Zestaponi HPP

Zestaponi Cascade on Kvirila River - A preliminary assessment

The proposed 4-stage 89MW cascade on the Kvirila and Sakraula Rivers in the Zestaponi District looks to take advantage of existing irrigation system headwork. The site is located between the Black Sea port and Tbilisi, along the railroad, thus lending itself as a potential site for industrial investments. Total annual production is estimated at 348GW. Despite the advantages of its location and the potential for a phasing in of the individual cascade, the site does not appear to be financially viable. The tariff required to cover the costs of capital is estimated at around USc 12,3, which is far higher than the marginal cost of thermal generation, as well as the other sites promoted by this project. It is therefore recommended that this project not be considered at this point by investors.

Table A         Key results for the Zestaponi Cascade (Costs in USD)

* Reservoir volume of Enguri Arch Dam.

** This tariff ensures an RoE of 20% over the life of the project.

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