Ministry of Energy of Power Industry Development

Plan of Georgia

Main directions of Energy Policy of Georgia

• Diversification of energy supply sources, optimal utilization of energy resources and creation of reserves;

• Utilization of Georgian renewable energy resources;

• Gradual harmonization of Georgian legislation with EU legislation;

• Development of Georgian energy market and improvement of energy trade mechanism ;

• Strengthening the transit role of Georgia in the region;

• Georgia – Regional Center for clean energy production and trade;

• A coherent approach to the development and implementation of energy efficiency;

• Implementation of energy projects considering environmental factors;

• Improvement of service quality and protection of consumer interests.

2

Existing Electricity Generation Units in Georgia

Total Installed Capacity – 3719MW. Hydro Power Plants: Thermal Power Plants: 65 HPPs 5 TPPs Installed Capacity– 2795 MW. Installed Capacity - 914 MW.

3 Investment Made and Planed in Energy Sector of Georgia • Ten Year Network Development Plan of Georgia- 850 mln. USD;

• Completed Construction of 14 Hydropower Plant and 2 Thermal Power Plant - 420 MW. - 540 mln. USD;

• Ongoing 122 Projects - 4,300 MW. – 8 bln. USD;

• Ongoing Construction of 17 Power Plants - 841 MW- 1.95 bln. USD;

• Thermal Power Plants - 500 MW- 500 mln. USD;

• 7 Power Plants will become operation with total installed capacity of 422.7 MW

4 10 Year Network Development Plan Transmission Lines length increases by 1700 KM, Estimated Investment 850 Mln. USD Shilda HPP • Region- • River - Chelti • Installed Capacity - 5 MW. • Annual Generation- 30 Mln. KWH • Implemented Investment- $ 6,312,000 • Investor - LLC “ENERGIA”

Russia

Black Sea Kakheti

Turkey Armenia Azerbaijan 12 Shilda HPP

13 HPP • Region - Kakheti • River – , Ilto • Installed Capacity - 9.1 MW. • Annual Generation - 43.4 Mln. KWH • Implemented Investment - $ 9,800,000 • Investor - LLC “GEOENERGY”

Russia

Black Sea Kakheti

Turkey Armenia Azerbaijan 14 Akhmeta HPP

15 Pshavela HPP • Region - Kakheti • River - Stori • Installed Capacity - 1.95 MW. • Annual Generation - 9.5 Mln.KWH • Implemented Investment - $ 2,300,000 • Investor - LLC “STORI POWER”

Russia

Black Sea Kakheti

Turkey Armenia Azerbaijan 16 Pshavela HPP

17 Alazani 2 HPP • Region - Kakheti • River – Alazani • Installed Capacity - 6 MW. • Annual Generation - 40 Mln. KWh • Implemented Investment - $ 7,602,269 • Investor - LTD “ GEORGIAN INTERNATIONAL ENERGY CORPORATION”

Russia

Black Sea Kakheti

Turkey Armenia Azerbaijan 18 Alazani 2 HPP

19 Khadori 2 HPP • Region - Kakheti • River – Alazani • Installed Capacity - 5.4 MW. • Annual Generation - 30 Mln. KWH • Implemented Investment - $ 4,930,000 • Investor – LLC “PERI”

Russia

Black Sea Kakheti

Turkey Armenia Azerbaijan 20 Khadori 2 HPP

21 Bakhvi 3 HPP • Region - • River - Bakhvistskali • Installed Capacity - 10 MW. • Annual Generation - 35 Mln. KWh • Implemented Investment - $ 14,139,039 • Investor - LLC “ BAKHVI HYDRO POWER”

Russia

Black Sea Guria

Azerbaijan Turkey Armenia 22 Bakhvi 3 HPP

23 Larsi HPP • Region – -Mtianeti • River - Tergi • Installed Capacity - 19 MW. • Annual Generation - 98 Mln. KWh • Implemented Investment - $ 17,543,000 • Investor – LLC “ENERGIA”

