RP Global, an Austrian independent power producer (IPP), has formed a joint venture to invest in hydropower in Georgia with Galt & Taggart, the Bank of Georgia’s investment management business.
The joint venture, known as Svaneti Hydro, says it is planning a $100 million private equity fund to develop hydropower plants in north-west Georgia with an average capacity of between 10 to 30 megawatts (MW).
With between six and eight plants planned in total, the total investment requirement is expected to be around $300 million to $350 million.
A statement said that two of the planned projects are already at an advanced stage of development with construction of the first one expected to occur in the spring of 2015. The plant has an installed capacity of 30MW.
“This partnership shows Georgia’s eagerness to advance its energy infrastructure and attract international investors,” said RP Global chief executive officer Gerhard Matzinger in the statement.
While Galt & Taggart will bring experience of the Georgian market and prior funding of hydropower projects, RP Global will offer technical expertise in having delivered hydropower projects internationally.
RP Global has previously worked on renewable energy projects with investors including the Marguerite Fund, the European Bank for Reconstruction and Development and the IFC/World Bank.