{"id":142450,"date":"2026-06-11T09:33:33","date_gmt":"2026-06-11T09:33:33","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=142450"},"modified":"2026-06-11T11:50:10","modified_gmt":"2026-06-11T11:50:10","slug":"georgia-renewable-energy","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/georgia-renewable-energy\/","title":{"rendered":"Georgia: Renewable Energy"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-142450","comparative_guide","type-comparative_guide","status-publish","hentry","guides-renewable-energy","jurisdictions-georgia"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Andersen in Georgia<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2025\/09\/logo-1080x1080-1.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Andersen in Georgia<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2025\/09\/logo-1080x1080-1.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Renewable Energy laws and regulations applicable in Georgia<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction have an established renewable energy industry? What are the main types and sizes of current and planned renewable energy projects? What are the current production levels? What is the generation mix (conventional vs renewables) in your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Georgia has a long\u2011standing renewables base anchored in hydropower and a growing policy framework for non\u2011hydro renewables (solar, wind, geothermal, biomass). The legal backbone is the Law on Promotion of Generation and Consumption of Energy from Renewable Sources (adopted 20 December 2019) and the Law on Energy and Water Supply (adopted 20 December 2019), with 2024 framework legislation on energy efficiency and buildings. Those instruments collectively establish targets to 2030, market\u2011access rules, metering, guarantees\/accounting rules, and energy\u2011efficiency obligations.<\/p>\n<p>Most installed renewable capacity is run of river and reservoir hydropower; operating onshore wind projects exist, and utility scale and distributed solar projects are emerging. Typical project sizes range from small distributed PV systems to utility scale hydro (hundreds of MW) and wind (tens of MW per plant), with a pipeline of additional wind and solar sites.<\/p>\n<p>The generation mix is currently dominated by hydropower, though there is a growing contribution from wind and solar.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are your country's net zero\/carbon reduction targets? Are they law or an aspiration?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Georgia\u2019s carbon reduction and net-zero targets are structured as a comprehensive framework of statutory obligations and international commitments rather than a single \u201cNet-Zero Act.\u201d These targets hold binding force within the Georgian legal system through several key legislative instruments:<\/p>\n<p><strong>Renewable Energy Targets (2030) \u2013<\/strong> The Law of Georgia on Promotion of Generation and Consumption of Energy from Renewable Sources legislates specific national targets for the share of renewable energy in gross final energy consumption by 2030. These are legally binding, enacted by statute, and supported by defined methodologies for counting and statistical transfers.<\/p>\n<p><strong>Energy Efficiency and Savings \u2013<\/strong> The Law of Georgia on Energy Efficiency establishes statutory national energy-efficiency targets and reporting schemes, giving legal force to energy-saving trajectories.<\/p>\n<p><strong>Long-Term Decarbonization (2050) \u2013<\/strong> The Law of Georgia on the Energy Efficient Buildings mandates the government to prepare and approve a long-term renovation strategy. This strategy is legally required to deliver an \u201cenergy-efficient and decarbonized\u201d building stock by 2050.<\/p>\n<p><strong>International Alignment \u2013<\/strong> Georgia\u2019s economy-wide greenhouse gas reduction commitments are set out in its Nationally Determined Contributions (NDCs).<\/p>\n<p>While these bind Georgia under international law, they are implemented domestically through specific statutes, government decrees, and regulator decisions.<\/p>\n<p>In summary, while there is no standalone \u201cNet-Zero Act,\u201d the targets are law, embedded across sectoral legislation and long-term strategies that mandate specific domestic measures and reporting obligations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a legal definition of 'renewable energy' in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Georgian legal framework provides a specific definition of energy from renewable sources. In particular, it is defined as energy obtained from the following non-fossil sources:<\/p>\n<p><strong>(1) Meteorological and Geophysical:<\/strong> Wind, solar, aerothermal, geothermal, and hydrothermal energy;<\/p>\n<p><strong>(2) Aquatic:<\/strong> Ocean energy and hydropower;<\/p>\n<p><strong>(3) Bio-organic:<\/strong> Biomass, biogas, and gases obtained from specific waste processes, namely, gas obtained from the decomposition of organic material in landfills and gas generated in wastewater treatment plants.