GGU’s renewable energy business owns and operates 240 MW renewable energy assets: eight hydro power plants with 219 MW installed capacity and one wind power plant with 21 MW – the only operational wind farm in Georgia. Up to 150MW HPPs out of 219MW are linked to water utility services – portion of power generated by these power plants are mainly used for internal consumption of water utility business to power its water distribution network, while the remaining electricity is sold on the market. Five power plants and the wind farm benefit from Power Purchase Agreements (PPAs) formed with the Government-backed electricity market system operator.
Besides PPAs formed with the Government, GGU’s competitive advantage lies in its ability to offer full-year deals of electricity supply to direct customers.
The business is one of the most strongly positioned players in the deregulated and fast-growing electricity market.
High cash flow visibility due to long-term fixed price PPAs formed with the Government-backed electricity market system operator.
Ownership of Zhinvali HPP - the second largest hydro power plant with a reservoir in Georgia, facilitating the best year-around deals on deregulated electricity market.
Natural cash flow hedge against foreign exchange risk, as both PPAs and electricity market sales are set in US dollars.
Growing electricity market as supply lags behind the increasing demand, creating opportunities.
Ongoing reforms in electricity market in Georgia positively affecting electricity sales price.
Strong demand prospects as electricity consumption is expected to grow at least by CAGR 4% over the next 10-15 years on the back of GDP growth and increasing number of penetration of domestic appliances and installed residential and industrial air conditioning systems.