Armenia, Georgia Forge Power Grid Connection The Armenian government has approved a grant agreement for the Caucasus Power Grid EU NPF Phase II project with the Reconstruction Loan Bank, as revealed during a Cabinet meeting on Thursday. The initiative aims to link the power systems of Armenia and Georgia through a high-voltage direct current converter station. This station, with a final capacity of 1050 MW, will be located near the Georgian border in Ayrum, according to reports from Armenian media. The project will connect the two countries on the Georgian side via a 500 kV overhead line from the substation in Marneuli, while the Armenian side will use a 400 kV overhead line from the 400/220 kV substation in Ddmashen. This connection is expected to increase the electricity exchange capacity between Armenia and Georgia from the current 200 MW to 350 MW in the first phase. Subsequently, the capacity could be expanded to 1050 MW, depending on the demand of the regional market. The construction of new overhead power lines is projected to enhance the quality of energy services, foster regional cooperation in the energy sector, and create conditions for integrating the power systems of Commonwealth of Independent States (CIS) countries. The total budget allocated for the project, excluding taxes, is 188.75 million euros. However, the updated estimated cost, provided by a consultant in November 2024, amounts to 542.75 million euros. The project is part of broader efforts to strengthen energy infrastructure in the South Caucasus region, aiming to improve reliability and efficiency in power distribution. By linking the two countries’ grids, the initiative could also support regional energy security and reduce dependency on external suppliers.#georgia #armenia #reconstruction_loan_bank #caucasus_power_grid_eu_npf_phase_ii #ayrum