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Who are the key political and regulatory influencers for renewables industry in your jurisdiction? Is there any national regulatory authority and what is its role in the renewable energy market? Who are the key private sector players that are driving the green renewable energy transition in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The renewable energy sector in Georgia is governed by a structured framework of national policy-setters, independent regulators, and specialized market operators. In particular:<\/p>\n<p>National Policy-Setter \u2013 The Ministry of Economy and Sustainable Development is the primary political influencer and line ministry responsible for setting national energy policy;<\/p>\n<p>National Regulatory Authority \u2013 The Georgian National Energy and Water Supply Regulatory Commission (GNERC) serves as the independent regulator. GNERC holds extensive powers over:<\/p>\n<p>(1) Licensing and tariffs (including transmission and distribution);<\/p>\n<p>(2) Establishing market rules and overseeing market opening;<\/p>\n<p>(3) Supervising system operators and ensuring market transparency; and<\/p>\n<p>(4) Consumer protection within the energy market.<\/p>\n<p>The Electricity Market Operator (ESCO) exclusively pursues the Balancing Electricity and Guaranteed Capacity trading and fulfils the seasonal need for import\/export of electricity and inspects the wholesale metering nodes. ESCO is a guaranteed purchaser of electricity produced by newly built power plants.<\/p>\n<p>Moreover, Georgian State Electrosystem (GSE) owns and operates the high-voltage grid infrastructure, providing power transmission and exclusive dispatch services. Operated via the National Dispatch Center, GSE balances electricity supply and demand in real time, manages cross-border interconnections, and operates the Balancing and Ancillary Services Market to ensure grid stability.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the approaches businesses are taking to access renewable energy? Are some solutions easier to implement than others? If there was one emerging example of how businesses are engaging in renewable energy, what would that be? For example, purchasing green power from a supplier, direct corporate PPAs or use of assets like roofs to generate solar or wind?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Businesses in Georgia are increasingly utilizing a legal framework designed to liberalize energy access and encourage decarbonization. The approaches vary in technical complexity and regulatory requirements. As such, the current business approaches are as follows:<\/p>\n<p>(1) Businesses can purchase electricity from suppliers within an opening market model overseen by GNERC. This is governed by the Law on Energy and Water Supply, which facilitates bilateral contracting and utility procurement.<\/p>\n<p>(2) Companies are directly investing in on-site generation, primarily rooftop or on-site solar (PV). This route is supported by general market rules for metering and interconnection at the distribution level, alongside the building-efficiency regime.<\/p>\n<p>(3) The Law on Promotion of Generation and Consumption of Energy from Renewable Sources and 2024 Energy Efficiency laws provide a basis for high-efficiency cogeneration (CHP) and district heating\/cooling solutions, though these are typically more infrastructure-intensive.<\/p>\n<p>(4) Grid-connected projects may participate in competitive auctions or state-supported mechanisms where available, ensuring project bankability through standardized electricity market rules.<\/p>\n<p>The ease of implementation depends heavily on the scale of the project and the specific regulatory \u201ctrack\u201d it follows. On-site solar installations are generally the most straightforward due to established connection codes and the integration of energy-efficiency mandates under the 2024 laws.<\/p>\n<p>As for the corporate PPAs (Power Purchase Agreements), while the legal architecture supports bilateral contracting, there is currently no standardized private template or a statutory guarantee for specific wheeling\/net-billing arrangements. Success in this area relies on navigating specific market rules, licensing requirements, and grid connection codes adopted under Georgian legal framework.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Has the business approach noticeably changed in the last year in its engagement with renewable energy? If it has why is this (e.g. because of ESG, Paris Agreement, price spikes, political or regulatory change)? What are the key developments in renewable energy in your country over the last 12 months?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The business approach in Georgia has shifted toward a more structured engagement with energy efficiency and on-site generation, driven largely by significant legislative developments in 2024.<\/p>\n<p>The major amendments to Georgian legislation have introduced new legal obligations, including mandatory audits, energy performance certifications, and public procurement practices that favour high-efficiency solutions. These laws provide clear drivers for corporate interest in \u201cbehind-the-meter\u201d renewables and demand reduction as a means to counteract high-price environments. Key developments over the last 12 months include:<\/p>\n<p>(1) Continued implementation of electricity-market reforms to strengthen system adequacy and integrate additional renewable capacity; and<\/p>\n<p>(2) Advancing wind and solar sites while improving grid flexibility.