The document summarizes hydropower potential and investment opportunities in Georgia. It outlines that Georgia has vast untapped hydro resources, with 18% of its potential currently utilized. 41 medium-sized hydropower plants under 100MW each are being offered to investors, along with opportunities to develop larger plants. The country aims to become an energy hub and exporter to neighboring countries like Turkey and Azerbaijan. The regulatory framework is designed to attract investment through simplified procedures, tax benefits, and guaranteed access to transmission infrastructure.

1. Ministry of Energy and
Natural Resources of Georgia
Hydropower Potential and Investment
Opportunities in Georgia

2. INTRODUCTION
Economy
• Open and dynamically growing
economy
• Minimum bureaucracy and liberal
regulations
• Diversified economic growth
International Recognition
World’s Top Reformer country
according to Ease of Doing
Business (WB/IFC)
Government’s strong
commitment for further reforming
•
•
Regional Energy Hub
•
•
•
•
www.menr.gov.ge
Reliable transit country
Net electricity exporter to all four
neighboring countries
Rapidly expandable energy
markets
Construction of additional
electricity export infrastructure
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3. ELECTRICITYBALANCE
Seasonal Asymmetry of Generation and
Consumption
Winter
8%
15%
HIGH
100%
92%
85%
2004
2010
Generation
Consumption
Thermal & Import
Hydro
Tw/h
Summer
LOW
Projected
HIGH
Current
LOW
Before
2004
2005
2006
2007
2008
2009
2010
Generation
6.9
7.1
7.6
8.3
8.6
8.9
10.1
Hydro
6.0
6.0
5.4
6.9
7.3
7.7
9.3
Thermal
0.9
1.0
2.2
1.5
1.3
1.2
0.8
-1.2
-1.3
-0.7
0.2
0.3
0.5
1.3
Consumption
8.1
8.3
8.3
8.1
8.3
8.4
8.8
Distribution
5.7
5.9
5.9
5.9
6.0
6.1
6.4
Direct Customers
1.7
1.9
2.0
2.0
2.1
2.1
2.1
Transmission Losses
0.7
0.5
0.4
0.2
0.2
0.2
0.3
Consumption per capita
1.8
1.8
1.84
1.9
1.9
1.95
1.97
Net Import / Export
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4. EXISTING HYDRO POTENTIAL
 Vast untapped hydro resources
 Top country in water resources per capita
 In total 26,000 rivers
 300 rivers in terms of energy production
 18% of total hydro potential is utilized
 HPP Greenfield potential of 20 TWh
www.menr.gov.ge
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5. INVESTMENTOPPORTUNITIES
 41 HPPs (each up to 100 MW) are offered to potential
investors
 Investor is free to choose and apply for construction of
up to 7 potential HPPs from the list
 Investor is not limited with the list
 Terms and conditions of EOI for HPPs more than 100
MW capacity is subject of Government’s resolution
www.menr.gov.ge
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6. HPPs PRE FEASIBILITYSTUDY INCLUDES
Financials/Ratios
Income Statement
Cash Flow
Balance Sheet
Technical Projection
HPPs Technical Data
Hydrological Data
NPV
IRR
www.menr.gov.ge
Topographic
Maps
Other Necessary Data
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7. POTENTIAL MEDIUM & SMALL SIZE HYDRO
PROJECTS
Project Name
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Medani HPP
Lebarde HPP I
Lebarde HPP II
Lesulukhe HPP
Nakra HPP1
Nakra HPP
Khumpreri HPP
Kheledula HPP 1
Kheledula HPP 2
Kheledula HPP 3
Stori HPP
Stori HPP1
Stori HPP2
Stori HPP3
Cheshura HPP
Samitso HPP
Jejora HPP
Jria HPP
Boriti HPP
Khani VII HPP
www.menr.gov.ge
River Name
Chanis Tskali
Lebarde
Tekhuri
Tsachkhuru
Nakra
Nakra
Khumpreri
Kheledula
Kheledula
Kheledula
Stori
Stori
Stori
Stori
Cheshura
Jejora
Jejora
Kvirila
Dumala
Khanistskali
Region
Samegrelo Zemo Svaneti
Samegrelo Zemo Svaneti
Samegrelo Zemo Svaneti
Samegrelo Zemo Svaneti
Samegrelo Zemo Svaneti
Samegrelo Zemo Svaneti
Samegrelo Zemo Svaneti
Samegrelo Zemo Svaneti
Samegrelo Zemo Svaneti
Samegrelo Zemo Svaneti
Kakheti
Kakheti
Kakheti
Kakheti
Racha-Lechkhumi-Kvemo Svaneti
Racha-Lechkhumi-Kvemo Svaneti
Racha-Lechkhumi-Kvemo Svaneti
Imereti
Imereti
Imereti
Projected
Installed Capacity
MW
4.4
4.6
4.2
5.7
14.8
20.4
16.4
18.8
21.6
44.3
11.8
14.0
11.4
13.7
7.5
24.3
15.8
9.2
6.4
6.4
Regulation Type
Run-of-the-River
Run-of-the-River
Run-of-the-River
Run-of-the-River
Run-of-the-River
Run-of-the-River
Run-of-the-River
Run-of-the-River
Run-of-the-River
Run-of-the-River
Run-of-the-River
Run-of-the-River
Run-of-the-River
Run-of-the-River
Run-of-the-River
Reservoir
Reservoir
Run-of-the-River
Run-of-the-River
Run-of-the-River
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8. POTENTIAL MEDIUM & SMALL SIZE HYDRO
PROJECTS
Project Name
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
Bakhvi HPP4
Iori HPP
Samkuristskali HPPI
Samkuristskali HPPII
Avani HPP
Duruji HPP
Marelisi HPP
Natanebi 1 HPP
Natanebi 2 HPP
Natanebi 3 HPP
Uraveli HPP 1
Uraveli HPP 2
Muskhi HPP
Zarzma HPP
Chela HPP
Kvablia HPP
Zestafoni HPP I
Zestafoni HPP II
Zestafoni HPP III
Zestafoni HPP IV
Mleta HPP
www.menr.gov.ge
River Name
Bakhvis Tskali
Iori
Samkuris Tskali
Samkuris Tskali
Avanis Khevi
Duruji
Bjholis Khevi
Natanebi
Natanebi
Natanebi
Uraveli
Uraveli
Injasu
Dzindzistskali
Kvabliani
Kvabliani
Kvirla
Kvirla
Kvirla
Kvirla
Tetri Aragvi
Region
Guria
Mtskheta-Mtianeti
Kakheti
Kakheti
Kakheti
Kakheti
Imereti
Guria
Guria
Guria
Samckhe-Javakheti
Samckhe-Javakheti
Samckhe-Javakheti
Samckhe-Javakheti
Samckhe-Javakheti
Samckhe-Javakheti
Imereti
Imereti
Imereti
Imereti
Mtskheta-Mianeti
Projected
Installed Capacity MW
1.0
9.7
4.9
22.6
4.6
1.7
4.6
7.2
7.5
11.5
4.3
5.07
2.04
4.30
8.20
6.78
10.0
11.9
15.9
15.9
1.97
Regulation Type
Run-of-the-River
Run-of-the-River
Run-of-the-River
Run-of-the-River
Run-of-the-River
Run-of-the-River
Run-of-the-River
Run-of-the-River
Run-of-the-River
Run-of-the-River
Run-of-the-River
Run-of-the-River
Run-of-the-River
Run-of-the-River
Run-of-the-River
Run-of-the-River
Run-of-the-River
Run-of-the-River
Run-of-the-River
Run-of-the-River
Run-of-the-River
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9. EXPORTOPPORTUNITIES
 Georgia’s hydro potential can be used to offset part of the
growing demand in Turkey, Russia, Azerbaijan, Armenia, Iran,
and Europe
 Over the last three decades Turkish demand for electricity has
grown at an average rate of 7.6% per annum
 By 2013 Turkey is expected to be a net importer of electricity
 The peak demand season (summer) in many of neighboring
countries occurs in Georgia’s peak supply season – when river
flows are at their highest
 Increased profits from carbon credits sell
www.menr.gov.ge
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10. INFRASTRUCTURE WITH NEIGHBORING
COUNTRIES
 Georgian power grid is connected
to the grids of all of neighboring
countries
 Construction of new high voltage
500/400 KV line to Turkey will be
finished by 2012
 Construction of additional
interconnection with Turkey is
under negotiation
Existing Transmission lines
• Russia 1155 MW
Existing & Planned Transmission Lines
• Turkey 2000 MW
• Armenia 835 MW
• Azerbaijan 1150 MW
www.menr.gov.ge
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11. EXPORTORIENTED PROJECTS

