Hydroelectric Development is the backbone of Georgia's energy sector. Harnessing the country's hydro potential is of strategic importance, yet building new HPPs involves complex challenges: land acquisition, environmental impact, social protest, and intricate engineering-legal procedures. HPP development is a lengthy process encompassing the pre-feasibility stage, construction phase, and commissioning. Each stage requires specific legal assurance, from signing memorandums with the state to engaging with local communities and land expropriation.
Energy law experts represented on the Legal.ge platform offer full legal accompaniment at all phases of hydropower project development. Services include:
- Development Agreements: Drafting and negotiating agreements with the government (Implementation Agreement / MOU), defining the parties' obligations and timelines.
- Land Management: Purchasing or leasing land plots in the project area, establishing easements, and, if necessary, managing the expropriation process in full compliance with the law.
- Water Rights: Obtaining water intake permits and resolving legal issues related to determining environmental flow.
- Environmental and Social Audit (ESIA): Legal oversight of the Environmental Impact Assessment process, organizing public hearings, and obtaining permits.
- Construction Contracts (FIDIC): Concluding international standard construction contracts (EPC) with contractors and managing disputes arising during construction.
Hydroelectric development services are necessary in the following scenarios:
- A developer starts a 50 MW HPP project and needs an agreement with the state ensuring guaranteed purchase (PPA) or a Contract for Difference (CFD).
- HPP construction halted due to local protests. A lawyer engages in mediation, drafts social responsibility agreements, and ensures the protection of legal rights.
- The project requires the use of forestry fund lands. De-listing from forest status or obtaining special use rights involves complex procedures.
- An investor needs a loan from a development bank (EBRD, ADB). The bank requires a full legal audit of the project and justification of adherence to environmental standards.
The field is regulated by the Law on Public-Private Partnerships, the Law on Electricity and Natural Gas, and the Government Decree "On Approval of the Rule for Expression of Interest for Technical-Economic Study, Construction, Ownership, and Operation of Power Plants." Environmental legislation and land expropriation rules are also paramount.
Collaborating with a Legal.ge specialist reduces the risk of project failure. Hydropower is a long-term and expensive investment where legal errors are costly. Our lawyers will help you successfully implement the project from idea to the first kilowatt.
Find hydropower development experts on Legal.ge. Our platform gives you access to lawyers with unique experience in legally securing HPP construction in Georgia.
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