OPEX Ratio Alignment & Portfolio Valuation Overview
Private investment
stage portfolio
companies
EXTERNALLY VALUED
RENEWABLE ENERGY BUSINESS OVERVIEW
GEORGIA
CAPITAL
INVESTMENT RATIONALE
■ Growth in electricity consumption has been ~6.5x more in
TWhs than growth in electricity supply during last 10 years.
■Favorable supply-demand dynamics pushing the power
prices up
Georgia is on track to the harmonization of current energy
market structure with EU directives leading to liquid,
competitive and transparent market
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.
VALUE CREATION POTENTIAL
Opportunity to establish a renewable energy platform with
up to ~240MW 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, 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 dollar-linked cash flows.
■ Stable dividend provider capacity in the medium term.
OWNERSHIP
■ Renewable Energy is 100% owned by Georgia Capital.
MARKET OPPORTUNITY
ELECTRICITY SUPPLY AND CONSUMPTION (TWH)
Deficit (4 months)
Deficit (6 months)
1.5
TWh
TWh
1.0
07
0.5
0.0
Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21
2
1
0.6
0
-4
-5
NTOT 2345
Hydro and wind
2021 consumption
TPP
2019 consumption
Import
ELECTRICITY IMPORT AND EXPORT DYNAMICS (TWh)
-4.0
Electricity deficit during July-April.
■ 16.2% of total consumption
produced by gas-fired TPPS, 13.7% -
imported.
■ 2021 electricity consumption up by
7.6% and 13.1% from 2019 and 2020
respectively
■More than 1/3 of consumed
electricity was either import or
generated by gas-fired TPPS
■In 1H22 weighted average ESCO
balancing price reached 57.2
US$/MWh, up by ~23% y-o-y
■ In 1H22 electricity consumption
reached 7.3 TWh, up by 10% y-o-y
2021 net electricity deficit stood at
4.0 TWh, whereas in 2010, electricity
surplus was at 0.6 TWh
Consumption growth forecasted at
minimum 4.5% CAGR in coming 10
years
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Electricity exports
Electricity imports
TPP generation
Deficit
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