Introduction

On these pages, technically and economically prospective sites are presented to investors by means of pre-investment studies. These studies include;

• An introduction to the proposed design of the site, including a description of the hydrology, generation calculations, construction cost estimates and initial environmental screening.
• A summary of the risks and opportunities regarding the marketing of electricity - based on the findings of this project.
• A brief guide to the permitting regulations associated with the registration and construction, as well as generation, of a greenfield HPP in Georgia.
• An indicative financial analysis, including an estimated cost reflective tariff, as well as least cost considerations and sensitivity analyses.
• Maps, pictures and drawings of the site and the proposed designs will be provided.
• Key characteristics of each site will be provided so as to allow for interested developers to easily adjust costs and evaluate the projects and the proposed designs.
• Leading international hydropower engineers and environmental consultants have been responsible for the cost estimates and environmental assessment of the sites.

In total 7 sites (including 4 cascade schemes) have been studied and presented, all of them approved by the Ministry of Energy in Georgia for promotion to investors. The sites have been selected during a pre-screening process involving some 50 sites. The sites vary in size from 10MW to 638MW, but all together represent a potential considerable increase in the installed capacity in Georgia.

While largely un-tested, the regulatory framework for greenfield HPPs in Georgia appears favourable. In particular, the regulator allows for a full-cost tariff during a 7-year full depreciation of assets. Our calculations indicate that most of the sites, during construction and a 7-year period of full production, the tariff is highly competitive with thermal generation - the current marginal generation source.