Georgia announces new Dzegvi HPP
UK investment company to build, operate new power station

A new Hydro Power Plant (HPP) will be built on the Mtkvari River to increase the country’s power generation.

Today the Government of Georgia approved the draft Memorandum of Understanding (MoU) that will be signed between the Georgia’s Energy Ministry and Geopower, a UK investment company that finances and operates energy projects around the world.

The MoU outlined future action to establish the HPP including carrying out technical and economic feasibility studies, procurement, construction and operation of the new HPP, located in Dzegvi village in Georgia’s Mtskheta-Mtianeti region.

The basic parameters of the project have not been finalised however Georgia’s Ministry of Energy said the total installed capacity of the Dzegvi HPP was expected to be 15.7 MW. Average annual generation could reach 82.44 GW/h and the capacity usage ratio would be 59.94 percent.

Construction of the HPP was expected to cost $24 million USD, said the Ministry.

After signing the MoU Geopower will have the right to start technical and economic feasibility studies and prepare a report about the HPP’s impact on the environment. The results should be presented to the Government and if approved, the contract to build the Dzegvi HPP will be signed between the Government and Geopower.

Geopower must obtain a construction permit three months after signing the contract, and must build the power plant and ensure it is operational within 30 months of receiving construction permission.

Once operating, electricity generated at the site will be supplied only to Georgia for the first 15 years. After that Geopower will be allowed to export the electricity, said the Ministry.