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How visible and mature are discussions in business around reducing carbon emissions; and how much support is being given from a political and regulatory perspective to this area (including energy efficiency)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Decarbonization in Georgia has evolved from a Corporate Social Responsibility (CSR) topic into a core operational and financing priority for businesses. This maturity is supported by a robust regulatory framework. In this sense, Georgian laws evidence strong political support through national targets and long-term planning to achieve a decarbonized building stock by 2050.<\/p>\n<p>Moreover, the support is provided through energy-market frameworks that enable grid access for renewable projects and GNERC-designed tariffs that reflect and enable cost-effective efficiency measure. The legal environment now actively facilitates the ESCO market and encourages industrial efficiency through mandatory reporting and obligation schemes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are rights to explore\/set up, interconnect or transfer renewable energy projects, such as solar or wind farms, granted? How do these differ based on the source of energy, i.e. solar, wind (on and offshore), nuclear, carbon capture, hydrogen, CHP, hydropower, geothermal; biomass; battery energy storage systems (BESS) and biomethane?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The rights are granted through a multi-step process. There are two principal ways to initiate a solar or other renewable energy project before the Ministry of Economy and Sustainable Development (the Ministry). First, the developer may submit an initiative proposal under the Law on Public and Private Partnership (the PPP Law), provided the project meets PPP criteria. Alternatively, for non-PPP projects, the developer may submit a proposal to the Ministry pursuant to Ordinance 515 of the Government of Georgia. In addition, the developer may obtain a Contract for Difference (CfD) through capacity auctions or a direct selection procedure conducted under Ordinance 556 of the Government of Georgia. The general description of the procedures is as follows:<\/p>\n<p><strong>(1) Development Requirements \u2013<\/strong> Include land rights, zoning approvals, and an Environmental Impact Assessment (EIA) under the Environmental Assessment Code. For energy projects with an installed capacity of 2 MW or more from renewable sources, the developer must apply to the Ministry of Environmental Protection and Agriculture of Georgia (MEPA) for a screening decision on whether the project is subject to a full EIA.<\/p>\n<p><strong>(2) Interconnection \u2013<\/strong> The solar power plant must be connected to the power transmission grid, which is operated by JSC Georgian State Electrosystem (GSE). Projects must submit a grid connection application to GSE, which reviews the application within 15 business days and issues draft technical requirements for connection. The developer then concludes a grid connection agreement with GSE.<\/p>\n<p><strong>(3) Licensing \u2013<\/strong> Generation of electricity requires a license issued by GNERC, unless the facility falls within specified exemptions (e.g., small power plants with capacity not exceeding 15 MW, micro-generating plants not exceeding 100 kW, or generation for own consumption not connected to the grid). The license is issued for an indefinite period and may be amended or annulled by GNERC.<\/p>\n<p>Moreover, the differences based on the source of energy are as follows:<\/p>\n<p><strong>(1) Hydropower:<\/strong> Requires specific water use rights and reservoir management.<\/p>\n<p><strong>(2) Wind\/Solar:<\/strong> Focuses on avian\/landscape considerations and land use\/co-location respectively.<\/p>\n<p><strong>(3) On-site\/Building-integrated:<\/strong> Governed by the 2024 Building Energy Efficiency Law, which sets performance and certification frameworks for decentralized supply.<\/p>\n<p><strong>(4) BESS:<\/strong> Focuses on siting, safety, and grid-service specifications.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the government directly involved with the renewables industry (auctions etc)? Are there government-owned renewables companies or are there plans for one?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Government of Georgia maintains direct and substantial involvement in the renewable energy industry, acting as both a market regulator and an active participant. Under the Law on Promotion of Generation and Consumption of Energy from Renewable Sources, the state leverages government-level cooperation mechanisms, such as statistical transfers and joint projects within the Energy Community framework, empowering the Ministry of Economy and Sustainable Development of Georgia to adopt specific methodologies and implementing acts to meet national targets. To bring new renewable capacity online, the government utilizes competitive procurement mechanisms and structured capacity auctions conducted pursuant to Ordinance 556 of the Government of Georgia. On 10 February 2023, the Ministry announced its first CfD auction for a capacity of 300 MW, which concluded successfully, resulting in the selection of 26 winning projects: 14 hydropower projects (149.3 MW), 10 solar projects (77 MW), and 2 wind projects (70.1 MW).