Georgia’s renewable energy sector is awaiting a clear government stance on the future of the Khudoni hydropower project, as a prospective investor has expressed interest in its construction. The information was confirmed by Maia Melikidze, Executive Director of the Georgian Renewable Energy Development Association (GREDA), on BMGTV. Although Melikidze did not name the investor, BMG sources indicate the interested group is based in France.
The government repurchased the Khudoni project from its former investor, the Indian company TransElectrik, for USD 13.5 million. The original plan envisioned a 702 MW HPP with an annual output of 1.5 billion kWh and a project cost of around USD 1 billion.
Melikidze emphasized that Georgia urgently needs to begin constructing new generation assets and that large-scale projects - Khudoni, Nenskra, and Namakhvani - remain critical for the country’s energy security. However, she noted that only Khudoni currently appears to have realistic development prospects.
“Let’s start with Khudoni and objectively assess the situation… There are several interesting options here, and now it’s up to the state to decide: build with its own resources, which we support, or bring in an investor and develop the project in partnership,” Melikidze stated. She added that “a very interesting investor may already be in line,” but without a clear government position, progress is impossible.
Melikidze also highlighted that Namakhvani remains tied up in arbitration enforcement, while Nenskra still involves its original investor and is undergoing negotiations over a potential state takeover, making Khudoni the most actionable large HPP at this time.
She stressed that communication between the government and investors must accelerate, noting the sector’s pressing need for new generation:
“The private sector sees clearly that the energy system needs balancing. Our goal is to have as much domestic generation as possible.”