Russia

Mtskheta- Mtianeti Black Sea

Azerbaijan Turkey Armenia 24 Larsi HPP

25 HPP • Region – Mtskheta-Mtianeti • River - Tergi • Installed Capacity - 8.5 MW. • Annual Generation - 50 Mln. Kwh • Implemented Investment - $ 13,500,000 • Investor – LLC “ENERGO ARAGVI”

Russia

Mtskheta- Mtianeti Black Sea

Azerbaijan Turkey Armenia 26 Aragvi HPP

27 Kazbegi HPP • Region – Mtskheta-Mtianeti • River - Brolis Tskali • Installed Capacity - 6 MW. • Annual Generation - 30 Mln. KWh • Implemented Investment - $ 3,000,000 • Investor - LLC “KAZBEGIHESI”

Russia

Mtskheta- Mtianeti Black Sea

Azerbaijan Turkey Armenia 28 Kazbegi HPP

29 HPP • Region – Samtskhe-Djavakheti • River - Paravani • Installed Capacity- 86.54 MW. • Annual Generation - 410 Mln. KWh • Implemented Investment - $196,000,000 • Investor - LLC “GEORGIA – URBAN ENERJI”

Russia

Black Sea Samtskhe-

Azerbaijan Armenia Turkey 30 Paravani HPP

31 HPP

• Region – Racha- and Kvemo • River – Ritseula and Khedetura • Installed Capacity - 11 MW. • Annual Generation - 45.08 Mln KWh. • Implemented Investment - $ 7,156,194 • Investor – LLC “GEORGIAN INTERNATIONAL ENERGY CORPORATION”

Russia

Racha-Lechkhumi and Kvemo Svaneti

Black Sea

Azerbaijan Turkey Armenia 32 Racha HPP

33 HPP • Region – Kvemo • River – • Installed Capacity - 2.5 MW. • Annual Generation - 11 Mln.KWh • Implemented Investment - $ 1,200,000 • Investor - LLC “ WATER ENERGY”

Russia

Black Sea

Kvemo Kartli

Turkey Armenia Azerbaijan 34 Kazreti HPP

35 Debeda HPP • Region – • River - Debeda • Installed Capacity - 3 MW. • Annual Generation - 10.5 Mln.KWh. • Implemented Investment - $ 4,200,000 • Investor - LLC “ HYDRO GEORGIA”

Russia

Black Sea

Kvemo Kartli

Turkey Armenia Azerbaijan 36 Debeda HPP

37 TPP • Region – Kvemo Kartli • Installed Capacity - 231.2 MW. • Annual Generation - 1.6 Mln.KWh • Implemented Investment - 231 Mln. USD • Investors - JSC „PARTNERSHIP FUND“ AND JSC „GEORGIAN OIL & GAS CORPORATION”

Russia

Black Sea

Kvemo Kartli

Turkey Armenia Azerbaijan 38 Gardabani TPP

39 Power Plants Commenced In Recent Years Total Installed Capacity 420 MW Total Investment 540 Mln. USD

N Project Company Region Installed Capacity (MW) 1 Bakhvi 3 HPP LLC “BAKHVI HYDRO POWER” Guria 10 2 Aragvi HPP LLC “ENERGO ARAGVI” Mtskheta-Mtianeti 8.5 3 Shilda HPP LLC “ENERGIA” Kakheti 5 4 Larsi HPP LLC “ENERGIA” Mtskheta-Mtianeti 19 5 Akhmeta HPP LLC ‘”GEOENERGY” Kakheti 9.1 6 Kazbegi HPP LLC “KAZBEGIHESI” Mtskheta-Mtianeti 6 7 Paravani HPP LLC “GEORGIA-URBAN ENERGY” Samtskhe-Javakheti 86.54 8 Pshavela HPP LLC “STORI POWER” Kakheti 1.95 9 Alazani 2 HPP LLC “GEORGIAN INTERNATIONAL ENERGY CORPORATION” Kakheti 6 10 Khadori 2 HPP LLC “PERI” Kakheti 5.4 11 Racha HPP LLC “GEORGAIN INTERNATIONAL ENERGY CORPORATION” Racha-Lechkhumi and Kvemo Svaneti 11 12 Kazreti HPP LLC “WATER ENERGY” Kvemo Kartli 2.5 13 Shakshaketi HPP LLC "Medgroup Georgia" 1.5

