Georgia’s first planned grid-scale battery energy storage project remained at the procurement stage in May 2026, despite earlier expectations that implementation spending would begin during the year.

The Asian Development Bank approved a USD 104 million loan for the Energy Storage and Green Hydrogen Development Project. The programme includes a 200 MW/200 MWh battery energy storage system at the Ksani substation near Tbilisi.

The facility is intended to improve grid stability, absorb surplus electricity, support peak demand and allow the power system to integrate a larger volume of variable renewable generation.

The procurement process had been announced twice and concluded in November 2025, according to Georgian reporting, but no winning bidder had been publicly identified by late May 2026. Budget data also indicated no project spending during the first months of the year against a planned first-half allocation.

The delay matters because Georgia is already facing seasonal mismatches between generation and demand. In spring and early summer, hydropower output can exceed domestic needs, while winter shortages increase reliance on imports.

A large battery cannot eliminate that structural imbalance on its own, but it can provide short-duration flexibility, frequency support and emergency reserves while reducing dependence on neighbouring systems for stability services.

The project also includes work on the legal and regulatory framework for storage and technical assistance related to green hydrogen.

Until a supplier and construction schedule are confirmed, the project should be described as financed and planned rather than under construction. Its eventual delivery will be an important test of Georgia’s ability to add flexibility alongside new renewable capacity.

The article is based on information published by the Asian Development Bank and Georgian business media.