Authorization and Licensing of Energy Activities in Georgia

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Authorization and Licensing of Energy Activities

Which energy activities require a license?

A license is required for electricity generation, transmission, distribution and market operation, for natural gas transmission, distribution, storage system and LNG devices operation and market operation, as well as for water supply. Carrying out these activities without a valid license is prohibited.

When does electricity generation not require a license?

When a person generates electricity solely for their own consumption and the generation and consumption objects are not connected to the network, as well as at the time of commissioning of the object and when generating by small or micro capacity power plants.

What must a license seeker substantiate?

Technical, economic, financial and operational capabilities for performing the activity's functions, the ability to take all measures needed to ensure service quality, and the ability to perform other statutory obligations; in relevant cases, also the ability to perform public service obligations. Failure to prove them means the commission will not issue the license.

Within what period is the notification of non-licensed activity submitted?

No later than 5 working days from the start of supply, trading or bilateral contracts platform administration activity, the enterprise submits a written notice to the commission. The notification is informational, and the commission has no right to prohibit the activity.

What applies to water supply license documentation?

The documents must confirm the systems' compliance with technical regulations and standards, including the pipelines' capacity to ensure safe, continuous, 24-hour and reliable drinking water supply. Where the means are used through a third party, that party must be a water supply licensee.

7 min·26 Aug 2026

Energy Activity and Its Types

For the purposes of the law, energy activity covers, on the one hand, electricity sector activity, which includes the generation, transmission, distribution and supply of electricity, trading in electricity, the operation of the electricity market, the administration of a bilateral contracts platform and the operation of a closed electricity distribution system. On the other hand, natural gas activity includes the production, transmission and distribution of natural gas, the operation of a gas storage system, the operation of liquefied natural gas devices, supply, trading, market operation, the administration of a bilateral contracts platform and the operation of a closed distribution system.

An important exception is that the generation of electricity without using the transmission or distribution network, for the purpose of full personal consumption, is not regulated by the law, except where such a producer intends to sell surplus electricity to another electricity enterprise or to a customer. Thus, generation connected to the network, or surplus energy offered for sale, again falls within the scope of regulation.