Georgia is preparing to introduce its first grid-scale battery energy storage system at Ksani. The project is expected to play an important role as electricity demand grows and more wind and solar generation enters the system.

The planned battery system will have a capacity of 200 MW / 200 MWh. It is being developed with support from the Asian Development Bank as part of its Energy Storage and Green Hydrogen Development Project.

renewables.GE spoke with Adnan Tareen, Principal Energy Specialist at ADB, about the role battery storage could play in Georgia’s electricity system, the conditions needed for private investment, and the longer-term potential of green hydrogen.

Why battery storage matters for Georgia

renewables.GE: Why is grid-scale battery storage becoming important for Georgia now, and what role is the Ksani project expected to play in the country’s electricity system?

Adnan Tareen: Georgia needs additional fast-response reserves as electricity demand and variable renewable generation increase. The Ksani project will provide rapid frequency control, strengthen grid security and reduce dependence on neighboring systems for balancing support.

renewables.GE: Georgia already has substantial hydropower capacity, which can provide flexibility to the electricity system. What additional capabilities can battery storage provide that hydropower alone cannot?

Adnan Tareen: Hydropower remains essential, but its flexibility varies with water availability and operating conditions. Batteries complement hydropower and can respond within milliseconds, provide precise upward and downward regulation, and deliver services such as virtual inertia, voltage control and black-start support without mechanically stressing generating units.

renewables.GE: ADB says the project should help Georgia integrate more renewable energy and reduce reliance on neighbouring systems for grid-stability support. How significant could these benefits be in practice?

Adnan Tareen: The benefits could be substantial. The Ksani project is expected to make Georgia State Electrosystem (GSE) more self-sufficient in frequency reserves, support an initial expansion of wind and solar, and significantly reduce the risk of unserved energy, which carries major economic and social costs. Further storage phases could strengthen grid independence as renewable capacity grows.

renewables.GE: As Georgia develops more wind and solar projects, how could storage change the amount and type of renewable generation that the electricity system can accommodate?

Adnan Tareen: Storage can smooth rapid wind and solar fluctuations, manage ramps, complement hydro and thermal plants and prevent reliance on external emergency support. This allows the system to accommodate more variable renewables safely.

Creating a commercial market for storage

renewables.GE: Could the Ksani project serve as a demonstration for commercially developed battery-storage projects in Georgia? What conditions would need to exist for private investors to enter this market?

Adnan Tareen: Ksani can provide operating data, technical standards and practical experience for future private projects. Together with clear commercial arrangements and predictable revenue streams, this can help promote private development of battery storage in Georgia.

renewables.GE: What regulatory, market and tariff changes are likely to be necessary before battery storage can operate as a commercially viable part of Georgia’s electricity system?

Adnan Tareen: Storage should be clearly defined and licensed as a distinct system asset. Tariff rules should avoid double charging, while regulation should allow storage to provide multiple services.

Green hydrogen and wider system investment

renewables.GE: The project also includes work on green hydrogen development. Where does ADB currently see realistic opportunities for hydrogen in Georgia, and how mature are those opportunities compared with battery storage?

Adnan Tareen: Green hydrogen may offer longer-term opportunities in hard-to-electrify industry, transport and exports, including derivative products such as green ammonia and maritime fuels. In the near term, pilot projects can test technologies, standards and business models, but remain at an early development stage. Battery storage is considerably more mature, with an immediate grid need and a fully defined project ready for implementation.

renewables.GE: Beyond storage itself, what other investments will Georgia need in transmission, digitalization and system flexibility if renewable-energy capacity grows substantially over the coming years?

Adnan Tareen: Georgia will need targeted transmission reinforcement, new interconnections, modern dispatch and forecasting systems, and digital monitoring and control. It will also require technologies to manage inverter-based renewables alongside further reinforcements to its flexibility portfolio.

What would success look like?

renewables.GE: Looking three to five years ahead, what would ADB consider a successful outcome from this project — not only for the Ksani facility itself, but for Georgia’s wider renewable-energy market?

Adnan Tareen: Success would mean that Ksani is operating safely and reliably, delivering measurable frequency and stability services under GSE dispatch. More broadly, it would mean that the project has enabled additional renewable investment, established workable storage rules and created a credible pathway for further BESS capacity, including private participation.

Source note: Interview with Adnan Tareen, Principal Energy Specialist at the Asian Development Bank. Additional project background based on information provided by ADB.