EBRD ~ Infrastructure and Energy Integration in the South Caucasus

2025-12-29

Accelerating the deployment of renewable energies and modernizing the electricity grid are critical to strengthening energy security and realizing export potential, especially in the context of strategic projects such as the Black Sea submarine cable, EBRD Regional Director for the Caucasus, Alkis Vreinios Drakinos, told Business Insider Georgia in an exclusive interview.

Another important issue, he said, is the relevance of human capital.

“Scaling up vocational education and digital skills is essential to support the growth of ICT and green industries. Finally, Georgia’s potential as a logistics and energy hub depends significantly on harmonizing standards and upgrading infrastructure, which will contribute to deepening regional integration.

The EBRD sees infrastructure and energy integration as one of the key drivers of sustainable economic growth and regional connectivity in the South Caucasus. The most transformative opportunity is related to the development of cross-border energy corridors, in particular the Black Sea submarine cable and the associated Green Energy Corridor. This initiative not only strengthens energy security, but also positions the region as a strategic supplier of clean energy to Europe, which is fully in line with global decarbonization goals,” noted the EBRD Regional Director for the Caucasus.

Beyond interconnections, Drakinos says that, beyond grid connections, it is crucial to modernize the electricity transmission infrastructure in both Georgia and Armenia to enable the effective integration of variable renewable energy sources — hydropower, wind and solar.

“Georgia has strong macroeconomic fundamentals. Investments in smart grids, energy storage solutions and transmission line upgrades will ensure more reliable and efficient electricity flows across borders. The EBRD is actively supporting these processes with both financial resources and technical assistance, in full compliance with international environmental and social standards.

On the transport side, the Bank sees significant potential in multimodal logistics corridors, including the Armenian Corridor and Georgia’s port infrastructure. These projects strengthen the region’s role as a transit hub within the Middle Corridor, which connects Central Asia with Europe. The upgrade of roads, rail infrastructure and ports, together with the digitalization of customs and border systems, will reduce trade costs and increase resilience in the face of geopolitical risks.

Finally, the EBRD emphasizes the synergies between energy and transport investments,” says the EBRD Regional Director for the Caucasus.

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