “We would like to thank the Government of Georgia for their support in exploring Georgia’s huge hydropower potential. According to our founder, Shri Jamshetji Tata’s, vision that ‘clean, cheap & abundant power is one of the basic ingredients for the economic progress of a city, state or a country. We are expanding our footprints globally and to achieve that we are scouting newer clean and green power projects in different geographies, in addition to investing in implementation of eco-friendly technologies to continuously reduce our carbon footprint and join the global initiatives to combat climate change. We are grateful to our strategic partners, Clean Energy and IFC InfraVentures, for putting us on a strong footing for this project and also thankful to all our partners who are helping us realize our global dream to come to life. We are confident that the global potential will be realised with our exemplary clean governance and speed of action.”

Tata Power, came on board in 2013 for the Georgia project. The Company, as part of its sustainability initiatives, is focusing on reducing its carbon footprint through “clean and renewable energy” generation. It remains committed to generating 20% - 25% of its total generation capacity from clean energy sources. Reiterating the commitment towards renewable energy, Tata Power recently commissioned 126 MW Dagachhu hydro project in Bhutan. The company now has a combined hydro capacity of 576 MW in India and Bhutan.