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  4. Energy Distribution
  5. Energy Distribution Licensing

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Energy Distribution

Energy Distribution Licensing

Which activities require a commission license in the energy sector?

In electricity: generation, transmission, distribution and market operation; in natural gas: transmission, distribution, storage system operation, operation of LNG devices and market operation; also water supply. Carrying out these activities without a valid license is prohibited.

Are there exceptions from generation licensing?

Yes: no license is needed for generation for own consumption where the object is not connected to the network; generation upon commissioning of the object; small and micro capacity power plants; and the closed distribution system operator by decision of the commission. A notification obligation may still apply in such cases.

How does the distribution system operator status relate to the distribution license?

The operator is authorized through the issuance of the distribution activity license, which is possible only where the unbundling requirements are met. The applicant submits unbundling documentation to the commission.

Can a license be refused, and how is that controlled?

Refusal is possible only on grounds established by law; it must be substantiated and explained, and the applicant has the right of appeal. Every refusal, with its reasons, is notified to the Secretariat of the Energy Community.

6 min·9 Jan 2026

Energy Distribution Licensing — the General Picture

The distribution of electricity and natural gas in Georgia is regulated through mandatory licensing under the Law of Georgia on Electricity and Water Supply. This page explains which activities require a license from the commission, what conditions an applicant must satisfy, how a license is issued, and how the status of distribution system operator connects to the distribution activity license. If your company plans to operate a distribution network, knowing these rules is decisive for preparing the license application correctly.

It is worth noting at the outset that distribution is not the only licensed activity in the energy sector, and when preparing an application you see the whole system of which the distribution license is a part. Without it, operating the network is unlawful, while a correctly prepared application clears the path to a decision — refusal being possible only on grounds established by law.

Updated: 15 Oct 2026