Georgia has announced it is to receive the first wind power plant in the Caucasus region.

The European Bank for Reconstruction and Development (EBRD) has arranged a $22 million (£17.4m) loan for Qartli Windfarm LLC to develop, construct and operate the wind farm.

The bank is providing a $10 million (£7.90m) portion of funding with the remaining $12 million (£9.5m) coming from a dutch investment syndicate.

The wind farm will have around 21MW of capacity and is expected to generate 85GWh of electricity annually.

It will cover Georgia’s seasonal demand during the winter while one-third of the power is likely to be sold to Turkey.

Aida Sitdikova, EBRD Director for Energy and Natural Resources, said: “This is important in terms of energy security as well as mitigating the impact of climate change. After having invested more than $265.5 million (£213m) in Georgia’s energy sector, we are now hoping to make another renewable source, wind, attractive for investors.”