The System of Mandatory Authorization
Permits for a wind farm begin with Article 11 of the Georgian Law on Energy and Water Supply: in accordance with the conditions envisaged by the Law on Licenses and Permits and this law, the Commission issues licenses for energy activity: in the electricity sector — the generation, transmission and distribution of electricity and the operation of the market; in the natural gas sector — transmission, distribution, operation of the storage system and of LNG devices, and market operation; as well as water supply. Conducting these activities without a valid license issued by the Commission is prohibited. The exceptions are defined as well: no license is required for generation solely for own consumption where the object is not connected to the network, for generation at the time of the object's acceptance into operation, for generation by small-capacity and micro-capacity plants, or for the activity of a closed distribution system operator. A small-capacity plant or an energy enterprise engaged in an activity not requiring a license — supply, trading in electricity or natural gas, or administration of the bilateral contracts platform — or intending to conduct such activity is obliged to declare this in the manner established by the law.
License Conditions
Under Article 12 the Commission issues a license to an enterprise satisfying the conditions established by the three legal acts. The applicant is obliged to substantiate, through the documentation envisaged by Article 13 of the law: the technical, economic, financial and operational (human resources) capabilities necessary for performing the functions related to the licensed activity; the ability to take the measures needed to ensure the quality of the service; and the ability to duly perform other obligations established by legislation for the relevant activity. In energy activity the applicant must also, where relevant, substantiate its ability to perform the public service obligations defined by law. These capabilities are mandatory license conditions; where the applicant cannot prove them, the Commission does not issue the license. The licensee must ensure performance of the license conditions throughout the license's validity; in supervision the Commission may demand documents confirming the conditions, and non-fulfillment is deemed a breach of the license conditions and entails the liability envisaged by the Law on Licenses and Permits and this law.
Issuance Procedure and Documentation
A license is issued in a transparent, objective, legally substantiated and non-discriminatory manner. Together with the application the applicant submits: documents confirming ownership of the devices necessary for the activity or their use, where necessary with an extension of temporary ownership for a minimum period defined by the Commission; documents confirming their acceptance into operation or conformity with the technical requirements; the technical condition of connection to the network or information on the technical parameters of the connection point confirmed by the network operator; the environmental decision where it is mandatory; the list of operational assets with their values and the audit report on the financial statements; the single-line scheme and plan of the network; and information on the organizational structure confirming the existence of qualified human resources. Where the Commission so demands, the applicant must further submit every factual circumstance — documents, data and information — confirming the satisfaction of the license conditions. The Commission publishes and permanently updates on its website the complete list of documents and the standard forms. The license is confirmed by a license certificate indicating, among other data, the license holder, the licensed activity, the service to be provided, the location of the main assets, the area of validity and the date of issue; the standard form of the certificate is approved by the Commission. Refusal is possible only on the grounds established by law, must be legally substantiated and duly explained to the applicant; every case of refusal, with its reasons, is notified to the Secretariat of the Energy Community, and a refusal may be appealed in the manner established by law.
The License in Time and Space
Under Article 15 these licenses are issued indefinitely. For the operation of the relevant segment of the electricity market and of the natural gas market only one license may be issued, granting the licensee the exclusive right to conduct the relevant activity on the territory of Georgia. Transmission, distribution and water supply licenses grant an exclusive right within the relevant geographical, administrative or other area defined by the Commission, and only one such license is issued per area; beyond this, the number of other energy licenses is not limited. For a wind farm this means that the generation license is indefinite and unlimited in number — limitations are qualitative, not quotas, and exclusivity is reserved for network activities rather than generation. The system also distinguishes licensable from non-licensable activities: supply, trading and platform administration require no license but require a declaration, keeping every form of market participation visible to the state.
Frequently Asked Questions
Below we answer the most frequent questions about wind farm permits.
Who issues energy licenses?
The Commission, which licenses generation, transmission, distribution and market operation in electricity; working without a valid license is prohibited.
When does generation not require a license?
For own consumption via an object not connected to the network, at the time of the object's acceptance into operation, and by small-capacity and micro-capacity plants.
For what term is a license issued?
Indefinitely; exclusivity applies to market operation and network activities within an area, while the number of generation licenses is unlimited.
What documents accompany the application?
Ownership or use, acceptance into operation, connection technical conditions, environmental decision, audit, schemes and organizational structure documents.
How We Help on Legal.ge
The lawyers of Legal.ge assist in preparing the license application for a wind farm: we verify which activities require a license and which a declaration, assemble the documentary package, and support your interaction with the Commission — an advance review substantially reduces the risk of refusal.