Georgia combines relatively simple business establishment with a renewable-energy market that is still developing. For international companies, that creates opportunity, but also requires careful attention to land, permits, grid access, support mechanisms and local partnerships.

Irakli Pipia is Head of Legal at SCHNEIDER GROUP’s Tbilisi office. His work includes corporate and commercial matters, real estate, business establishment, permits and due diligence for international clients entering Georgia.

In an interview with renewables.GE, Pipia explains what foreign renewable-energy companies should examine before entering the market and what could strengthen Georgia’s position as a regional business base.

Why international companies consider Georgia

renewables.GE: From your experience, what usually attracts international companies to Georgia?

Irakli Pipia: Georgia is still a developing market and can offer foreign investors opportunities that may be less accessible in more mature markets.

The ease of doing business, flexible regulations and liberal investment regime are also important factors. By a liberal investment regime, I mainly mean the absence of restrictions on foreign ownership of companies in the energy sector, full repatriation of profits and a simple, fast company-registration process.

The resource base is another factor. Strong hydropower potential, good wind corridors in the Kartli region and significant solar potential could support substantial additional generating capacity.

Georgia’s geographic position – between the Black Sea, Türkiye, Russia and Central Asia – also makes it attractive not only as a market, but as a possible base of operations.

renewables.GE: What should a foreign company understand before deciding to enter the Georgian market?

Irakli Pipia: Foreign companies should understand that Georgia is still developing its regulatory maturity, which cuts both ways. The market is easy to enter, but the electricity system is relatively small and seasonal. It relies heavily on hydropower, import dependence rises in winter, and grid capacity is already constrained in some regions.

A company should understand the mechanics of the renewable-energy support scheme, including contracts for difference, the role of ESCO as the state electricity-market operator, and how permitting works in practice rather than only on paper.

Georgia is a civil-law jurisdiction moving towards EU-aligned energy-market rules under its Energy Community membership. The regulatory environment is therefore evolving quickly, and today’s rules may look different in two or three years. The legal framework and the practical business environment can change significantly after an investor enters the market.

Foreign investors may also need patience. Administrative procedures can appear fast on paper but take longer in practice, and pushing too hard for speed can sometimes be counterproductive.

Choosing a structure and securing the project site

renewables.GE: What are the main options for establishing a business presence in Georgia, and how should a company decide which structure is most suitable?

Irakli Pipia: A limited liability company is the most widely used legal form. It is the standard, flexible vehicle for project development: it can be registered quickly, has no general minimum-capital requirement and may be wholly foreign-owned.

Joint-stock companies are also used, particularly for larger projects with multiple shareholders. Unlike an LLC, a JSC is subject to a statutory minimum-capital requirement and more formal rules concerning its shares and governance. The appropriate structure depends on the project’s size, financing model, ownership arrangements and plans for bringing in additional investors.

renewables.GE: Which legal or administrative issues are most often underestimated by companies entering Georgia?

Irakli Pipia: Many investors assume that because company registration and general business setup are fast, land assembly will be equally fast. It rarely is. Cadastral records can be incomplete or inconsistent.

Agricultural land is subject to special ownership restrictions. A Georgian-registered company controlled by foreign investors may acquire agricultural land only under the conditions established by law, including government approval based on an investment plan in applicable cases. Long-term leasing or changing the land’s designated purpose may be alternatives, depending on the site and project.

Companies also underestimate how much local coordination is required for permitting. Environmental assessment, construction permitting and grid connection involve different authorities. If these processes are not sequenced properly, timelines can slip and delay project implementation.

renewables.GE: For renewable-energy companies, which legal questions are especially important – land rights, project ownership, permits or contractual due diligence?

Irakli Pipia: All of them are important, but in a specific order of priority.

Land rights come first: confirm the cadastral registration, chain of title and whether the site is classified as agricultural or non-agricultural land. That classification can materially affect the ownership and development options available to a foreign investor.

Second is the support-scheme contract itself: the contract-for-difference terms, ESCO as counterparty, termination and force-majeure provisions, and what happens if construction milestones slip. Negotiations on these issues can take considerable time in practice.

I would include grid connection at this stage as well. A developer should seek a technical connection agreement with the transmission or distribution operator early, because capacity is limited in some corridors and connection queues can materially affect project timing.

Third is environmental permitting, particularly for hydropower projects given Georgia’s history of local community opposition to some developments. Social licence can matter as much as the legal permit.

Fourth is standard project due diligence: confirming that there are no competing claims, liens or unresolved disputes concerning the site or the special-purpose vehicle holding the project.

Due diligence and local partnerships

renewables.GE: What should an international company check before investing in a Georgian project or entering a partnership with a local company?

Irakli Pipia: Beyond the usual financial and legal due diligence, I would highlight two Georgia-specific checks.

First, verify the actual status of permits and land rights against the Public Registry. Do not rely solely on representations, because documentation gaps can arise even in good-faith transactions.

Second, check whether the project or local partner has existing obligations under a support scheme – including bank guarantees, milestone deadlines or prior auction commitments – that could be inherited or breached.

renewables.GE: How important is having a strong local partner, and what should both sides agree clearly from the beginning?

Irakli Pipia: A strong local partner can be very important, particularly for permitting, land assembly and relationships with municipalities and local communities. These are areas where a capable local partner can genuinely accelerate a project.

However, ‘strong’ should mean competent and reputable, not merely well-connected; the two are not always the same.

From the outset, both sides should agree in writing on their respective capital contributions and how future funding needs will be met, because this often becomes a source of disputes. They should also define decision-making authority, particularly for budget overruns, financing and any sale of the project; how profits will be divided; a realistic timeline; and responsibility for permitting, construction and operations.

Ambiguity on these points at the beginning is one of the most common sources of partner disputes later.

renewables.GE: Apart from legislation, are there aspects of Georgian business culture that foreign companies should understand?

Irakli Pipia: Relationships matter. Decisions often move faster and more smoothly when there is a personal relationship and visible respect for local stakeholders, including communities near hydropower or wind sites.

Georgia’s civil society and media are also active on environmental issues, particularly around hydropower. Companies that engage communities early and transparently are better placed to avoid the kind of local opposition that has delayed or derailed projects in the past.

Georgia as a regional base

renewables.GE: Could Georgia serve as a base for companies working across the South Caucasus or connecting with Central Asian markets?

Irakli Pipia: Yes, and this has long been part of Georgia’s investment proposition.

Georgia is located on the planned route of the Black Sea Submarine Cable, which is intended to strengthen electricity connectivity between the South Caucasus and Europe. It also has established trade and transit relationships with Türkiye, Armenia and Azerbaijan.

For a company with regional ambitions, Georgia offers a comparatively accessible, English-friendly business environment, an established banking sector and a broad network of free-trade arrangements. These factors can support a regional-hub strategy.

renewables.GE: What changes would make Georgia even more attractive to international investors and renewable-energy companies?

Irakli Pipia: Several areas stand out.

Investment in grid infrastructure, together with more transparent and regularly published information on available connection capacity, would reduce a major source of project risk and delay.

Continued improvement in the completeness and digitisation of land-registry information would make due diligence faster.

Greater predictability and consistency in the administration of renewable-energy support mechanisms would also help investors commit capital with more confidence.

None of these challenges is unique to Georgia; most emerging renewable-energy markets face similar growing pains. Addressing them, however, would help Georgia move from a promising market towards a genuinely mature investment destination.

Editorial note

The responses were edited for clarity, language and factual consistency. They provide general business and legal context and do not constitute advice for a specific investment or transaction.