The smart grid in Georgian law
In international practice the smart grid is often associated with a dedicated strategic programme. Georgia has no separate smart grid act — this must be said plainly. What exists is three interconnected regimes embedded in the Law on Energy: the planning of network development (the plans of the transmission and distribution networks), the principle of promoting smart technologies, and the encouragement, within supply-security measures, of new technologies — demand management, smart metering and distributed generation. This page explains how these three links work together.
The principled foundation
Among the general principles of regulation of energy activity, the law directly provides for the promotion of the use of smart and environmentally safe technologies in the operation of the system. This means that for the regulator smart technologies are not an end but a means — an instrument for increasing efficiency and reducing negative impact on the environment. The same principles include increasing the efficiency of energy activity and sustainable development, the effective use of interconnector capacities and diversification on energy markets.
The ten-year transmission network plan
The transmission system operator annually elaborates and updates the ten-year transmission network development plan for the next 10 calendar years, based on existing and forecast supply and demand indicators. The plan contains information on existing and forecast demand and supply, on domestic forecast generation and cross-border flows, on the main infrastructure to be built or improved over the next 10 years, on decided investments and those to be implemented over the next 3 years, on specific deadlines, and — importantly — on the integration into the network of new generation objects, including renewable sources.
The procedure is also defined: after consultations with stakeholders, the draft plan is submitted to the ministry and the commission no later than 1 October of the relevant year; the commission examines the draft and submits its remarks to the ministry within 2 months of receipt; the ministry, with the government's consent, ensures approval of the plan no later than the end of the relevant year. From the smart grid perspective, this plan is precisely the document where investments in digital and intelligent infrastructure must be reflected.
Investment discipline is also embedded in the law: if the transmission system operator fails to implement an investment planned by the ten-year plan for the next three years (save where caused by independent, insurmountable reasons), the commission, in agreement with the government where necessary, adopts one of the following measures: it demands the implementation of the investment, holds an open tender to select an interested investor, or instructs the operator to increase its capital with the involvement of investors. Such investors may not, however, be companies engaged in generation, supply or trading — the measure protects the independence of the transmission sphere.
The distribution network development and investment plan
The distribution system operator elaborates a development and investment plan to ensure safe, reliable, continuous and quality supply through the distribution network. In elaborating the plan, the operator takes into account issues related to environmental protection, energy efficiency, the promotion of renewable energy development and demand management.
The content of the plan is exactly where smart technologies are touched: it includes possible scenarios for the development of smart meters together with generation, including generation from renewable sources, and measures to improve energy efficiency; quality target indicators, including the duration of interruptions, and possible investments in quality control and data-exchange devices; and information on studies conducted on the use of the smart grid and, where necessary, smart accounting systems, and their results. These norms oblige the state to make smart metering part of planning — and these documents show where and how the smart grid actually grows.
Supply-security measures and new technologies
Within the framework of electricity supply-security measures, the ministry, in cooperation with the commission and other competent state bodies, also targets demand-management effects: it encourages the introduction of energy efficiency and new technologies — demand management, renewable energy and smart metering technologies, and distributed generation of electricity — so as to make demand for electricity manageable in real time; energy-saving measures are promoted; and the reduction of the long-term effect of the growth of electricity-related demand is noted.
Market infrastructure measures also matter: unrestricted and substantiated investments in the transmission and/or distribution networks to satisfy forecast demand, quality standards in accordance with the technical rules, and the removal of administrative barriers impeding investments in electrical infrastructure for admitting new generation capacity.
Frequently Asked Questions
Is there a separate smart grid law?
No. There is no separate act; the regime consists of network-development planning plus smart-technology promotion norms.
What are the deadlines of the transmission plan?
The operator elaborates the ten-year plan annually; the draft goes to the ministry and commission by 1 October of the relevant year, the commission submits remarks within 2 months of receipt, and approval follows no later than the end of the year.
Where is smart meter development reflected?
In the distribution network development and investment plan, drawn up for a five-year period and renewed annually; it covers possible smart meter development scenarios, quality target indicators and the results of smart grid studies.
What happens if the operator does not implement a planned investment?
The commission may demand implementation, hold an open tender to select an investor, or instruct a capital increase with the involvement of investors.
How We Help on Legal.ge
Smart grid development in Georgia happens through planning and principled promotion rather than a separate act. On Legal.ge you can consult a lawyer on reading the network operators' plans, assessing investment projects and dealing with regulatory requirements. Submit a request on the site and get qualified assistance.