Russia’s Inter RAO Sells Thermal Power Assets in Georgia

Thermal power plant in Gardabani, which Russia’s state-controlled power trader Inter RAO has sold. Photo from Mtkvari Energy website

Russia’s state-controlled power trader Inter RAO said on June 2 that it finalized sale of its thermal power assets in Georgia to “a consortium of international investors” for an undisclosed price.

Georgia’s one of the largest industrial holdings, Georgian Industrial Group (GIG), said its affiliated company is a member of the consortium, which bought Mtkvari Energy from Inter RAO.

Assets in question involve two gas-fired thermal power units with the installed capacity of 300 megawatts, located in Gardabani.

GIG said that it plans to operate the assets and implement “strategic projects” with its unspecified “business partners from China.”

Head of Inter RAO’s investments unit Ilnar Mirsiyapov said that the sale of thermal power assets in Georgia is part of the company’s strategy to focus mostly “on the development of our business in the Russian Federation.”

Mirsiyapov, however, also said: “We will continue our active involvement in Georgia in both hydro generation and electricity transmission and retail.”

Inter RAO holds 75.1% of shares in Telasi, an electricity distributor in Georgian capital Tbilisi; the rest of the shares are held by the Georgian state investment fund, Partnership Fund.

Inter RAO also owns two hydro power plants in Georgia – Khrami 1 and Khrami 2.

The new acquisition signals expansion of GIG’s thermal power assets.

GIG has already owned 300 MW gas-fired thermal power plant, also located in Gardabani, through its daughter company Georgian International Energy Corporation (GIEC).

GIG, which operates coal mines in Tkibuli, also owns 13.2 MW coal-fired thermal power plant and eight small hydro power plants with total installed capacity of 49 MW.