GSE said the project would be implemented for a cost of $50m, reported Azer News.
Georgian State Electrosystem chairman Sulkhan Zumburidze was quoted by the website as saying that the site on which to build the substation has not yet been decided.
"One of the main purposes of this line is to establish stronger contacts with Russia," Zumburidze added.
At present, the two countries Georgia and Russia are exchanging power through 500kV Kavkasioni power transmission line.
Through the line Georgia receives electricity during winter.