<\/p>\n<p>Beyond procurement, the structure of the market features a hybrid model of state and private ownership. State-owned enterprises directly own and operate the country\u2019s critical network infrastructure, specifically the transmission grid, as well as several legacy generation assets. While the Georgian legal framework outlines the broader organization of the market and establishes regulatory approval frameworks, the provided statutes do not mandate or create a single, dedicated state-owned \u201crenewables company.\u201d Instead, the generation market remains an open, competitive mix where private developers operate alongside state-backed infrastructure within the guidelines set by GNERC and government decrees.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please provide a brief overview of key legislation and regulation in the renewable energy sector, including any anticipated legislative proposals.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The sector is underpinned by four core pillars:<\/p>\n<p>(1) Law on Energy and Water Supply, which establishes the overarching market structure, defines unbundling requirements, protects consumer rights, and outlines the licensing and tariff-setting powers of GNERC;<\/p>\n<p>(2) Law on Promotion of Generation and Consumption of Energy from Renewable Sources, which sets the national renewable targets through 2030, defines compliant renewable sources, establishes calculation methodologies, and outlines cross-border cooperation mechanisms;<\/p>\n<p>(3) Energy Efficiency Law; and<\/p>\n<p>(4) Building Energy Efficiency Law, which together with the Energy Efficiency Law, enforces the national energy-efficiency framework, mandate energy audits, recognize ESCO structures, and outline the 2050 building decarbonization strategy.<\/p>\n<p>Currently, there is no official public information available, which would provide information regarding anticipated legislative proposals in the field of renewable energy.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any government incentive schemes promoting renewable energy (direct or indirect)? For example, are there any special tax deductions or subsidies (including Contracts for Difference) offered? Equally, are there any disincentives?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Georgia\u2019s approach to incentivizing renewable energy relies on a strategic policy toolkit rather than blanket fiscal subsidies. The primary mechanism for promoting utility-scale deployment is the Contract for Difference (CfD) support scheme, established under Ordinance 556 of the Government of Georgia. Under the CfD, the developer enters into an agreement with JSC Electricity System Commercial Operator (ESCO). ESCO reimburses the developer the difference between the tariff proposed in the capacity auction and the price established in the day-ahead market if the proposed tariff is lower; conversely, if the day-ahead market price is higher, the developer must compensate ESCO for the difference. The support period for solar energy power plants is 12 months per year, and the support scheme covers a total period of 15 years. After five years from the start of operations, the developer has the option to terminate the CfD by providing a written notice at least six months in advance. In addition, indirect support is provided through market and grid rules designed to facilitate the smooth integration and priority settlement of variable renewable generation. For smaller, distributed energy systems, the statutory framework creates enabling provisions for on-site deployment, allowing commercial and residential entities to optimize their local generation.<\/p>\n<p>On the demand side, the 2024 energy efficiency legislation introduces indirect incentives by creating a structured regulatory space for Energy Service Companies (ESCOs) and performance-based contracts. It also mandates that public procurement practices tilt heavily toward high-efficiency goods and services, explicitly encouraging the integration of decentralized renewable systems, such as solar thermal units for water heating, into public and commercial buildings.<\/p>\n<p>Conversely, explicit fiscal incentives\u2014such as specific corporate tax deductions, targeted VAT exemptions, or customs relief for imported renewable hardware\u2014are not established in tax or budget legislation of Georgia.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How does the structure of the natural gas industry in your country impact the price of electricity? Are there any plans to de-link the price of renewable electricity from gas prices? Are there plans in your jurisdiction to keep open coal plants originally scheduled for retirement?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The structural relationship between the natural gas and electricity industries in Georgia is defined by the critical role thermal generation plays in grid stability. Because Georgia\u2019s power system is historically hydro-dominated, natural gas-fired thermal plants act as the vital source of grid flexibility, ramping up to provide essential balancing power and setting the marginal cost of electricity during periods when hydrology is low or variable renewables are insufficient. While GNERC holds full competence over tariff-setting and market rules for both the electricity and natural gas sectors, the laws of Georgia do not prescribe an automatic indexation where electricity prices are tied directly to gas. Instead, pricing is determined dynamically through established market rules and approved tariff methodologies.