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capacity of 108MW.At present, Georgia has a sole wind farm, with a capacity of 21MW, It was purchased by the holding from the state last November
The government has approved the concept for the group's renewable energy business's Wind Power Plant (WPP) projects near Tbilisi and Kaspi, Georgia Capital announced on January 13.
The approval represents a significant milestone in obtaining Power Purchase Agreements (PPAs) from the state, and these are expected to be finalised in the near future, according to Georgia Capital press release.
The Tbilisi and Kaspi wind farms are expected to have an average capacity factor within the 35%-40% range. Both projects are to be constructed in parallel with an expected commissioning date in the second half of 2022. Georgia’s first wind farm, Qartli Wind Farm was developed by the state with financing from the European Bank for Reconstruction and Development (EBRD).
Wind farms with 350 MW of installed capacity will be built in Georgia by 2021, according to Deputy Minister of Economy and Sustainable Development Davit Tvalabeishvili, as quotedby Business Media. According to Tvalabeishvili, 350 MW is the maximum power that the Georgian electricity system could receive from wind farms at this time.
"We conducted a study with German experts and found that by 2021, with the reserve capacities we have in the system, we could build about 350 MW of wind power stations and about 130 MW of solar power. If we build more, we could face blackouts since we do not have enough backup capacity," he was cited as saying.
The government has developed incentives to support the development of wind farms. It will pay 6.5 US cents per kWh over the first 10 years of operations.
9.2 Major corporate news 9.2.1 Oil & gas corporate news
Texas oil company Frontera turns down Georgia’s call for amicable settlement of dispute
Texas oil company Frontera Resources has accused Georgian authorities of spreading disinformation “after years of threats and harassment”. It made the claim in response to officials saying they had agreed not to terminate a contract with the enterprise despite a legal right to do so.
The government’s call for an amicable settlement of the dispute with Frontera “was packed with slanderous statements, which only served to tarnish our company name and spread false statements about our activities”, the company said in a press release quotedby Business Media. It stressed once again that there was never any legal basis for the unilateral termination of the contract. “The constant slander of the Georgian government is wrong and is deliberate harassment. It is aimed at misleading and creating the impression of generosity and benevolence when, in fact, it is a continuation of dishonest behavior aimed at insidiously obstructing the inflow of foreign direct investment from the US.,” the release added.
The tough response to the government came after US ambassador to Georgia, Kelly Degnan, welcomed the decision of the government regarding the Frontera case.
“This is a good sign that the Georgian government is open to communication with the company. Therefore, it would be good if this issue is resolved through dialogue and agreement", Degnan said.
Commenting on the case, prior to Frontera’s response, Prime Minister Giorgi
54 GEORGIA Country Report August 2020 www.intellinews.com
