The Armenian government has approved agreements with the German bank KfW: a loan of 120 million euros and a grant of 15 million euros. The funds will be directed to the "Caucasus Electricity Transmission Network" project, which aims to connect the energy systems of Armenia and Georgia through a high-voltage direct current converter station in Ayrum.
On the Georgian side, the connection will be made from the "Marneuli" substation via a 500 kV line, and on the Armenian side, from the 400/220 kV substation in Ddmashen. It is planned to increase the power exchange capacity from 200 MW to 350 MW in the first stage and up to 1050 MW in the future, taking into account the needs of the regional market.
The Ministry of Energy emphasized that the new lines will improve the quality of electricity supply, stimulate the development of regional cooperation in the energy sector, and create conditions for integration with the electric power system of the CIS countries. The state budget for 2026 allocates 45.6 billion drams for the program, including credit funds and co-financing.
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