<\/p>\n<p>Furthermore, while policy discussions within European and neighboring markets regarding the limitation of infra-marginal rents or the formal \u201cde-linking\u201d of renewable electricity from natural gas prices have influenced local regional debates, no such mechanism is currently codified in Georgia. Any implementation of a de-linking policy would require the passage of explicit new legislation or formal regulatory action by GNERC. Regarding solid fuels, the state\u2019s long-term legislative and planning instruments are entirely silent on coal-retirement policies, choosing instead to focus resources on the expansion of hydropower, wind, solar, and advanced system flexibility.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the significant barriers that impede both the renewables industry and businesses' access to renewable energy? For example, permitting, grid delays, credit worthiness of counterparties, restrictions on foreign investment, regulatory constraints on acquisitions; disputes\/challenges?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Georgian legislative framework reveals several material, structural barriers that can impede the deployment of renewable energy and complicate corporate access. A primary hurdle is the industry\u2019s heavy dependency on a complex web of secondary legislation, grid codes, and methodologies that are still being adopted or updated. Because the critical path for project delivery\u2014including licensing and grid-connection timelines\u2014is managed via procedures set by GNERC, administrative delays frequently occur while these detailed regulatory instruments are being finalized or adjusted to handle new capacity queues.<\/p>\n<p>For utility-scale projects, developers face prolonged timelines due to multi-step environmental, construction, and land-access permitting procedures that must be navigated across multiple government agencies before site work can begin. The construction permit process for energy power stations with a capacity exceeding 50 kW involves three distinct phases before the Technical and Construction Supervision Agency of the Ministry. Furthermore, grid constraints and the technical necessity for extensive connection studies and localized grid reinforcements often slow down the speed at which new projects can be integrated. A significant barrier for foreign investors relates to agricultural land ownership: the Law on Ownership of Agricultural Land does not allow foreign-registered legal entities to own agricultural land in Georgia, and legal entities with dominant foreign ownership may obtain agricultural land only through the Government\u2019s decision in line with an investment plan, or by changing the status of the land from agricultural to non-agricultural. From a financial perspective, project bankability remains a challenge; contract frameworks frequently suffer from a lack of standardized terms regarding counterparty credit, curtailment rules, and the equitable allocation of balancing risks. For businesses attempting to establish onsite or building-integrated solutions, compliance with the rigorous new performance standards and energy certification systems introduced in 2024 adds a layer of near-term administrative complexity, even though it ultimately provides long-term quality assurance and project bankability.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the key contracts you typically expect to see in a new-build renewable energy project?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A new-build renewable energy project in Georgia requires a highly interconnected suite of commercial and legal agreements, fully aligned with the private law, secured-transactions law, and energy market rules of the jurisdiction. A distinctive feature of the Georgian framework is the requirement for a technical-economic feasibility agreement and an implementation agreement concluded with the Government of Georgia, which set out the conditions that must be met before the project developer can enter into a Contract for Difference (CfD) with JSC Electricity System Commercial Operator (ESCO). The CfD or, alternatively, a Power Purchase Agreement (PPA) or structured offtake arrangement, forms the core of the project\u2019s revenue model. The physical realization of the asset is governed by a comprehensive Engineering, Procurement, and Construction (EPC) contract\u2014or a series of coordinated split contracts\u2014complemented by a long-term Operations and Maintenance (O&amp;M) agreement and specific equipment supply contracts for major components like turbines or solar arrays.<\/p>\n<p>To secure access to the network, the developer must execute a formal Grid Connection or Interconnection Agreement with the system operator, which includes compliance with national grid codes and provisions for ancillary services where applicable. The real estate and administrative foundation of the project relies on robust land rights agreements, leaseholds, and valid municipal construction permits. To secure financing, the entire package is bound together by limited-recourse financing documents and a comprehensive security package, including a Direct Agreement that grants lenders explicit step-in rights in the event of a developer default. Finally, for projects tied to district energy, thermal generation, or corporate efficiency retrofits, the suite will often feature specialized heat offtake agreements or Energy Performance Contracts (EPCs), which are now formally recognized under the 2024 energy efficiency framework.