hpp investment opportunities
TRANSCRIPT
Hydropower Potential and Investment
Opportunities in Georgia
Ministry of Energy and
Natural Resources of Georgia
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
•
• • •
Reliable transit country
Net electricity exporter to all four
neighboring countries
Rapidly expandable energy
markets
Construction of additional
electricity export infrastructure 2 www.menr.gov.ge
HIG
H
LO
W
HIG
H
LO
W
ELECTRICITYBALANCE
3
100%
92%
8%
Current Projected Seasonal Asymmetry of Generation and Consumption
Winter Summer
Generation
Consumption
2004
6.9
6.0
0.9
-1.2
8.1
5.7
1.7
0.7
1.8
2006
7.6
5.4
2.2
-0.7
8.3
5.9
2.0
0.4
1.84
2005
7.1
6.0
1.0
-1.3
8.3
5.9
1.9
0.5
1.8
Tw/h
Generation
Hydro
Thermal
Net Import / Export
Consumption
Distribution
Direct Customers
Transmission Losses
Consumption per capita
2007
8.3
6.9
1.5
0.2
8.1
5.9
2.0
0.2
1.9
2008
8.6
7.3
1.3
0.3
8.3
6.0
2.1
0.2
1.9
2009
8.9
7.7
1.2
0.5
8.4
6.1
2.1
0.2
1.95
2010
10.1
9.3
0.8
1.3
8.8
6.4
2.1
0.3
1.97
85%
15%
2004 2010
Thermal & Import Hydro
Before
www.menr.gov.ge
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
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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
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HPPs PRE FEASIBILITYSTUDY INCLUDES
Financials/Ratios Income Statement
Cash Flow
Balance Sheet
NPV
IRR
Technical Projection HPPs Technical Data Hydrological Data Topographic
Maps
Other Necessary Data 6 www.menr.gov.ge
7
Project Name River Name Region
POTENTIAL MEDIUM & SMALL SIZE HYDRO PROJECTS Projected
Installed Capacity
MW
Regulation Type
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
Chanis Tskali
Lebarde
Tekhuri
Tsachkhuru
Nakra
Nakra
Khumpreri
Kheledula
Kheledula
Kheledula
Stori
Stori
Stori
Stori
Cheshura
Jejora
Jejora
Kvirila
Dumala
Khanistskali
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
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
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
www.menr.gov.ge
POTENTIAL MEDIUM & SMALL SIZE HYDRO PROJECTS
8
Project Name River Name Region Projected
Installed Capacity MW Regulation Type
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
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
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
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
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
www.menr.gov.ge
EXPORTOPPORTUNITIES
9
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
INFRASTRUCTURE WITH NEIGHBORING
COUNTRIES
Existing Transmission lines
• Russia 1155 MW
Existing & Planned Transmission Lines
• Turkey 2000 MW • Armenia 835 MW • Azerbaijan 1150 MW
10
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
www.menr.gov.ge
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
7 new HPP constructions ongoing 15 new HPP constructions will be launched in 2012
11
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)
www.menr.gov.ge
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
12 www.menr.gov.ge
PERMITSAND LICENSES
13
* HPPs with less than 13 MW do not require Generation License
Construction
Permit
Ministry of Economy & Sustainable Development
Issued within 60
working days
Generation
License
GNEWRC
Above 13MW*
Issued within 30
working days
www.menr.gov.ge
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
14 www.menr.gov.ge
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
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Thank You!
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