30 May SEAF Fund Invests in Green Energy Power Plant in The Republic of Georgia
In December 2012, Small Enterprise Assistance Funds (“SEAF”) made an investment in Alazani II, a run-of-the-water hydro power plant in the Republic of Georgia. The investment, made through SEAF’s Caucasus Growth Fund (“CGF”), signifies SEAF’s continued interest in investing in green energy.
CGF made a USD $3,000,000 investment in Alazani II, which will be used to construct the hydro plant. The plant will be built on the Bakurtsikhe Spillway, and will have an estimated annual output of 40.65 million KHw. The plant will be the second phase of an existing Alazani hydro power plant, and is expected to improve the energy utilization index of the existing lower irrigation system.
Alazani II is owned and operated by Georgian International Energy Corporation (GIEC), one of Georgia’s strongest industrial groups. The Government of Georgia has placed the construction of hydro power plants among its top priorities, including through favorable legislation towards the green energy producer. The plant is forecast to provide ample clean energy to Georgia, with an opportunity to open up the export market to Turkey. Construction is expected to be completed by summer of 2014.
SEAF has proven to be a dedicated investor in green energy, with a particular interest in hydro power plants. This will mark SEAF’s third investment in a hydro plant, following a previous investment in Ritseula Hesi, a hydro power operator in Racha state Georgia and an investment in Hidroelectrica, a run of the river hydropower plant in Peru. SEAF successfully exited Hidroelectrica in 2012.