Georgia will receive financial support for its energy sector reform in the form of policy-based loans from the KfW (a German state-owned development bank) and the French Development Agency (AFD), as well as a grant from the EU. The aim of the funding is to support the implementation of the energy efficiency measures of Georgia’s reform programme.

Carl Hartzell, Ambassador of the EU to Georgia, said:

“I am pleased to see that further reforms towards a transparent, competitive and efficient energy sector are moving ahead. Through the joint efforts of the EU, KfW and AFD, and support of the Energy Community, Georgia has laid the foundation for a better use of energy by adopting key energy efficiency legislation based on EU rules and best practices. I am looking forward to the necessary follow-up decisions that will pave the way for the rapid implementation of large-scale energy efficiency renovation programmes, which will bring savings, environmental and health benefits, as well as improved energy security to Georgia. These programmes will also provide a welcome boost to construction businesses, contributing to the country’s economic recovery.”

The EU grant of nearly €8.5 million will facilitate the development of secondary energy efficiency legislation in 2020–2021. Its aim is to promote energy efficiency, especially in the building sector, as well as market reform measures to support Georgia’s transition from a centralised electricity market to an organised market.

The KfW grant of nearly €7.5 million will finance energy efficiency measures in preschools in the city of Batumi. Additionally, the KfW is preparing an energy efficiency rehabilitation investment programme for Georgian schools with the support of the EU and the German government.

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Press release

EU4Energy programme