Page 61 - GEORptDec19

Georgia Capital holding takes over 21 MW wind farm from state
regulation capacity, intended to meet the government's strategy to reduce dependency on imported power during the winter. However, the project has been criticised by environmental NGOs that claim it is financially not feasible. With its partner Limak, a major holding company active in energy and construction, Hyundai E&C received a notification of intention from Georgia JSC Nenskra Hydro, a joint venture between South Korea's Korea Water Resources Corp. and the Georgian government, for the hydropower plant project, the company said.
Under an agreement with Limak, Hyundai E&C will receive $332mn for the project to build the 280-megawatt hydropower plant and dam on the Nenskra River in Svaneti, northwest Georgia.
This will be the first time that Hyundai E&C has carried out a construction project in Georgia.
After the completion of hydropower station, Korea Water Resources Corp. will run the facilities and sell electricity to Georgia for 36 years before it transfers the management rights to the Georgian government.
Georgian holding Georgia Capital, listed on the London Stock Exchange, has through its renewable energy business division won a public auction and will purchase Georgia’s first wind power plant.
Qartli Wind Farm, with an installed capacity of 21MW, was developed by the state with financing from the European Bank for Reconstruction and Development (EBRD),
Georgia Capital will pay $14.4mn for a 100% equity interest. The gross debt of Qartli Wind Farm is $17.4mn.
The facility is the only operational wind farm in Georgia. It operates a wind power plant (WPP) with a very high average capacity factor of 47%.
The WPP is expected to add approximately $4.0mn of operational profit (Ebitda) to the renewable energy business’s income in 2020 statement on the back of 85 GWh gross annual generation.
The return on invested capital (ROIC) is expected to be approximately 12%. Qartli Wind Farm is to benefit from guaranteed prices throughout the whole year via its power purchase agreement (PPA) with the government of Georgia for the next 10 years. The PPA has a $65/MWh tariff.
Following the acquisition, the renewable energy business will have 91 MW of installed capacity and a pipeline of 350 MW of capacity in the medium term.
61​ GEORGIA Country Report​ December 2019 ​ ​www.intellinews.com