Grid Connection Agreements

What is the difference between standard and non-standard connection?

Standard connection involves fixed fees and deadlines for predefined capacity packages (mostly low/medium voltage). Non-standard connection requires specific engineering studies and infrastructure upgrades, with costs calculated individually.

Who pays for the grid reinforcement?

Generally, the grid operator is responsible for developing the network, but if a connection requires specific deep connection assets solely for the user, the user may bear the cost.

Can GSE refuse a connection?

Refusal is allowed only on technical grounds (lack of capacity) that cannot be remedied economically. Such refusals must be justified and can be appealed to GNERC.

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Grid Connection Agreements are a critically important legal instrument for any new energy project in Georgia, whether it be a hydropower plant, solar station, or large industrial consumer. Connecting to the transmission grid of the Georgian State Electrosystem (GSE) or the networks of distribution companies (Telasi, Energo-Pro) is regulated by strict technical and legal norms. The connection agreement defines the rights and obligations of the parties, connection fees, timelines, and technical conditions. Often, this process is long and complex, involving negotiations on grid reinforcement works, determination of the connection point, and financial guarantees.

Energy lawyers represented on the Legal.ge platform offer qualified assistance in the grid connection process. Their services include:

  • Legal analysis of technical conditions: Studying the technical conditions issued by the grid operator and identifying risks (e.g., unreasonable deadlines or costs).
  • Negotiation of connection agreements: Reviewing the draft agreement with GSE or the distribution company to protect the investor's interests, especially regarding liability for breach of connection deadlines.
  • Verification of connection fee calculation: Legally checking the correctness of the fee charged according to the methodology established by GNERC.
  • Arrangement of land easements: Legal assurance of obtaining easements or building rights on land plots necessary for the construction of transmission lines.
  • Dispute resolution: Protecting interests at GNERC or in court if the grid operator groundlessly delays connection or refuses connection citing lack of grid capacity.

Work on grid connection agreements is necessary in the following scenarios:

  • An investor is building a 10 MW solar power plant and needs a guarantee that the grid will be ready to receive energy upon completion of construction. Delays cause financial loss.
  • A large factory (e.g., metallurgical) requests an increase in capacity and connection to high voltage. The grid operator requests the consumer to fund the construction of a new substation. A lawyer investigates the legality of this demand.
  • The grid operator fails to meet the deadlines for grid reinforcement stipulated in the contract, preventing the power plant from starting operations. It is necessary to impose penalties or renegotiate deadlines.
  • A hydropower plant project changes (installed capacity changes), requiring modification of existing technical conditions and the connection agreement.

Legislative regulations in this field are based on the Law of Georgia on Energy and Water Supply. Detailed connection rules are outlined in the "Network Rules" (Transmission and Distribution), approved by GNERC. Also important is the GNERC resolution "On Fees for Connection to the Electricity Distribution Network." These normative acts establish standard conditions, although for complex and non-standard connections (especially at high voltage), contract terms are subject to individual negotiation.

Collaboration with a Legal.ge specialist guarantees that your energy project will not be stalled at the "last mile." Grid connection is often the riskiest stage of a project. A lawyer helps you manage these risks, ensures communication with monopolist operators, and protects your investment from unforeseen costs.

Find energy contract experts on Legal.ge. Our platform connects you with lawyers who understand the technical and legal aspects of the electrical power system. Legal.ge helps you ensure uninterrupted energy transportation.

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