Auction to be announced for construction of Gardabani-3 TPP

29 May, 2023

By decision of the Government of Georgia, an auction will be announced for construction of a combined cycle energy-efficient thermal power plant (TPP) with installed capacity of 350-430 MW in Gardabani Municipality. This decision was made today, at the government session.

As a result of the auction, an investor will be selected for construction of the TPP and will be assigned to perform works related to construction and commissioning of the TPP. The Government approved of the information regarding alienation of 100% of shares owned by GOGC in Gardabani-3 TPP LLC for the purpose of attraction of private investments /investors required for the TPP construction, provided that it is constructed in compliance with the requirements established by the Georgian State Electrosystem and the requirements arising out of the power system needs by the private investor (flexible operation capacity etc.). One of the necessary preconditions for alienation of shares is commissioning of the TPP within the period of 4 years.

It is noteworthy that it was planned to construct 272 MW combined cycle TPP-3 in Gardabani Municipality, however, considering the tendency of significant increase of electricity consumption and deficit of generation sources, the question of construction and commissioning of a thermal power plant with a higher capacity (350-430 MW) in the nearest future was put on the agenda.

After the government session, Mr. Levan Davitashvili, Minister of Economy and Sustainable Development talked about the novelty with news media representatives in detail and stated that the government defined respective technical conditions for the TPP construction.

"Another main condition for selecting an investor will be the lowest capital expenses of the TPP construction per 1 MW. As you know, guaranteed capacity tariff is defined based on capital expenses and in order to generate electricity at the lowest price possible, we want the TPP construction to take place most effectively. These are the parameters defined for the network stability.

When talking about renewable energy projects, it is often impossible to integrate them into the network, due to the fact that we do not have respective capacities from stable generation sources. The new thermal power plant will help us to integrate more renewable energy projects into the network. This is a very significant project and we hope that we will start working after a several months of selection. Construction of the TPP should be finalized within four years", - stated Mr. Davitashvili after the government session.

The auction for submission of proposals by interested companies will be announced on the website of GOGC in the nearest future. The process will be led by GOGC through a specially created commission.