The 702 MW Khudoni HPP is currently the most realistic and critically important hydropower project in Georgia, Maia Melikidze, executive director of the Georgian Renewable Energy Development Association, told BMG. She said the project is particularly important for integrating additional renewable generation into the electricity grid.
According to Melikidze, three models are possible for the project: full state involvement, full private investment, or a mixed model. She considers the mixed model the most appropriate, as the construction of small and medium hydropower plants, as well as solar and wind projects, will require additional grid capacity and balancing resources.
She said Khudoni is the most relevant project at this stage because of its planned 702 MW capacity and regulating function. Without storage and regulating hydropower plants, integrating additional generation and maintaining balance in the electricity system would become more challenging, she said.
Melikidze added that a European investor is already interested in the project and willing to participate in its construction. However, she said the success of the process will depend on future negotiations. She also noted that fully private development could face significant opposition from local communities, making a mixed state-investor model a more suitable option.
