March 4 (Renewables Now) - RP Global has sold its 35% stake in Georgian Renewable Power Company (GRPC), a joint venture (JV) it formed six years ago with UK-based holding company Georgia Capital Plc (LON:CGEO).
In a statement on Tuesday, the Vienna-based developer and independent power producer (IPP) said it will use the proceeds from the sale plus an earn-out to reinvest in its own project pipeline in Western Europe and additional emerging markets.
According to Georgia Capital, which is the buyer in this transaction, the terms specify that RP Global is to receive a fixed consideration of USD 13.8 million (EUR 12.4m), with up to USD 4.5 million to be paid in the future if market power prices in 2023-2025 become higher compared to current forecasts.
After the exit from GRPC, RP Global will reduce its presence in Georgia to an advisory role in a hydro project it helped bring to construction, and in two wind projects with 110 MW in total that reached an advanced stage of development, the company said.
The JV started with a goal to implement a portfolio of small hydropower plants (HPPs) in the former Soviet republic. It later expanded its activities to include solar and wind projects.
Under the GRPC umbrella, the partners built and commissioned two HPPs totalling 50 MW in Georgia’s Svaneti region.
(USD 1.0 = EUR 0.90)