The “AYFB’: Energy investment environment in 2015

On June 5, the analyst of the organization “Association of Young Financiers and Businessmen - AYFB”, Andria Gvidiani, held a briefing at the “Reportiori” press-club.

The analyst has stated, that: “the “Association of Young Financiers and Businessmen – AYFB” is  interested in the investment environment and projects, to be implemented in 2015 within the energy sector”.     

According to the “AYFB” appraisal, the works in terms of acquisition of the new generation  sources  within the energy sector is quite active, “however, the Young Financiers believe, that construction of  the large power plants , such as Khudonhesi, Nenskra, Namakhvani,  along with the small and medium power plant construction is also very important . Such a big power plant constructions will promote energy sector independence and it’s sustainable development. Besides, we consider, that communication of the Government and investing companies  with the  population should be more active, in order to explain the importance of the big power plants for the development of the country’s economy and energy sector. It should also be noted, that precedents of such successful negotiations with the population, will encourage other investors as well.”- announced Andria Gvidiani.    

Construction of the Southern Gas Corridor, holds the biggest share within the energy investment portfolio and according to the projections, 300 million USD should be invested in the project in 2015. The project by TANAP is one of the most important international energy projects, where Georgia is involved. The project aims to bring Azerbaijan gas to Europe (Via Georgia and Turkey). Total investment volume of the project amounts 40 billion USD, out of which 12 billion USD is allocated to be spent in Georgia. Investments are allocated according to the project by years, and 300 million USD should be spent in 2015. The “AYFB” considers, that the Southern Gas Corridor project will promote regional role of Georgia and the level of independence of the energy  sector since Georgia is going to get 5 % of the natural gas, transmitted through it’s territory. In addition, project is also important in record of employment as well, since 2000 people at the stage of constructing, and 130 people after the finish of the construction, are going to be employed.     

As for the power plants, construction of 9 power plants are in progress by now. Their total investment volume  amounts about 800 million USD, which is allocated by years and an investment of 160 million USD is going to be allocated by 2015 only. It should be noted, that due to the ongoing constructions, up to 530 MW capacity of the energy is going to be added to the current energy, consisting 24 % of existing hydropower generation.  

When we talk about an investment environment of the energy sector, government policy on the utilization of alternative energy resources should be emphasized.  For the first time, this year, the Government has launched construction of the wind power plant “Kartli”. Later, European Bank for Reconstruction and Development (EBRD) has also expressed the will for wind power plant construction. Total investment volume of the project amounts 35 million USD, installed capacity – 20 MW, estimated annual capacity – 87 million kilowatt hour.  The “AYFB”, in turn, welcomes alternative energy resources development and considers, that it is very important to carry on the work in this direction.”

  The “AYFB” hopes, that agreement regarding the construction of the large power plants will be reached with both, the environmental organizations and local population.