MINISTRY OF ECONOMY
AND SUSTAINABLE DEVELOPMENT
OF GEORGIA

First Vice Prime Minister, Minister of Economy and Sustainable Development Levan Davitashvili together with the President of Iceland, Gudni Jóhannesson visited the Akhalkalaki Hydroelectric Power Plant, which is a joint project of Georgian and Icelandic companies.

The Akhalkalaki HPP, with an installed capacity of 9,1 MW, is the largest among the hydro plants commissioned in 2022 in Georgia.

"The Akhalkalaki HPP project is a successful example that other investors can share in order to successfully implement energy projects, especially in the direction of renewable energy," – the Minister said.

26 million USD was invested in the Akhalkalaki HPP cascade, and about 200 local residents were employed during the construction process. According to Levan Davitashvili, the hydroelectric power plant built with the Icelandic investment is interesting not only for being and significant energy project, but also because a number of social responsibility projects that were implemented within it. In particular, the investor company organized a pumping station, sports hall, drinking water infrastructure, participated in the construction of internal roads and many other activities in the settlements adjustment to the HPP.

Levan Davitashvili highlighted that the environmental norms were fully respected during the implementation of the project. "I think that we should continue the cooperation we have in the energy sector with Iceland. We hope that we will see Icelandic investments in the direction of renewable energy in Georgia again," – the First Vice Prime Minister added.

As the members of the Icelandic delegation noted, Iceland has significant experience in the rational use of various renewable energy sources. It was noted that Georgia and Iceland are successfully cooperating in this direction and have an interest in increasing the volume of these investments, especially considering the energy potential that Georgia has not only in hydropower, but also in the other renewable sources.

The Akhalkalaki HPP is a hydroelectric power station of the cascade type, on the flow of the river, which is located on the Faravan River and its right tributary, on the Korkh River, in the Samtskhe-Javakheti region, in the Akhalkalaki Municipality, near the villages of Diliska and Korkhi. The HPP was developed by the Caucasus Renewable Energy Holding CCEH together with the LANSVIRKJUN and the local company HYDRO ENERGY. LANDSVIRKJUN is Iceland's largest state-owned energy company, and the Akhalkalaki project is its first investment abroad. It should be noted that Landsvirkjun produces about 70% of the electricity consumed in Iceland. It owns and operates 15 hydro and 3 geothermal power plants in Iceland with an installed capacity of approximately 2200 MW.

Iceland's Minister of Environment, Energy and Climate, Gudlaugur Thór Thórdarson and other members of the Icelandic delegation also visited Akhalkalaki. Icelandic delegation was accompanied by the State Representative in Samtskhe-Javakheti Region Besik Amiranashvili, the Head of Department of Energy Policy and Investment Projects of the Ministry of Economy and Sustainable Development Jubo Turashvili, the Head of Environmental, Social and Governance Issues of Caucasus Renewable Holding Nana Berdzenishvili and Director of Aisi LLC Nugzar Cheishvili.