Portfolio Valuation and Ameriabank Acquisition Update
Private investment
stage portfolio
companies
EXTERNALLY VALUED
RENEWABLE ENERGY BUSINESS OVERVIEW
INVESTMENT RATIONALE
■ Growth in electricity consumption has been ~3.0x more in TWhs
than growth in electricity supply since 2010, resulting in increased
deficit.
■Favorable supply-demand dynamics pushing the power prices up.
Georgia is on track to the harmonization of the current energy
market structure with EU directives leading to a liquid,
competitive and transparent market.
■ Natural cash flow hedge with fully dollarised revenues.
VALUE CREATION POTENTIAL
Opportunity to establish a renewable energy platform with up to
~270MW 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 favorable mix of merchant sales
and government PPAs, providing high visibility and significant
upsides.
High margins and dollar-linked cash flows.
Availability of competitive green funding from local and
international capital markets for pipeline projects.
■ Stable dividend provider capacity in the medium term.
OWNERSHIP
■ Renewable Energy is 100% owned by Georgia Capital.
TWh
TWh
ELECTRICITY CONSUMPTION
GEORGIA
CAPITAL
20.0
16.0
12.0
9.3 9.4
4.1% average consumption growth rate
12.6 12.8
11.9
11.0
9.7 10.2 10.4
13.8 14.2
13.1
12.2
8.4
8.0
4.0
0.0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Electricity consumption
ELECTRICITY IMPORT AND EXPORT DYNAMICS (TWh)
22.7% of total consumption
produced by gas-fired thermal
power plants (TPPs), 5.2% -
imported.
2023 electricity consumption
decreased by 7.8% compared to
2022
27.9% of consumed electricity was
either imported or generated by
gas-fired TPPs.
■In 2023 weighted average ESCO
balancing price reached 53.0
US$/MWh, down by 4.6% y-o-y.
2.0
0.6
0.0
-2.0
-4.0
-6.0
(2.8)
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Electricity exports
Electricity imports
Generation of TPPS
Deficit
■ 2023 net electricity deficit stood at
2.8 TWh, whereas in 2010, electricity
surplus was at 0.6 TWh
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