The Asian Development Bank (ADB) has approved a $104 million loan to support Georgia’s energy security and promote the development of renewable energy technologies, the bank announced on Thursday. The funding, part of ADB’s Energy Storage and Green Hydrogen Development Project, will help establish Georgia’s first energy storage facility and explore opportunities in green hydrogen.

The project includes the installation of a 200MW/200MWh Battery Energy Storage System (BESS) at the Ksani Substation near Tbilisi. This will strengthen the national grid’s ability to absorb renewable energy, reduce dependence on neighboring countries for grid stability, and open the door to increased private sector involvement in Georgia’s energy sector.

“ADB has been a long-standing partner in supporting Georgia’s efforts to strengthen its energy sector,” said Lesley Bearman Lahm, ADB Country Director for Georgia. “This new project marks another significant step toward enhancing the country’s energy independence.”

The initiative responds to growing electricity demand and the vulnerability of Georgia’s hydro-dependent energy system to shifting climate conditions, such as changes in precipitation and water availability. Technologies like BESS and green hydrogen are seen as vital to securing sustainable and resilient energy solutions.

ADB also approved a $400,000 grant for technical assistance to help Georgia assess its green hydrogen potential. This support will guide the government in creating a roadmap for green hydrogen development, with a focus on enabling private sector investment.

“Surplus energy generated during peak seasons can be converted into green hydrogen and traded on EU energy markets,” noted ADB Principal Energy Specialist Adnan Tareen. “This can strengthen Georgia’s energy system and unlock new economic opportunities.”

The project also aims to modernize Georgia’s legal and regulatory framework, paving the way for future integration of storage technologies and green hydrogen into the national energy mix.

The Ministry of Economy and Sustainable Development will oversee the project, while the Georgian State Electrosystem will serve as the implementing agency. The initiative aligns with ADB’s Country Partnership Strategy for Georgia (2024–2028), which supports reforms aimed at transforming Georgia into a regional hub for clean energy trade.