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions on the import or export of renewable energy, local content obligations or domestic supply obligations? What are the impacts (either actual or expected) in your jurisdiction of the implementation of the Net Zero Industry Act (EU) Regulation 2024\/1735 or the \u201cforeign entity of concern\u201d regulations in the U.S.?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Cross-border trade of electricity in Georgia is governed entirely by the technical and commercial mechanics established under the Law on Energy and Water Supply. The statutory framework regulates interconnection capacity allocations, transmission codes, and cross-border interconnection agreements, specifically focusing on coordinating trade with neighbouring systems and Energy Community parties.<\/p>\n<p>Regarding protectionist measures or supply mandates, the primary energy statutes currently do not impose any economy-wide \u201clocal content\u201d obligations or domestic supply mandates specific to renewable energy projects. Furthermore, Georgian laws contain no direct references to or adoptions of external foreign statutes, such as the European Union\u2019s Net Zero Industry Act (NZIA) or the United States\u2019 \u201cforeign entity of concern\u201d regulations. Thus, any impacts resulting from these international regulatory regimes would influence Georgian projects indirectly\u2014primarily through global supply-chain compliance requirements, manufacturing sustainability standards, and international financing eligibility criteria\u2014rather than through the direct application of domestic Georgian law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How has deployment of renewables been impacted in the last year by geopolitical uncertainties and other non-country specific factors: For example, the conflict in the Middle East, financing costs, changing tariff regimes, supply chain or taxes or subsidies (e.g. the impact of the One, Big, Beautiful Bill on the tax credits and other incentives created by the Inflation Reduction Act in the U.S.)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>While the core energy statutes do not actively track fluctuating macroeconomic or geopolitical market conditions, these non-country-specific factors exert substantial commercial and financial pressure on the deployment of renewables in Georgia. Global interest rate cycles and tight supply-chain conditions have universally driven up capital costs and increased investor risk premiums for large infrastructure projects worldwide. Regionally, geopolitical instability directly influences the import prices of fossil fuels, highlighting the volatility of relying on thermal balancing and changing the underlying economic assumptions of the domestic energy mix.<\/p>\n<p>The primary policy and legislative response to these macro-financial headwinds has been a sharper focus on refining competitive procurement processes, optimizing risk allocation within PPAs, and facilitating targeted grid investments to unlock high-potential sites. Additionally, the rapid domestic integration of the 2024 energy efficiency and building decarbonization laws acts as a structural defense mechanism. By mandating deep demand reduction and incentivizing behind-the-meter, onsite generation, the legal framework seeks to insulate commercial consumers from international fuel price spikes and high capital costs through reduced grid reliance.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Could you provide a brief overview of the major projects that are currently happening in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In 2023, the Ministry announced its first CfD auction for a capacity of 300 MW, which concluded successfully, resulting in the selection of 26 winning projects: 14 hydropower projects (149.3 MW), 10 solar projects (77 MW), and 2 wind projects (70.1 MW).<\/p>\n<p>Beyond the CfD scheme, Georgia\u2019s renewable energy roadmap includes several strategic, large-scale hydropower \u201cmegaprojects\u201d:<\/p>\n<p><strong>(1) Nenskra HPP (280 MW):<\/strong> Located in the Svaneti region, this build-operate-transfer (BOT) project is being developed by JSC Nenskra Hydro (a joint venture between South Korea\u2019s K-Water and the state-owned Partnership Fund). The project has faced prolonged delays following environmental and social compliance disputes with international financial institutions, but remains a priority for seasonal grid stabilization;<\/p>\n<p><strong>(2) Khudoni HPP (702 MW):<\/strong> Envisaged as Georgia\u2019s second-largest hydropower facility, this project on the Enguri River is currently in a state-led preparatory phase.<\/p>\n<p><strong>(3) Namakhvani HPP Cascade (435 MW):<\/strong> Planned as a two-plant cascade (Tvishi and Namakhvani) on the Rioni River, construction was halted following intense local environmental protests and the subsequent exit of the primary investor. The project is currently suspended amid international arbitration proceedings, though the government has expressed long-term intent to mobilize domestic or alternative external resources to reactivate its development due to its strategic importance.