Energy storage projects in Georgian law
An investor wishing to store energy must first know one thing: no separate statute on electricity storage exists in Georgian legislation. Of the regulatory framework in force, the only sphere of storage regulated in detail is natural gas storage, which is governed by the law on energy. So if your project concerns a gas storage facility, the norms described below apply directly; electricity battery storage projects remain outside this framework, and no special licensing or permitting regime exists for them — this must be said plainly and taken into account in planning.
In planning, note also that relationships connected with storage are divided into two levels: on the one hand, the operator's activity — the operation and management of storage objects; on the other, the users' relationship with the operator — obtaining access, participating in capacity allocation and demanding compliance with the contractual conditions. The law governs both levels, and the investor's position depends precisely on which side it occupies in this relationship.
The natural gas storage system operator
Natural gas storage activity is carried out by the natural gas storage system operator, which conducts this activity under the procedure established by the law on energy and by other legislative and sub-legislative legal acts of Georgia. The status of the operator is the precondition for such activity: the operation and management of a storage object fall within its competence, and its functions are exercised under rules defined by law.
Access to the storage object and pipeline
For organizing access to the storage object and the pipeline for the purpose of gas storage, a negotiated or regulated access procedure is used, where this is technically or economically necessary in order to ensure effective access to the system and the availability of auxiliary services for supplying consumers with gas. The commission defines and publishes the criteria on the basis of which it is decided which procedure applies; the procedures must be applied in an objective, transparent and non-discriminatory manner. The storage system operator publishes information about which storage object or its part is offered under the different access procedures, while the transmission system operator publishes which part of the system used for gas storage is offered under the different access procedures.
In the case of negotiated access, the commission takes all necessary measures so that gas enterprises and final consumers within the territory of the interconnected system or beyond it have the possibility to agree on access to the storage objects and the pipeline. The parties are obliged to conduct the negotiations related to access and to auxiliary services in good faith — this obligation is imposed directly by law, and its breach becomes the subject of dispute.