- Press Releases
November 15 (Renewables Now) - UK-based holding company Georgia Capital Plc (LON:CGEO) today announced it has won a public auction to buy the 20.7-MW Qartli wind farm in Georgia’s Shida Kartli administrative region.
Georgia Capital will pay USD 14.4 million (EUR 13.1m) to acquire Qartli Wind Farm LLC, the wind park’s holding company, after winning the auction held by the Georgian Energy Development Fund and Georgian Oil and Gas Corporation. The gross debt of the asset, sold by state-owned Georgian Energy Development Fund JSC and Georgian Oil and Gas Corporation JSC, is USD 17.4 million.
The power plant, which is the first and only operational wind farm in Georgia, is located in the municipalities of Gori and Kareli and has been generating power since late 2016. The six-turbine plant’s estimated annual generation amounts to 85 GWh and is being sold under a 10-year power purchase agreement (PPA) with the Georgian government at USD 65 per MWh.
The acquisition is seen to add around USD 4 million in earnings before interest, tax, depreciation and amortisation (EBITDA) to Georgia Capital’s Renewable Energy Business's income statement in 2020. The company estimates the return on invested capital will be around 12%, while the portfolio of its renewables business will grow to 91 MW.
(USD 1.0 = EUR 0.906)