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are the business models in the renewable energy sector in your jurisdiction adapting to the increasingly significant pace of deployment of BESS? What percentage of deals are standalone, co-located or hybrid? How is the implementation of these business models impacting financing structures?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Battery Energy Storage Systems (BESS) are rapidly entering the Georgian energy landscape as critical tools for maintaining grid stability, providing ramp support, handling peak shaving, managing network congestion, and firming variable renewable generation. Under the current statutory architecture, storage is not treated as a standalone asset class with distinct legislative subsidies; instead, it is accommodated within the broader market rules and grid codes adopted by GNERC and the system operators. Consequently, early-stage business models are heavily weighted toward co-located projects\u2014where storage is physically integrated into wind or solar plants to mitigate balancing risks\u2014or placed at strategic nodes on the transmission grid to provide dedicated ancillary services.<\/p>\n<p>Financing structures for BESS assets must adapt to the market rules approved by GNERC. Because the provided statutes do not outline fixed percentages of standalone versus hybrid deals, the bankability of a BESS investment depends entirely on \u201crevenue stacking.\u201d<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is required in your jurisdiction to facilitate confidence in new development and financing in newer areas like offshore wind or hydrogen?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>To build solid investor and financing confidence in newer technological segments such as offshore wind or green hydrogen, Georgia\u2019s statutory architecture would require targeted expansions and detailed secondary regulations, as these areas are not fully addressed in the existing framework laws, including the Law on Energy and Water Supply and the Law on Promotion of Generation and Consumption of Energy from Renewable Sources. First, the state would need to establish clear statutory definitions for \u201crenewable hydrogen,\u201d alongside enforceable guarantees-of-origin and specialized safety and environmental standards for production and transport. Second, a dedicated, highly coordinated permitting framework is required to manage novel infrastructure, necessitating clear spatial planning laws that cross-reference maritime, environmental, municipal, and land-use authorities. Finally, to mitigate the high capital risks of early-market entry, the jurisdiction would need to introduce state-backed pilot-project support mechanisms and standardized, long-tenor offtake models that allocate technology-specific balancing and curtailment risks in a manner acceptable to international financial institutions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are renewables projects commonly financed in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The framework energy legislation of Georgia remains entirely neutral toward specific financing mechanisms, choosing instead to establish the baseline legal protections\u2014such as licensed generation rights, freedom of contract, and clear merchant or supply arrangements under GNERC market rules\u2014that allow varied financing structures to operate. For large, utility-scale assets, limited-recourse or non-recourse project finance remains the standard model. These structures typically blend senior debt, often provided by international financial institutions (IFIs) operating alongside local commercial banks, with equity contributions from project sponsors. The bankability of these large-scale deals rests on long-term offtake certainty, clear contractual rules for curtailment and balancing risk allocation, and robust, enforceable security packages under domestic contract and secured-transactions law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the rising demand for data centres impacting the grid and electricity prices for consumers?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Georgian statutory framework does not contain localized market-impact studies or specific data center tariff rates, treating all large, intensive power consumers under a unified regulatory approach. New electricity loads require substantial transmission and distribution infrastructure upgrades, necessitating long-lead connection planning and rigorous system adequacy reviews. Georgian authorities and the TSO evaluate these large-scale connection requests strictly within the state\u2019s established grid-planning and network connection frameworks, utilizing long-term transmission development plans mandated by the Law on Energy and Water Supply. Any eventual impact these data-driven loads may have on consumer electricity prices is mediated entirely through the independent tariff-setting methodologies established by GNERC, which are designed to ensure that network expansion costs are equitably distributed and do not place an unfair financial burden on regulated consumer tariffs.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">4799<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/142450","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=142450"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}