The Georgian government has reduced funding for its flagship 200-megawatt energy storage project, according to the final draft of the 2026 state budget. Allocations for next year have been cut by GEL 85 million, bringing the funding level down to GEL 35 million.
Capital spending planned for the following years, from 2027 to 2029, has also been revised downward, from an original estimate of GEL 355 million to GEL 270 million.
Deputy Minister of Finance Giorgi Kakauridze told BMG that updated assessments show the project will require less money due to lower-than-expected equipment and installation costs.
“This is the projected amount. The cost of the project will also be less than initially estimated. It will take about 18 months to deliver,” Kakauridze stated.
The project is financed through a loan from the Asian Development Bank (ADB), while implementation responsibility lies with the Georgian State Electrosystem (GSE). The facility will be a 200 MW / 200 MWh lithium-ion battery designed to enhance Georgia’s power system stability.
Strategic Importance of the Project
The battery station will be built in Mtskheta municipality, near the Ksani 500 kW substation, serving primarily as a reserve source for Tbilisi, especially under peak demand or emergency conditions.
According to the government’s project summary, the storage facility will:
- Balance electricity generation from renewable energy sources and increase their integration capacity;
- Reduce dependence on electricity imports and improve national energy security;
- Strengthen the reliability of electricity supply to critical infrastructure around Tbilisi during emergencies such as natural gas supply disruptions or transmission line failures.
The State Electrosystem announced a tender for the project on August 4, closing on November 17. Tender results have not yet been published.
