How a renewable energy project works in operator mode
Obtaining the licence is only the first step for a renewable energy project: the operator's daily activity is governed by the norms of the Georgian Law on Electricity and Gas Supply that define the conditions of generation, the rights and obligations of the producer, and the rules of access to the network. Under Article 32, the construction, maintenance, operation and connection of electricity generation objects and related devices must comply with Georgian legislation and with the technical standards, norms and other mandatory conditions established by the transmission and/or distribution network rules — including requirements related to the environment, public safety and the protection of property. Generation itself, apart from the cases provided by paragraph 3 of Article 11 of the law, is subject to mandatory licensing.
Rights of the producer of electricity
Article 33 empowers the producer to generate electricity using the object accepted into operation and the energy source indicated in the licence conditions — in compliance with the respective licence, the technical characteristics established by Georgian legislation and environmental protection requirements. The indication of the renewable source in the licence conditions is particularly significant, because it is precisely that indication which determines the legal regime of the object: a wind, solar or hydro facility operates within the framework fixed for it.
The producer is also entitled to conclude contracts on the purchase and sale of electricity in compliance with the conditions established by the law and the electricity market rules; to conclude contracts on balancing and the provision of ancillary services; to have access to the transmission and/or distribution system in accordance with the conditions established by the law, the network rules and other legislation; and to enjoy other rights provided by Georgian legislation. This means that the operator of a renewable facility chooses the structure of its own sales within the limits of the market rules.
Obligations of the producer
Article 34 sets out the operator's duties. The producer is obliged to: fulfil the requirements and conditions established by the law and the respective licence; have a metering device that makes it possible to account for the electricity supplied to the respective network; satisfy the requirements established by the transmission and distribution network rules; carry out the operational instructions issued by the transmission and/or distribution system operator — including instructions related to dispatching, balancing, emergency conditions in the system and the provision of ancillary services; and fulfil energy efficiency and environmental requirements.
When participating in the electricity market, the producer must comply with the rules established by regulatory acts on competition, including the prohibition of unjustified restriction of capacity and unjustified reduction of electricity generation. The producer must also maintain the proper operational condition of the generation objects and ensure their continuous operational readiness and safe operation — an obligation subject to supervisory inspection; to transmit to the operators, on request, the data and information necessary for the operation and management of the power system; to ensure the operators' free access to those devices of the generation object which are used for reserve purposes, for the provision of ancillary services and for the transportation of electricity flows; to take into account, in the manner established by the network rules, the operator's recommendations on changing the installations and equipment of the object; and to maintain and improve those installations which are also used for transmission or distribution — this obligation, too, is subject to supervisory inspection.