Enlight Renewable Energy has signed an agreement to buy the rights in a 100MW wind energy project in the Qawqaz state Georgia. The project is under development stages and expected to complete development within 18-24 months. The project has already secured part of the rights in the relevant lands and is in the process of achieving environmental permits. The project may expand with an additional 200MW.
The project company has entered a memorandum of understandings with Georgia's government and is negotiating a detailed framework agreement, which is expected to include the Power Purchase Agreement (PPA), and which will anchor the project's right to be connected to Georgia's national grid.
The PPA will be entered at the expected feed-in tariff of US$ 65 per megawatt hour for nine months every year, for a period of 10 years. The sale of power in the remaining three months will be made under market conditions. At the end of the 10-year PPA period, the power will be sold at market prices.
The total cost of the project is estimated at $ 135-155 million, including construction, financing costs, and the acquisition of project rights. The gross revenues from the project are estimated at $ 18-21 million a year during the PPA term, and an average of $ 25-30 million a year after that.