The legal framework of renewable energy
Renewable energy in Georgia is regulated by the law on energy, which begins with the state energy policy and continues through the tasks of the commission and the promotion of generation. The law defines renewable energy sources as renewable non-fossil sources — wind, solar, geothermal energy, waves, sea tides, hydropower, biomass, gas obtained from waste processing, sewage treatment plant gas and biogas. Accordingly, when planning a renewable project, all fundamental questions — support mechanisms, integration with the network and public service obligations — must be read from this single framework.
In practical terms this framework appears as three levels. The first is strategic — the state energy policy and its national plan, where the goals of renewable energy are fixed. The second is regulatory — the tasks of the commission, the rules and methodologies it establishes. The third is contractual — the support mechanisms defined by legislative and government acts. The success of a renewable project requires simultaneous assessment at all three levels.
State energy policy
The ministry, in cooperation with the government, the commission and other parties, develops the state energy policy for a period of at least 10 years and, after its approval and publication by the Parliament, ensures its implementation. Among other matters, this policy must provide for measures aimed at the use of renewable energy sources for the generation and consumption of electricity from such sources, as well as any encouraging measure or support mechanism; also measures aimed at encouraging the combined generation of electricity and heat, together with measures for safe and reliable supply, physical and financial accessibility, and the gradual overcoming of energy poverty. The policy must include the national integrated energy and climate plan, directed towards the reduction of greenhouse gas emissions, approved as an integral part of the energy policy document or as its annex; the national plan is prepared and submitted to the Secretariat of the Energy Community under the Ministerial Council’s recommendation.
Public service obligations
Article 9 of the law governs public service. Deriving from the general economic interest — for the purpose of ensuring security, continuity, quality and price of supply, environmental protection, energy efficiency, generation of energy from renewable sources and climate protection — an energy enterprise may be charged with a public service obligation. This obligation is imposed by the government after consultation with the competent authorities, the commission and the Secretariat of the Energy Community; it is a temporary measure subject to regular review. Compensation or the granting of any exclusive right must take place in a transparent and non-discriminatory manner, and the benefit granted by the state must not exceed the costs connected with the performance of the obligation. The commission is authorized to set the tariff for performing this obligation.
The framework of public service obligations does not extend to transmission and distribution: these activities are already carried out as a public service by the corresponding system operators. For a generation object the obligation arises only in cases of defined necessity, with consultations and proportionality.