Georgia sells generator
IDM Energy Corp. of the USA has announced its acquisition of a majority interest in Georgian hydropower electricity generator Zages Ltd. Under the terms of the sale, IDM Energy, a wholly-owned subsidiary of IDM Environmental of New Jersey, has made an initial investment in Zages and may invest more in the future. Zages recently closed a power sale agreement with Telasi, Tblisi`s electricity distributor, under which Telasi will buy all power generated by Zages` power plant for six years.
IDM will undertake a technical examination of the power plant to assess its repair needs. Zages, meanwhile, is to start negotiations to extend its five-year roll-over lease of the plant to a fixed term of 25 years. Depending on the outcome of the examination and of Zages` negotiations, IDM may invest up to $9m in rehabilitation of the 42 MW plant.
Telasi serves 370 000 industrial, commercial and residential customers in Tblisi, equivalent to half the power needs of Georgia. It is 75 per cent owned by US company AES.