Energy Network Improvement Programme (ENIP)
ENIP is an extensive investment programme into Georgia’s transmission infrastructure. Implementation of the programme will be completed through 2023-2026 years. The total investment is 325 Mio. EUR, funded by EBRD and KfW, including 9.9 Mio. EUR grant funding from the EU Neighbourhood Investment Facility (EU NIF), partly intended for investments and for financing Technical Assistance. GSE (Georgian State Electro System JSC) is responsible for the implementation of several sub-projects, with Technical Assistance of international consultants.The infrastructure components of ENIP are located across all of Georgia – in the regions of Imereti, Guria, Racha, Svaneti and Kakheti. Under ENIP, amongst others, more than 561 km of transmission lines and 13 substations will be constructed, extended or rehabilitated.
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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.