The legal frame of hydroelectric development
The hydroelectric plant is the backbone of Georgia's energy system, and its development takes place within the full regime established by the Law on Energy: from state energy policy, through the conditions of generation, to promotion mechanisms. This page explains which norms concern hydroelectric projects, how state policy is formulated and what the law requires of generation objects.
State energy policy
The ministry, in cooperation with the government, the commission and other parties, elaborates the state energy policy for a period of at least 10 years, and after approval and publication by the Parliament ensures its implementation. This document is the frame in which the priorities of hydroelectric development must also be reflected.
The policy must provide for a strategy for the electricity sector for short-, medium- and long-term periods — the strategic development of the generation, transmission, including cross-border transmission, and distribution of electricity; measures serving the safe and reliable supply of electricity to consumers; measures of physical and financial accessibility and the phased overcoming of energy poverty; the planning of long-term balancing of supply and demand; mechanisms for the diversification of primary energy sources and imports; the increase of export opportunities; and the encouragement of investment in infrastructure, including innovative, environmentally safe and smart technologies.
From the hydroelectric perspective two elements of the policy are especially significant: measures serving the use of renewable energy sources for the generation and consumption of electricity from such sources, as well as any incentive measure or support mechanism; and measures aimed at promoting the combined generation of electricity and heat. The policy also includes issues of increasing the efficiency of energy activity and reducing negative impact on the environment.
Conditions of electricity generation
The construction, maintenance, operation and connection to the transmission and/or distribution network of electricity generation objects and associated devices must conform to the technical standards, norms and other mandatory conditions established by Georgian legislation and by the rules of the transmission and distribution networks — including requirements related to the environment, public safety and the protection of property. For a hydroelectric plant this means that technical parameters and environmental requirements are summed up in a single package of obligations.
Generation itself, save for the exceptions provided by law, is subject to mandatory licensing according to the procedure established by the Law on Licenses and Permits, the Law on Energy and the licensing rules approved by the commission. Among the exceptions are generation for one's own consumption not connected to the network, and small or micro-capacity power plants.