Building a power plant in Georgia takes four main approvals: an environmental decision or screening decision, a construction permit, a grid connection agreement and, for plants above 15 MW, a generation licence from the regulator. This guide explains who issues each one, which projects need a full environmental impact assessment (EIA), the legal timelines and how to work with communities so that a permitted project actually gets built. Rules are as of October 2026.
Which permits does a power plant need in Georgia?
| Approval | Issued by | Who needs it |
|---|---|---|
| Environmental decision (after EIA) or screening decision | Environmental agency under the Environmental Assessment Code (source) | Hydropower from 2 MW, wind farms, thermal plants from 2 MW (see below) |
| Construction permit | The municipality or the Ministry of Economy and Sustainable Development, depending on the facility's class | Every new plant |
| Grid connection agreement | GSE for the transmission grid, the distribution company for lower voltages | Every grid-connected plant |
| Generation licence | GNERC, the energy regulator (source) | Plants above 15 MW |
| Land rights | Public Registry (ownership or lease); state land by lease or purchase | Every plant |
| Revenue support (optional) | Ministry of Economy renewable auctions (source) | Projects seeking a price guarantee |
The order matters: under the Code, a licence or permit that depends on an environmental decision can only take effect after that decision is issued (source).
Does my project need an EIA?
The Environmental Assessment Code sorts projects into two annexes (source):
| Project | Annex | What happens |
|---|---|---|
| Hydropower plant of 5 MW or more | Annex I | Full EIA is mandatory |
| Hydropower plant of 2–5 MW | Annex II | Screening decides whether an EIA is needed |
| Wind farm (any size) | Annex II | Screening |
| Combustion power plant of 2 MW or more | Annex II | Screening |
| Hydropower under 2 MW | Not listed | No EIA under the Code; other rules still apply |
| Solar PV plant | Not named in the annexes | Confirm early with the environmental agency, especially for large ground-mounted plants |
EIA applications, scoping reports and public hearings are published on the National Environmental Agency's portal (source).
How long does the EIA take?
The Code sets fixed windows for each stage (source):
| Stage | Legal timeline |
|---|---|
| Scoping: public discussion | 10–15 days after the application is published |
| Scoping opinion (list of required studies) | 26–30 days after the application is registered |
| Baseline studies and EIA report | Set by the developer; hydrology, fish and biodiversity work usually needs at least a full year of data |
| Public comments on the EIA report | Within 40 days of publication |
| Public hearing of the EIA report | 25–30 days after publication |
| Environmental decision | 85–90 days after the application is registered |
The decision has no expiry date, but it becomes invalid if the activity does not start within 7 years, and it can be transferred to a new owner through an accelerated 10-day procedure (source). Both points matter when you buy a development-stage project.
Construction permit
A construction permit is required for every plant, and the authority depends on the facility's class and location: large energy facilities are usually permitted at national level by the Ministry of Economy and Sustainable Development, smaller ones by the municipality. Permits are typically staged (site use conditions, architectural design, then the permit itself), and the environmental decision has to be in place first.
Grid connection
Grid capacity is now one of the tightest constraints. GSE, the transmission system operator, has set limits on how much new variable renewable capacity the grid can take: 0.75 GW for wind and 0.5 GW for solar, according to Galt & Taggart's June 2025 market review (source). In practice:
- Apply for connection early and treat the connection offer as a key project document.
- Check who pays for substation and line upgrades and when the reinforcements are scheduled.
- For hydro, check whether the connection allows full output in the spring flood, when lines are most loaded.
Generation licence
Under the Law on Energy and Water Supply, plants up to 15 MW do not need a generation licence but must notify the regulator; larger plants need a GNERC licence, and microgeneration (100 kW in the law, raised by GNERC to 500 kW) follows net metering or net billing rules; see our net metering guide (source). See our guide to GNERC and its role.
Stakeholders: the approvals that are not on paper
A complete permit file does not guarantee a project. The Namakhvani hydropower project in western Georgia faced more than 200 days of protests, and in September 2021 the Turkish developer ENKA terminated its agreement with the government (source). The lesson for investors is that community acceptance is a real permitting risk.
| Stakeholder | Why they matter |
|---|---|
| Local residents and landowners | Land access, construction disruption, water use, compensation |
| Municipality and local council | Local permits, roads, public hearing logistics |
| Environmental NGOs | Biodiversity, river flows and cumulative impacts; active at hearings and in court |
| Ministries and agencies | Environmental decision, construction permit, land, support schemes |
| Lenders (EBRD, ADB, IFC and others) | International standards that often go beyond Georgian law |
What works:
- Engage before the scoping hearing, not at it, and explain the project in Georgian with clear maps.
- Agree how environmental flows, fish passage and water use for irrigation will be handled.
- Hire locally, and put commitments in writing with a public grievance mechanism.
- Publish monitoring results during construction and operation.
For more detail see our guides to stakeholder management for energy projects and ESG in Georgian hydropower.
Permit checklist when buying a project
- Environmental decision: issued, its conditions, started within 7 years, transferable to the buyer.
- Construction permit: which stage is complete, and whether the design still matches the permit.
- Grid connection agreement: capacity, voltage, upgrade costs and deadlines.
- Generation licence or regulator notification, depending on size.
- Land title and leases registered in the Public Registry, including access roads and the line route.
- Records of public hearings, community commitments and open grievances.
Our regulatory and ESG advisory teams review permit files and community risk for investors.
Planning or buying a power project in Georgia? Contact us.
