ANGOLA, GESTO SUPPORTS NEW ELECTRICITY REGULATION DEVELOPMENT

ANGOLA, GESTO SUPPORTS NEW ELECTRICITY REGULATION DEVELOPMENT

Luanda, 26 April 2021

The Presidential Decree no. 43/21, of 17 February, approved the new Regulation on Independent Electric Power Production (the “Regulation”).

Gesto developed this Regulation that establishes the legal framework applicable to the independent production of electricity.

Scope

This Regulation lays down rules on the independent electric power production for own needs and acquisition of production surplus to be injected in the grid.

The independent electric power production can be qualified has i) Independent production under the general regime; and ii) Independent production under the special regime, which in turn may be qualified as renewable or emergency independent power production.

Independent power production

Subject to the general regime: i) the generation of power by means of an independent power production unit – subject to registration, installation, and licencing requirements; ii) Under a power purchase agreement; iii) Executed with the national concessionaire for electricity transportation (RNT).

Independent renewable power production

Subject to the special regime, the generation of power by means of an independent renewable energy production unit. The independent renewable energy production is free. However, certain registration, installation and licensing requirements may apply, which vary depending on specific thresholds set out in the Regulation.

Independent emergency power production

Subject to the special regime, the generation of power by means of an independent emergency power production unit, provided that such production is made at the request of the RNT. Registration and licencing requirements also apply as set out in the Regulation.

Registration

Registration requests and exploration certificates will be submitted through the Independent Production Registration System online platform.

Registering Procedure

Registration applications are addressed to the National Directorate of Electric Energy or through the Independent Production Registration System. Registration acceptance will have a provisional nature.

Exploration certificate

Independent Power Producer definitive exploration certificates are issued to the registration holder after: i) installation of the Independent Production Unit; ii) connection to the electric grid; iii) Conclusion of the inspection procedure.

Remuneration

The Regulation lays down the power production remuneration rules, which vary depending on the applicable production regime: i) General regime – applicable to independent power production, or; ii) Special regime – applicable to independent renewable power production and independent emergency power production.

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The Presidential Decree 43/21 entered into force on the date of its publication – 17 February 2021.