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Power Plant Licensing

Do all solar power plants need a license?

No, most solar power plants (especially small and medium ones) are deregulated and do not require a generation license, but they must still register with the market operator.

What is the difference between a permit and a license?

A construction permit is issued by the municipality for building the structure, while a generation license is issued by GNERC for the commercial activity of producing electricity.

Can I sell electricity without a license?

If your plant falls under the deregulated category (e.g., small HPP), yes, you can sell electricity without a license, but you must comply with market rules and registration requirements.

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Power Plant Licensing is a decisive stage for any energy project, determining the right to commission the facility and commence commercial activities. In Georgia, electricity generation is a licensed activity regulated by GNERC (Georgian National Energy and Water Supply Regulatory Commission). However, not all plants require a license: small-capacity plants benefit from a deregulated regime, simplifying the process but still requiring certain registration. Obtaining a license is a multi-step process involving technical, financial, and environmental assessments. The investor must prove they possess sufficient resources and competence for the safe operation of the plant.

Energy lawyers represented on the Legal.ge platform offer full legal accompaniment in the licensing process. Services include:

  • Determining licensing requirements: Providing a legal opinion based on project capacity and type on whether the plant needs a generation license or is subject only to registration.
  • Preparing the license application: Compiling a complete package of documentation for GNERC, including the technical passport, environmental decision, and preparation of financial guarantees.
  • Audit of construction permits: Verifying that all construction and environmental permits (EIA) are in order, as this is a prerequisite for receiving an operational license.
  • Tariff application support: If the plant is subject to tariff regulation (e.g., guaranteed purchase), providing legal justification for tariff calculation.
  • Commissioning act formalization: Liaising with technical supervision bodies to obtain the act of commissioning for the plant.

Power plant licensing services are necessary in the following scenarios:

  • An investor has completed the construction of a 20 MW hydropower plant and needs a generation license to start selling electricity on the market.
  • A solar plant owner wants to increase the plant's capacity, which might push it into a licensed category. A lawyer assesses regulatory risks.
  • An existing licensee company undergoes reorganization (e.g., merger) and needs to transfer the license to a new legal entity.
  • A foreign company acquired a wind farm project and wants to verify the validity of the existing preliminary license during the construction phase.

Licensing is regulated by the Law of Georgia on Licenses and Permits and the Law of Georgia on Energy and Water Supply. Detailed procedures are outlined in GNERC's resolution "On Approval of Rules for Control and Licensing of Activities in Electricity and Natural Gas Sectors." Deregulation of small-capacity plants (HPPs up to 15 MW and other renewable sources) is defined by the Minister of Energy's order and GNERC decisions.

Collaborating with a Legal.ge specialist reduces bureaucratic waiting times and ensures the timely launch of the plant. Operating without a license (when mandatory) constitutes illegal entrepreneurial activity and leads to criminal liability or heavy fines. Our lawyers will help you avoid these risks.

Find licensing specialists on Legal.ge. Our platform gives you access to energy lawyers who have successfully guided dozens of plants through the licensing process. Ensure the legality and success of your energy business.

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