43 HPP on-going Projects
•
Total installed capacity of 1876 MW and annual generation up to 7.4 TWH
•
Projected investment USD 2.95 bln.
•
Construction works to be finished in 2014-2017
 Major companies operating in Georgia
•
•
•
•
•
•
•
•
•
•
Anadolu (Turkey)
Peri (Georgia)
Ağaoğlu (Turkey)
Trans Electrica Ltd.(India)
Energo Pro (Czech)
Clean Energy Group (Norway)
KGM (Georgia)
Rusmetal (Georgia)
ATAC (Turkey)
Kolin (Turkey)

7 new HPP constructions ongoing

15 new HPP constructions will be launched in 2012
www.menr.gov.ge
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12. EASY REGULATORYFRAMEWORK
 Greenfield projects based on Build-Own-Operate (B-O-O) principle
 Totally deregulated all new constructions
 No tariff is set for the newly built HPPs - investor is free to choose the
market and the price
 No special fee for the grid connection
 Free third-party access to the grid
 No license required for export and no tariff set
 Guaranteed purchase offered by GoG for three months
 Priority access for transmission to Turkey (Long term contract with
TSO) with new HPPs
www.menr.gov.ge
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13. PERMITSAND LICENSES
Construction
Permit
Generation
License
Ministry of Economy
& Sustainable
Development
GNEWRC
Above 13MW*
Issued within 60
working days
* HPPs with
www.menr.gov.ge
Issued within 30
working days
less than 13 MW do not require Generation License
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14. INVESTMENTSUPPORTING FACTORS
 Liberal Tax Legislation
• Only 6 taxes effective in Georgia
• Low and flat tax rates
• Internationally accepted methods and practices
• Minimum bureaucracy
• Light administrative burden to taxpayers
 Georgia has in force 34 OECD model Double Taxation Avoidance
Treaties
 List of treaties is expanding rapidly, additional 12 Treaties are in
line for official signature or ratification
www.menr.gov.ge
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15. INVETSMENTADVANTEGES
 Deregulated power sector with very impressive turnaround since 2004
 Distribution companies privatized and operating at a profit
 Significant existing private investment in generation assets
 GoG's strong support and commitment aimed at developing hydropower
resources
 Simplified Procedures
 Diversified & Expanding export markets including EU
www.menr.gov.ge
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16. Thank You!
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