GGU Energy and Water Utilities Investment Overview slide image

GGU Energy and Water Utilities Investment Overview

Electricity market update Current installed capacity by types, MW HPP More than 70 HPPs are under operation currently, with 3,164MW of total installed capacity. 7 conventional dam HPPs make up 68% of installed capacity. Run-of-river plants make up the rest. TPP - On top of supporting the security of supply, natural gas-fired plants also fill winter deficits. There are six TPPs, with installed capacity of 925MW. 3 TPPs have a remaining average lifetime of 12 years and will need to be replaced in the nearest future. Wind 1% TPP's 22% 1,400 1,200 1,000 800 600 400 200 0 HPP's 77% Source: Galt & Taggart Research Electricity import-export balance Electricity supply and consumption Forecasted consumption Source: ESCO 23,000 MW Forecast MW 1,400 21,000 1,200 19,000 1,000 17,000 1,5% Consumption, 5 800 15,000 600 13,000 400 200 11,000 0 9,000 Jan-15 Mar-15 May-15 Jul-15 Nov-15 Jan-16 Mar-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 TPPS HPPS Imports Internal Demand Demand on electricity in Georgia peaks in winter and the shortage that the country faces is filled by direct imports. Up to 25% of Georgia's electricity needs are imported, with up to 20% natural gas and the rest - direct electricity imports. Supply peaks in summer and the surplus is exported to neighboring countries. Electricity exports and prices, 2011-2017 Consumptions 5% Consumption growth is forecasted to be at 5% CAGR in coming 15 years. If the anticipated growth is realized and current supply does not get upgraded, Georgia will have a deficit of 9.1 tWh (more than 75% of current consumption) left to fill creating an ample room for generation resource development. Gross electricity demand in Turkey, 2000-2030 Source: Turkish market outlook 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 9.1 TWh Source: Galt & Taggart Research Source: ESCO, Geostat, EPIAS US$ '000 TWh MW 900 60,000 1,000 700 800 900 50,000 600 700 800 219 600 40,000 500 500 700 30,000 400 600 400 300 20,000 500 200 79 300 10,000 0 419 236 100 400 294 200 712 149 0 2013 2014 2015 2016 1H17 300 100 Import Export IM, US $'000 EX, US $'000 200 449 450 309 100 240 265 282 Favorable weather conditions in 2017 resulted in excess power generation and increase in the amount of exported electricity. Notably, the electricity trade balance in US$ terms remains negative. GGU exported electricity to Turkey for the first time throughout its operations. 0 2011 2012 2013 2014 2015 2016 1H17 ■Export to other countries, GHS) ■Export to Turkey, GWh (LHS) GGU October 2017 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 Realized Demand Demand projection (MENR Base scenario) page 25
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