The Kabali SHP, a facility built in 1950s and privatized in the 1990s, was selected as the Program partner in 2006. With the help of technical and financial assistance from the Rural Energy Program, the facility expanded generation capacity by 1 MW from 500 kW to 1.5 MW, increasing annual generation by 8.25 million kWhs. With rehabilitation the plant is capable of generating approximately USD 1.16 million in electricity over the next years. Electricity generated by the hydro power station is purchased by the regional, Kakheti electricity distribution company.
Rural Energy Program assistance has included:
- Preparation of pre-feasibility studies
- Completion of project technical design documents
- Development of a business plan successful in securing $290,000 in loan financing for 5 years at 14%
- Development of construction management plans and on-site management assistance
- Completion of an Environmental Management Plan resulting in obtaining necessary environmental and construction permits
- Provision of a $160,000 grant
- Development and institution of an operation and maintenance program
Project Activities
- Rehabilitation of a Tyrol-type water intake dam
- Rehabilitation of water intake structure
- Repair of the settling basin and spillway
- Cleaning of the river bed in upper and lower pools of the dam
- Restoration of damaged sections of penstock (1100 meters)
- Restoration of damaged surge tank
- Rehabilitation of the road to the headworks
- Rehabilitation of the three turbine/gen sets and controls
- Improvement of powerhouse building
- Capital repair of the 10 kV equipment for voltage distribution
- Rehabilitate the battery room, including ventilation
Results
- Installed capacity of Kabali hydro power plant increased by 1 MW from 500 kW up to 1.5 MW;
- The operation of the hydro power station positively affected economic and social conditions in the community as well as provide incentives for small business development in the region.

