Energy efficiency in Georgia

We are supporting the green energy transition in Georgia through energy efficient modernisations to public buildings.

Overview of our activities in Georgia

With our first implemented project in Georgia, we have improved learning and working environments and contributed towards the Georgia’s national goals to tackle climate change. Our future efforts will build on this positive impact.

In 2014, Nefco and the Georgian government signed a framework agreement acknowledging Nefco’s status as an international financial institution in Georgia. In 2016, the Danish Ministry of Foreign Affairs and Nefco established a trust fund to provide financial support for energy-efficiency demonstration projects, to train energy auditors, and to create awareness of energy efficiency among the general public in Georgia. This trust fund closed in 2022, when the first investment fund project was completed.

Since 2018 energy efficiency modernisations in public buildings have been funded by Nefco in Georgia to improve learning and working environments and support the energy transition in Georgia. The first investment project was inaugurated in 2022, including the renovation of 26 buildings across the country. The energy efficiency modernisations carried out from autumn 2018 until the end of 2022 have resulted in improved indoor conditions and energy savings. These improvements have supported Georgia towards its green transition by using renewable energy sources. The project has also contributed to the implementation of Georgia’s national goals to combat climate change. It has demonstrated the applicability of new building codes in various types of buildings with different functions and usage and how these new codes function in different climate zones.

Energy-efficiency modernisations in schools

A second investment project to renovate public schools in mountainous regions is ongoing. It will be expanded into more challenging settings in less-developed parts of the country, benefiting vulnerable social groups of the population. Alongside the positive environmental impacts and energy-efficiency improvements, the project will support the development of education, health and gender equality.

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Energy efficiency loans in Georgia and Moldova

Nefco can provide blended financing with loans and grants to municipalities in Eastern Europe to help them improve energy security and reach their emission targets. We offer loan financing to local governments mainly today in Georgia and Moldova. Typical projects relate to energy efficiency measures in public buildings. The maximum loan financing is normally EUR 5 million, provided together with dedicated grant funds such as grant funding from the Eastern Europe Energy Efficiency and Environment Partnership (E5P). We also provide grant funding for technical assistance.

Who can apply for funding?

We prioritise projects that have a high demonstration value and where the provided solutions have substantial upscaling potential.

Nefco requires borrowers to meet reasonable financial criteria, but the primary focus is on the positive environmental impacts of the project. In addition to the environmental aspects, we always examine the technical feasibility and financial profitability of all financed projects.

Contact us

Vivi Avikainen Investment Manager
Swedish, Finnish, English
Vitaly Artyushchenko Chief Investment Adviser
English, Russian, Swedish

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