---
title: "Hydroelectric Development"
url: "https://legal.ge/en/service/environmental-and-energy-law-en/hydroelectric-development-en"
field: "Environmental & Energy Law"
description: "Hydroelectric development: state policy, generation conditions and renewable energy promotion in Georgia. Legal.ge."
reviewed: "2026-02-13"
updated: "2026-10-15"
publisher: "legal.ge"
---

# Hydroelectric Development

> Source: legal.ge, https://legal.ge/en/service/environmental-and-energy-law-en/hydroelectric-development-en

## 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.

The full text is available on legal.ge after signing in: https://legal.ge/en/service/environmental-and-energy-law-en/hydroelectric-development-en

### How is state energy policy formulated?

The ministry elaborates the policy for at least 10 years in cooperation with the government and the commission; the approved document is published by Parliament and then implemented.

### What requirements apply to a hydro plant under generation conditions?

Construction, maintenance, operation and network connection must conform to technical standards and norms, including requirements on the environment, public safety and property protection.

### Does hydro generation require a licence?

Yes, with exceptions: own-consumption generation not connected to the network and small or micro-capacity plants do not require a licence.

### How does the law encourage hydro energy?

Generation from renewable sources may be encouraged through defined support mechanisms up to the Energy Community level; every such measure must conform to competition and state-aid rules.

### Why does reserve capacity matter?

Supply-security measures require sufficient reserve transmission and generation capacity for stable system operation — especially critical given the seasonality of hydro plants.