EIB PPT - Georgia Energy Conference 5 November 2010 - EUGBC
EIB PPT - Georgia Energy Conference 5 November 2010 - EUGBC
EIB PPT - Georgia Energy Conference 5 November 2010 - EUGBC
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<strong>Georgia</strong> <strong>Energy</strong> <strong>Conference</strong><br />
Brussels, 5 <strong>November</strong> <strong>2010</strong><br />
Enguri and Vardnili Hydro-Power Cascade Rehabilitation – A Case Study<br />
Markus Pfeffer, Senior Loan Officer<br />
European Investment Bank<br />
<strong>Energy</strong>, Environment and SMEs Division<br />
Eastern Europe, Southern Caucasus, Russia and Central Asia<br />
12/11/<strong>2010</strong> European Investment Bank<br />
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Elements of the <strong>Georgia</strong>n Power Sector Strategy<br />
Use hydropower potential (at least 32 TWh/a, of which only<br />
some 20% is presently used) to satisfy growing domestic<br />
demand and for export to neighbouring countries.<br />
Create an export link to Turkey (Black Sea Transmission<br />
Network project).<br />
Attract private investors to the country to build, own and<br />
operate up to some 80 small and large green-field hydro<br />
power plants (HPP) in the in the medium to longer term.<br />
Immediate focus on the rehabilitation of existing HPP facilities,<br />
including notably Enguri.<br />
12/11/<strong>2010</strong> European Investment Bank<br />
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The Enguri / Vardnili HPP Rehabilitation Project (1)<br />
12/11/<strong>2010</strong> European Investment Bank<br />
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The Enguri / Vardnili HPP Rehabilitation Project (2)<br />
Spilling of Water from HPPs in <strong>Georgia</strong> January – <strong>November</strong> 2009 (GWh)<br />
Source: Ministry of <strong>Energy</strong>, <strong>Georgia</strong>.<br />
12/11/<strong>2010</strong> European Investment Bank<br />
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The Enguri / Vardnili HPP Rehabilitation Project (3)<br />
Technical<br />
o Installed capacity of 1300 MW at Enguri; operational only 1180 MW.<br />
o Completion of the generator rehabilitation (last 2 of 5 units to be repaired).<br />
o Rehabilitation works at the Vardnili HPP cascade – located downstream of the<br />
Enguri HPP – required to guarantee safe water evacuation to the Black Sea.<br />
o Aim: increase output of the Enguri HPP from 3 TWh to 4 TWh per annum.<br />
Market / Economic Viability<br />
o Will use the Black Sea Transmission Network project for exports to Turkey.<br />
o Discounted generating cost of some 20 EUR/MWh, well below the estimated<br />
cost of 50 EUR/MWh for alternative new hydro generation.<br />
Legal Framework<br />
o Planning / environmental law – rehabilitation only, loan conditionality.<br />
o Action Plan for Regulatory Environment: By 2012, Electricity Market Rules to<br />
allow new domestic renewable power generation priority grid access.<br />
Financing Plan<br />
o Sovereign loans from <strong>EIB</strong> and EBRD of EUR 20m each.<br />
o A grant of EUR 5m from the Neighbourhood Investment Facility (NIF) for<br />
technical assistance (EUR 1m) and investments (EUR 4m).<br />
12/11/<strong>2010</strong> European Investment Bank<br />
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For more information…<br />
Markus Pfeffer<br />
Senior Loan Officer<br />
<strong>Energy</strong>, Environment and SMEs Division<br />
Eastern Europe, Southern Caucasus, Russia and Central Asia<br />
Europe's Neighbour and Partner Countries Department<br />
European Investment Bank<br />
98-100, boulevard Konrad Adenauer, L-2950 Luxembourg<br />
Tel: (352) 43 79 – 82711<br />
GSM: (352) 621 - 45 92 33<br />
Fax: (352) 4379 67495<br />
e-mail: m.pfeffer@eib.org<br />
http://www.eib.org/<br />
12/11/<strong>2010</strong> European Investment Bank<br />
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