Georgia Capital Shareholder and Market Opportunity Overview
Private investment
stage portfolio
companies
INTERNALY VALUED
RENEWABLE ENERGY BUSINESS OVERVIEW
INVESTMENT RATIONALE
■ Growth in electricity consumption has been 6.5x more in TWhs than growth in electricity
supply during last 10 years.
MARKET OPPORTUNITY
ELECTRICITY SUPPLY AND CONSUMPTION (TWH), 2020
■ Underutilized energy resources resulting in high availability of economically feasible projects.
Cheap to develop - up to US$ 1.5 million for 1MW hydro and up to US$ 1.4 million for wind
development on average, with 1.5x higher capacity factors compared to Europe.
Fully dollarized business, as both PPAs and market sales are set in US dollars.
1.5
Deficit (4 months)
Deficit (6 months)
VALUE CREATION POTENTIAL
1.0
GEORGIA
CAPITAL
Electricity deficit during July-
April.
■ 22% of total consumption
produced by gas-fired TPPS,
13% - imported.
■1Q21 electricity consumption
up by 3.2% y-o-y.
Opportunity to establish a renewable energy platform with up to 265MW operating capacity
over the medium term and capitalize on favorable electricity market conditions.
Diversified portfolio of hydro and wind power plants with c. 40% capacity factors, all
benefiting from long-term fixed price PPAs formed with the Government-backed entity.
Availability of competitive funding from international capital markets for pipeline projects.
High margins and EBITDA to cash-conversion rate, dollar-linked cash flows.
0.5
0.0
Jan
Feb
Mar
Apr
May
Jun
Jul Aug
■ Stable dividend provider capacity in the medium term.
OWNERSHIP
Renewable Energy is 100% owned by Georgia Capital.
Hydro and wind
TPPS
Sep Oct Nov
Import
Dec
2020 consumption - - - 2021 consumption --2019 consumption
ELECTRICITY IMPORT AND EXPORT DYNAMICS (USD million)
LOW BASE AND HIGH CDD1 POINT TOWARDS 5X INCREASE IN AC
PENETRATION BY 2030
40.0
-10.0
-32
600
-60.0
99%
400
86%
60%
50%
200
33%
35%
13%
0
Greece
Air conditioners are the
most electricity-intensive
conventional domestic
devices and increasing
penetration of ACs quickly
eats away the surplus
-110.0
-160.0
Korea Canada France Spain Italy Georgia electricity on the market in
the summer months
Mean CDD
AC penetration
Source: Worldbank, Geostat,
Georgia Capital PLC 1. cooling degree day
EurekAlert and etc.
-74
-82
-90
-104
-115
-110
-119
-125
-146
-168
-210.0
2010
2011 2012
2013 2014 2015
2016 2017 2018 2019 2020
Electricity exports
Electricity imports
I Gas imports for TPPS
Deficit
■ 2020 electricity trade deficit
stood at USD 146 million.
Consumption growth
forecasted at minimum 4.0%
CAGR in coming 10 years.
Anticipated deficit of at least
6.1 TWh by 2030.
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