Power supply with micro capacity on the site

A micro-capacity power plant constitutes an electricity production facility owned by a consumer or a group of consumers (including through ownership, lease, leasing, or other forms), which utilizes a renewable energy source and is connected to the electricity distribution network either through the consumer's internal network or directly to the distribution network. The installed capacity of a micro-capacity power plant shall not exceed 100 kilowatts.

Until the total installed capacity of micro-capacity power plants in the system operator’s distribution network reaches 20% of the peak load, the upper limit of the installed capacity of a micro-capacity power plant connected to the system operator’s distribution network shall be 500 kilowatts.

In the case of both a single subscriber and a group of consumers, the total installed capacity of the micro-capacity power plant shall not exceed the permissible installed capacity of a micro-capacity power plant.

Excess electricity generated by a micro-capacity power plant connected before January 1, 2027, shall be subject to the compensation conditions established by the Retail Market Rules that were in effect at the time of the connection of the micro-capacity power plant to the distribution network, as follows:

a) If the micro-capacity power plant was connected to the distribution network when the limit for the total installed capacity of micro-capacity power plants connected to the system operator's network was utilized – the net billing settlement mechanism provided by the Retail Market Rules shall apply to the excess electricity produced by it;

b) If the micro-capacity power plant was connected to the distribution network when the limit for the total installed capacity of micro-capacity power plants connected to the system operator's network was not utilized – the net metering settlement mechanism provided by the Retail Market Rules shall apply to the excess electricity produced by it;

c) A consumer owning a micro-capacity power plant is entitled to request in writing the transition to the settlement regime defined in sub-paragraphs "a" or "b" above, which is in effect at the time of the submission of the request.

It is prohibited to connect a micro-capacity power plant with an installed capacity exceeding 100 kilowatts to the distribution network, or to increase the installed capacity of an already connected micro-capacity power plant to more than 100 kilowatts, when the total installed capacity of micro-capacity power plants connected to the system operator’s distribution network exceeds 20 percent of the peak load of the same distribution network. (20% of the peak load in the network of JSC "Energo-Pro Georgia" is utilized).

Connection of a Micro-capacity Power Plant to the Distribution Network

A retail consumer or a group of consumers is entitled to request the connection of a micro-capacity power plant in their possession to the distribution network. The connection of a micro-capacity power plant to the distribution network is subject to the payment of the "Micro-capacity Power Plant Connection Fee" to the distribution licensee, in accordance with the requirements of the "Electricity Distribution Network Rules" (hereinafter – the "Rules") approved by the Resolution No. 19 of June 28, 2021, of the Georgian National Energy and Water Supply Regulatory Commission. The installed capacity of a micro-capacity power plant owned by a retail consumer shall not exceed the connection capacity of the consumer to the distribution network, and the installed capacity of a micro-capacity power plant owned by a group of retail consumers – the total connection capacity of that group of consumers to the distribution network.

The utilization of a micro-capacity power plant may be requested by both an existing consumer and an applicant seeking connection for a new facility. Accordingly, a person wishing to utilize a micro-capacity power plant shall, as requested, pay:

a) In the case of connection to the internal network of an existing consumer – the "Smart Meter Installation Fee" defined by Annex No. 4 of the Rules;

b) In the case of direct connection of the micro-capacity power plant to the distribution network – the "Connection Fee for a New Facility to the Distribution Network at 0.220 kV, 0.380 kV, and 6/10 kV voltage levels" provided by Annex No. 2 of the Rules and the "Smart Meter Installation Fee" defined by Annex No. 4;

c) In the event of a request by a consumer to utilize a micro-capacity power plant (for the installation of a smart meter) – the "Smart Meter Installation Fee" defined by Annex No. 4, except for cases where the consumer is connected to the low-voltage side of a common transformer point or already possesses a smart meter;

d) In the case of capacity increase, where there is an increase in the consumer's connection capacity while using a micro-capacity power plant connected to the internal network, or an increase in the capacity of a micro-capacity power plant connected directly to the distribution network, or an increase in the capacity of a consumer using a micro-capacity power plant – the fee provided by the Rules for capacity increase.

Accounting for the Capacity of Self-Generation Facilities

A consumer owning a self-generation facility (including a micro-capacity power plant) with an installed capacity of 50 kilowatts or more is obligated to attach to the network connection application, and periodically update with the system operator, information regarding the installed capacity of the self-generation facility.

The confirmation of the installed capacity of a self-generation facility is carried out on the basis of a conclusion/act "On the Confirmation of the Installed Capacity of a Self-Generation Facility." The conclusion/act must cover the sections on the arrangement of the self-generation facility and its connection to the internal network, as well as information regarding the installed capacity of this self-generation facility, and capacities placed in reserve and/or under repair.

For a micro-capacity power plant connected to the distribution network via an inverter, the installed capacity is defined as the lesser of the installed capacity on the Alternating Current (AC) side of the inverter and the installed capacity of the production equipment on the Direct Current (DC) side.

In cases where there is a request for the connection of a self-generation facility with an installed capacity of 50 kilowatts or more to the distribution network, but the requested installed capacity of the self-generation facility cannot be confirmed at the time of application by the applicant, the conclusion of an accredited person "On the Confirmation of the Installed Capacity of a Self-Generation Facility" must be submitted to the system operator within 8 months from the completion of the connection works.

Control of Installed and Connection Capacity of a Micro-capacity Power Plant

In the event of a change in the installed capacity of a micro-capacity power plant (including a micro-capacity power plant connected to the consumer's internal network), the consumer is obligated to immediately notify the system operator in writing.

If the installed capacity of a micro-capacity power plant owned by a consumer or a group of consumers exceeds the total connection capacity of the consumer or the group of consumers to the distribution network (but does not exceed the upper limit of the installed capacity established for a micro-capacity power plant by the Commission), the system operator shall determine a period of no less than 20 days for the consumer or group of consumers registered under the subscriber number to initiate the process of increasing the connection capacity (by submitting an appropriate application to the system operator) and/or to bring the installed capacity of the micro-capacity power plant into compliance with the connection capacity of the consumer (or group of consumers) to the distribution network. Upon the expiration of this period without result, the system operator, after providing a warning to the consumer or the group of consumers via text message at least 10 working days in advance, shall suspend electricity supply to the micro-capacity power plant or the consumer to whose internal network the micro-capacity power plant is connected.

If the installed capacity of a micro-capacity power plant exceeds the upper limit of the installed capacity established for a micro-capacity power plant by the Commission, the energy production facility shall lose the status of a micro-capacity power plant provided for in the first paragraph of Article 21 of the Rules from the moment this fact is recorded, and the billing and settlement conditions established by the legislation of Georgia for the consumer owning the micro-capacity power plant shall be suspended.

In 2024, the maximum peak load of the JSC "Energo-Pro Georgia" distribution network amounted to 1098 MW. According to Paragraph 9 of Article 21 of Resolution No. 19 of June 28, 2021, of the Georgian National Energy and Water Supply Regulatory Commission, the maximum permissible installed capacity of micro-capacity power plants on the network amounts to 219.6 MW. As of February 28, 2025, the installed capacity of micro-capacity power plants connected to the network and received via application has exceeded the permissible capacity on the network.

The 2025 peak load of the JSC "Energo-Pro Georgia" distribution network amounted to 1168 MW, while according to the data of the first quarter of 2026, the total installed capacity of micro-capacity power plants reached 241.4 MW.