Friday, August 12 2016 13:22
Emmanuil Mkrtchyan

Construction of new Power Line with Armenia part of Georgia`s energy strategy

Construction of new Power Line with Armenia part of Georgia`s energy  strategy

ArmInfo. Georgia plans to build a 500KV Power Line Marneuli (Georgia) - Ayrum (Armenia) by 2018 as part of the trans-boundary infrastructure development plans, 
Business Georgia writes referring to the Georgian Energy Ministry's strategy for 2016-2025. 

In addition to it, Georgian plans to build a 500KV Power Line Ksani-Stepantsminda-Mozdok within 5 years, and a 400KV Power Line Akhaltsikha (Georgia) - Tortum (Turkey) by 2019. Under its energy strategy, Georgia plans to double its interconnecting mains with the power system of its neighbor-countries within 10 years.  In particular, the interconnecting mains will be increased to 700MW, with Russia and Turkey - to 1,400MW, with Azerbaijan it already has power transmission capacities of up to 1,000MW.  Under the energy strategy of Georgia, interconnection lines in the territory of Georgia will be developed in the direction from the North to the South (Russia-Armenia-Iran and back) and from the East to the West (from Azerbaijan to Turkey). Georgia imported 86.5mln kWh electric power from Armenia in 2015 (a 41.2-fold growth), and exported 70.9mln kWh electric power to Armenia (down 49.5%). 

In the meantime, it should be recalled that Fichtner GmbH & Co.  KG, the Armenia-Georgian Power Line project consultant, will prepare a tender package to choose the general contractor of Armenia-Georgia power transmission line project by the end of 2016, Deputy Energy Minister of Armenia Areg Galstyan told ArmInfo yet in April. 
According to him, it is planned to implement the project in three phases, the sources of financing of the first two phases are already known.  The first two phases are estimated at 188.2mln EUR. To that end, three credit agreements were signed in 2014- 2015. In particular, German KfW Bank issued a 168mln EUR loan for the given 
purpose, European Investment Bank issued a 10mln EUR loan, and the European Commission is expected to provide a 10mln EUR grant.  The first two phases will be implemented simultaneously starting in 2017 and completing by the end of 2018. 

The project aims to link the power grids of Armenia and Georgia and to promote mutually beneficial regional cooperation within the framework of the Iran-Armenia- Georgia-Russia energy corridor. In addition, the project will create prerequisites for synchronous operation of the electric power networks of the CIS member states.  According to FICHTNER, the cost of the project is preliminarily estimated at 326.9 mln EUR, with Georgia to contribute 10% of it.

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