Page 58 - GEORptAug20
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9.2.6 Renewable energy corporate news
Japanese energy group TEPCO's renewable power division has acquired a 31.4% stake in the 108MW Dariali hydropower plant (Dariali HPP) in Kazbegi, Georgia, from the state-owned operator of the facility Dariali Energy JSC, Business Media has reported,citing an investor’s press release.
Dariali HPP generates power that accounts for 4% of Georgia's electricity consumption. Its annual output stands at 510mn kWh.
The press release outlined how the power station has a guaranteed purchase agreement with ESCO, the commercial operator of Georgia's electricity system. Its duration is set at 15 years.
Natia Turnava, Minister of Economy and Sustainable Development, commented on TEPCO entering the Georgian market. She said its market arrival was particularly important since it was taking place at a time of economic distress.
The opening ceremony for Dariali HPP was held on April 8, 2017.
The total cost of the project was $123mn. Dariali Energy JSC in 2014 was awarded an $80mn loan from the European Bank for Reconstruction and Development (EBRD) for the financing of the development, construction and operation of Dariali HPP.
TEPCO is Japan’s largest energy producer. It owns hydroelectric power plants, thermal power plants and nuclear power plants in Japan.
LSE-listed Georgian holding Georgia Capital has announced the buyout of the 34.4% minority shareholder, RP Global, in Georgian Renewable Power Company (GRPC) that is developing two hydropower projects and two wind power projects.
As part of the buyout, Georgia Capital will pay a fixed cash consideration of $13.8mn, of which $11.8mn represents total equity contributions received from RP Global, as well as an additional consideration for RP Global's technical assistance during the last six years. An additional deferred adjustable consideration of up to $4.5mn may be payable if actual market electricity sales prices are higher during 2023-2025 than the group's current internal forecasts. Following the buyout, Georgia Capital's renewable energy business will consist of its wholly-owned subsidiary GRPC, with only the 50MW Mestiachala Hydro Power Plants operational so far while the other projects on the pipeline, plus the wholly-owned Hydrolea HPPs and Qartli wind farm.
58 GEORGIA Country Report August 2020 www.intellinews.com
