MIDTERM REPORT ON SOLAR PHOTOVOLTAIC SYSTEM PROJECT FOR OFF-GRID SETTLEMENTS

The project is part of the USAID Energy Program, which is providing technical assistance to the Government of Georgia (GoG) to enhance energy security and facilitate economic growth. The program is being implemented by Deloitte Consulting LLP under a USAID contract. The GoG has a policy to ensure that all residents have access to electricity, but the development of electricity grid in remote villages is related to high expenses and hard-working conditions. Recently, Georgia joined the European Energy Community and undertook the obligation to implement mandatory reforms in the energy sector in compliance with EU Energy Aquis. In accordance with the treaty, the GoG has undertaken an obligation to ensure the supply of energy sources to all citizens of the country. An alternative approach was proposed by USAID Energy Program to the GoG to provide an off-grid solution, namely, solar home systems with battery backup. According to the Energy Department of the Ministry of Economy and Sustainable Development of Georgia (MoESD), there are around 400 identified priority off-grid houses in the high mountain regions of 120 villages in Georgia with no access to electricity. The project funding will be considered as follows: 25% by the central budget of the GoG and the remaining 75% subject to grant funding from potential International Financial Institutions (IFI) and Donor organizations. The Prime Minister of Georgia revealed an interest in the successful implementation of the project and decided to participate in co-funding of the project. Hence, the GoG has passed a resolution to commit approximately USD $350,000 for 25% of the capital cost of the project based on the Full System configuration. Several meetings were held with the MoESD, Ministry of Regional Development and Infrastructure of Georgia (MRDI), Local Municipalities as well as with donor organizations, and other interested parties to facilitate the project implementation. USAID Energy Program and EECG prepared a concept paper to support the project. The project aims to provide electricity access to remote villages, improve energy security, and facilitate economic growth. The project will have a significant impact on energy market reform efforts of the Government of Georgia to comply with the country's obligations under the EnCT. The investment objective will be achieved through the provision of technical assistance to a variety of stakeholders in the energy sector. The ultimate goal of this Program is to enhance Georgia's energy security through improved legal and regulatory framework and increased investments in the energy sector. The project will focus on providing solar home systems with battery backup to 400 identified priority off-grid houses in the high mountain regions of 120 villages in Georgia. The project will be implemented in collaboration with the MoESD, MRDI, Local Municipalities, and EECG. The project will have a positive impact on the lives of the residents of the remote villages, improving their access to electricity, and enhancing their energy security. The project will also contribute to the achievement of the country's obligations under the EnCT, promoting the use of renewable energy sources, and enhancing the security of energy supply. The project will be implemented in accordance with the EU Energy Aquis, ensuring that the energy sector in Georgia is aligned with the EU energy policies and regulations. The project will have a long-term impact on the energy sector in Georgia, contributing to the country's energy security and economic growth.