Energy Network Improvement Programme (ENIP)

ENIP is an extensive investment programme into Georgia’s transmission infrastructure realized by the partnership between the European Union, GSE and KfW, working as Team Europe.
The total investment of ENIP is EUR 270 Mio, co-financed by KfW on behalf of the Federal Republic of Germany and EBRD, including EUR 9.9 Mio grant funding from the EU Neighbourhood Investment Platform (EU NIP) implemented by KfW.

GSE (Georgian State Electrosystem JSC) is responsible for the implementation of several sub-projects, with Technical Assistance of international consultants. Within the framework of ENIP, infrastructure projects are being implemented across all of Georgia in the regions of Imereti, Guria, Racha, Svaneti and Kakheti. Within the programme, 7 substations and more than 540 km of power transmission lines are being built and expanded. The implementation of the program started in 2021 and it is planned to be completed in 2028.

The Energy Network Improvement Programme (ENIP) is co-funded by:

Disclaimer
“This publication has been produced with the Assistance of the European Union. Its contents are the sole responsibility of GSE and do not necessarily reflect the views of the European Union.”

Background

By former Financial Cooperation Programmes, Georgia’s energy infrastructure has been decisively improved. The Georgian economy has been given a vital boost by the improved stability of its transmission network and additional power transmission capacities to Turkey.On 1 July 2016 the Association Agreement between the EU and Georgia entered into force. As part of the agreement Georgia reinforces its energy infrastructure further, especially its electricity grid. Georgia shall also improve its energy efficiency and develop the use of renewable energy sources. It moves also towards integration of its energy market with that of the EU and to strengthening energy security and convergence with EU-regulations.

The importance of the Georgian electricity sector

The electricity sector is of central importance of the Government of Georgia and crucial for the economic development as well as the satisfaction of the population’s basic needs. About 80% of electricity is generated by hydro power plants, which means that during winter electricity has to be imported and in summer exported (mainly to Turkey, Russia and Armenia). To meet growing demand for electricity the Government of Georgia aims at a significant extension of power generation (mainly hydro power), extension of the transmission grid and stronger integration of the regional grid with the south Caucasus countries and beyond.

Implementation according to the highest environmental and social standards

Infrastructural projects can impact the environment and people’s lives considerably. To limit these impacts GSE undertakes an Environmental Impact Assessment in accordance with Georgian law. Beyond this an Environmental and Social Impact Assessment (ESIA) is undertaken in accordance with international guidelines, including EBRD Performance Requirements and KfW’s Sustainability Guideline and European Union directives. The ESIA identifies measures that need to be adopted by the programme to avoid or reduce environmental impacts. The ESIA includes also a process of actively engaging stakeholders by meaningful consultation on the basis of which measures need to be adopted by the programme to minimize social impacts: for example, design and routing of transmission lines that minimize impacts on local population and a framework for compensation of limitations on land use, actual land loss or – if unavoidable – physical resettlement. Thus, programme planning and implementation are based on the highest international environmental and social standards.

Benefits of the Programme

ENIP supports Georgia to develop:

a stable, reliable, cost-effective and efficient transmission system, ensuring network security
sufficient transfer capacity for the integration of renewable energy sources into the network and power exchange with neighbouring countries.

The resulting improved conditions for economic development will boost tourism, industrial and agricultural activities and business in general, which means more jobs and higher incomes for the people in Georgia.Georgia’s role in the region as energy hub will be strengthened. Cross-border cooperation in the energy sector increases which helps to improve the relations between the countries in the south Caucasus.

Delegation of the European Union to Georgia

The European Union for Georgia