On June 8, 2014, ISET organized an excursion to the Aragvi hydro power plant (HPP) near the Georgian ski resort of Gudauri. The purpose of the excursion was to see how HPPs can contribute to employment and better infrastructure in highland areas. Students from ISET, representatives of non-government, private, international and other local organizations joined the excursion.

Built with modern technologies, the HPP was constructed by a joint partnership of Georgian and Austrian investors with particular attention being placed on minimizing negative environmental impacts. Although the HPP had a small, one-time, impact on local inclusive growth, in terms of employment, it is not a source of income for the local municipality. A shortcoming in Georgian law enables the power plant to use the water resources for free and thereby reduces the ability of the municipality to implement local programs.

The electricity generated by the HPP is supplied to the Georgian electric system through high voltage power transmission lines. However, the power plant would be more beneficial when there is local demand for the power. According to the existing legislation, any enterprise can buy electricity from any small HPP (including the Aragvi HPP).

This excursion was undertaken in advance of a dialogue on Access to Energy and Energy Poverty in Georgia that will take place in the framework of inclusive growth dialogues organized by the ISET Policy Institute in partnership with the Swiss Agency for Development and Cooperation.