Renewable energy

Leap into the Future

From 2007 to 2011, Georgia was a net electricity exporter, but since 2012, the country has become a net importer of electricity, with the only exception being 2016. With the completion of the HPPs currently under construction, exports are expected to grow in the summer period, however, without additional Power Plants, Georgia’s generation capacity will not be sufficient to meet domestic demand in the long term, as per capita electricity consumption and industrial sector continue to grow. According to estimates, the deficit by 2025 will reach more than 3 TWh.

Georgia offers an attractive opportunity for investments in wind power plants. The wind potential of Georgia is estimated at 4 TWh. Wind power offers a great addition to hydropower generations, as wind generation is higher during winter when hydro generation is lower. It is estimated that a share of power generated by wind in Georgia will reach 10% by the year 2030.IBERIA Capital has developed the first and largest commercial wind power plant project, that is approaching the construction stage soon. We also work on many different greenfield projects in the sector.

Due to the geographical location of Georgia, the emanation of the Sun is rather high. In most regions of the country, there are 250-280 sunny days in a year, which is approximately 1,900-2,200 hours per year. The annual radiation of the Sun varies depending on regions from 1,250-1,800 KWh/m2, while the average sun radiation equals 4.2 KWh/m2.Before the end of 2020, Tender for 50 MW solar project, developed with the help of EBRD, will be announced. IBERIA Capital, with its innovative approaches, tries to develop Solar Power Projects that would capitalize upon the most efficient ways of utilization of the excess renewable energy in the country.

Georgia has more than 20,000 rivers and almost 300 of them provide an excellent opportunity for hydropower generation. Georgia is one of the top countries in terms of water resources per capita and it is logical that today about 80% of total electricity is generated from Hydro Power.All new hydropower plants are fully deregulated. An investor is free to choose the market and negotiate the price. HPPs with an installed capacity of 13MW or less do not require generation license and HPPs that have installed capacity of 2 MW or less don't need environmental impact permit either. They can sell generated electricity to direct consumers without a third party. Additionally, the license for export is not required.IBERIA Capital has developed a number of small and medium-sized hydropower plant projects. The 1.255 MW Upper Orozmani HPP is commissioned. The five other small HPP projects with totoal capacity of 20 MW are at the late development stage.

Exploring Adaptive and Flexible Manufacturing Opportunties

Strategically located at the crossroads of trade and commerce between East and West, Georgia is ideally positioned to access markets of Asia and Europe, as well as the Middle East and the CIS countries. Business-friendly regulations, a favorable tax and customs framework and relatively low-cost work environment have played a key role in developing manufacturing sector in Georgia.

The food, metals and non-metallic mineral product provide the largest industrial base for Georgia at the moment, while Automotive and Aerospace, Electronics and pharmaceutical production are the fastest growing industries. Thus, country offers plenty of opportunities within the manufacturing industry.

Why Invest In Manufacturing

Free Trade Agreements with 2.3 billon consumer markets
Young, skilled and competitively priced Labour Force
Growth-friendly tax environment
Low utility costs

Real Estate & Hospitality

THE most secure invesments

Strategically located linking Europe with Asia, Hospitality and Real Estate companies in Georgia find that well-developed unique cultural heritage, various types of resorts and transport networks, high occupancy rates, alongside rapidly growing number of international visitors and create a lucrative and flexible legal framework exceptional business environment for the sector

Tbilisi is the capital of Georgia and the key destination for tourists and business travelers
Tbilisi International Airport has around 120 flights per week through 16 different airlines
The stock of international hotel rooms is expected to double by 2023
In 2019, the total number of hotel rooms in Tbilisi increased by 23%, amounting to 12,430 units and 541 hotels
Unprecedented occupancy rate 77% was observed during the August month 2019
There are 18 international hotels in the current pipeline with a total investment volume of approximately USD 700 million

Batumi, capital of Adjara Region, is the second most visited cities in Georgia
Adjara Region was visited by an unprecedented number of travelers in 2019 - around 2 million
The seaside resort hotels market consists of 484 hotels with 13,116 rooms. Since 2018, the number of hotel rooms in Georgian seaside resorts has increased by 8.5%
Internationally-branded hotels in Batumi have performed well, keeping the occupancy rate at it highest historic level 65%, ADR 85$ and RevPAR 55$
Batumi International Airport received 279K international travelers which represents a 7% increase
In 2019 the number of international trips from EU countries has increased by 43% at seaside resorts

Mountains occupy 80% of Georgia’s territory and most of Georgia’s mountain resorts have 5-6 months of permanent snow. Primary mountain resorts include Gudauri, Bakuriani, Goderdzi, Tetnuldi, Hatsvali, Racha and Gomarduli
Mountain resorts in Georgia have a capacity to attract at least additional 1.5 mln visitors compared to current numbers
Georgian ski resorts have hosted more than 550,000 visitors during the 2017-2018 winter season
Among other ski resorts, Mestia hotels recorded the highest occupancy rate 48% in 2019. While Gudauri has the highest ADR at USD 83

Industries

At IBERIA Capital we cover several industries and look for attractive investment opportunities. The unique industry knowledge and hands-on experience enable us to be one step ahead of the others.