14 Debeda HPP LLC “HYDRO ENERGY” Kvemo Kartli 3 JSC “PARTNERSHIP FUND” and JSC “GEORGIAN OIL & GAS Gardabani TPP Kvemo Kartli 231.2 15 CORPORATION 16 TPP LLC "Saknakhshiri" 13.2 40 Ongoing Construction Stage Projects 16 HPPs and 1 Wind Power Plant- 841 MW. Investment Cost - 1.95 Bln. USD Kasleti 2 HPP – 8.1 MW Lukhuni 2 HPP- 12 MW

Nenskra HPP -280 MW Dariali HPP- 108 MW

Rachkha HPP – 10.25 MW

Saguramo HPP – 4.2 MW 2 HPP – 41.6 MW

Nabeglavi HPP – 1.9 MW

Skhalta HPP – 6 MW

Shuakhevi HPP – 187 MW

Okropilaura and Goginaura HPPs – 3.6 MW HPP – 47.48 MW Kirnati HPP – Kirnati HPP – 51.25 Mw 6 MW Mtkvari HPP – 53 MW Wind Power Plant – 20.7 MW 41 7 Power Plants will Become Operational in 2016

Installed capacity N Project Company Region Investment (MW)

1 Dariali HPP JSC DARIALI ENERGY Mtskheta-Mtianeti 108.0 105 Mln. USD

2 HPP LLC ADJARISTSQALI GEORGIA Achara 187.0 400 Mln. USD

3 Kirnati HPP LLC ACHAR ENERGY-2007 Achara 51.3 90 Mln. USD 4 Khelvachauri 1 HPP LLC ACHAR ENERGY-2007 Achara 47.8 70 Mln. USD

LLC HYDRO DEVELOPMENT 5 Kintrisha HPP Achara 6.0 8 Mln. USD COMPANY

6 Nabeglavi HPP LLC AE-SGI Energy I Guria 1.9 2.8 Mln.USD LLC KARTLI WIND POWER 7 Kartli Wind Power Plant Shida Kartli 20.7 34 Mln. USD PLANT“ Total Installed Capacity of 7 Projects is 422.7 MW and Investment Cost – 710 Mln USD

43 The First wind Power Plant “KARTLI”

• Wind Power Plant “Kartli” is a pilot alternative energy project in Georgia.

• First stage involves implementation of 20 MW Installed Capacity Wind Project, with the perspective of up to 200 MW development.

• The European Bank for Reconstruction and Development (EBRD) allocated 24,300,000 USD for project implementation.

• Construction of Wind Power Plant starts in March 2016 and will be completed in September 2016.

44 Biomass 3 MW Thermal Power Plant

• Installed Capacity is 3 MW (2 Mw + 1 MW);

• Annual Generation is 25,920,000 KWh;

• Project Location is in area, -Rustavi highway, 17th kilometer, village Krtsanisi;

• TPPs will operate on agricultural wastes;

• The project is relevant and can be applied to other regions of the country, according on its great potential.

45 FDI in Energy Sector of Georgia

2012 IV- 2015 570 mln. USD

1%

9% 3% Agriculture, fishing 10% Mining

12% Manufacturing

Energy sector 13% Construction 6% Hotels and restaurants 2% Transports and communications

Health and social work 12% Real Estate

28% 4% Financial sector

Other sectors

39 Strategy To Move Forward

 To develop east-west and north-south energy transportation infrastructure in order to increase transit capacity of the country

 To improve social and economic condition by attracting new investments in renewable energy projects and create new employment opportunities for local people

 To expand transmission infrastructure by investing in the construction of new interconnection lines.

 To strengthen co-operation with the international organizations in order to accelerate integration of the country into European and Euro-Atlantic organizations

47