Enlight to buy rights to 100-MW wind project in Georgia

Israel’s Enlight Renewable Energy Ltd (TLV:ENLT) has agreed to acquire the rights to a 100-MW wind power project that is under development in Georgia.

The project in question is planned to be fully developed within 18-24 months. At a later point, it could be expanded with an additional 200 MW of capacity, depending on the wind energy quotas in Georgia and additional conditions, Enlight said on Wednesday.

The 100-MW scheme, seen to require an investment of between USD 135 million (EUR 122.5m) and USD 155 million, is being developed by a tie-up of an engineering firm operating in central and Eastern Europe and a Georgian development company. The partners are in talks to sign a detailed framework agreement with the national government that is expected to include a power purchase agreement (PPA). The anticipated rate is USD 65 per MWh for nine months annually for a total of 10 year. Power sales in the remaining three months will be carried out under market conditions. After the 10-year period, the power will be sold at market prices.

Part of the land rights are already in place and an environmental permitting process for the project has been initiated. There is no certainty, however, that its development will be completed, Enlight noted. If build, the power plant will bring gross revenues of USD 18 million-21 million a year during the PPA term and an average of USD 25-30 million a year after that.

(USD 1.0 = EUR 0.908)

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