ANGOLA, GESTO DEVELOPS NEW ELECTRICITY REGULATION

ANGOLA, GESTO DEVELOPS NEW ELECTRICITY REGULATION

Luanda, 8 June 2021

The presidential Decree no. 76/21, ratified the new Regulation on Production, Transmission, Distribution and Supply of Electricity which sets forth the legal framework for production, transmission, distribution, and supply of electricity in Angola.

Gesto in partnership with VDA law firm, developed this new Regulation that establishes the Bases for the Concession of Production, Transmission, Distribution and Supply of Electricity in Angola.

Regulation highlights:

Production

    Can be developed under a public service concession or on a free competition basis and it has 3 different regimes:

   i)   Production for the Public Electricity System under the general regime – Production under public service concession that is not under a special legal regime.

   ii)  Production for the Public Electricity System under special regimes – Production activity under a special legal regime:

         a)    Renewable Production: Applicable to energy production based on renewable sources with capacity up to 10MW;

         b)    Production in Isolated Systems: Applicable up to 5MW in small systems – under the Public Electricity System – but not interconnected to the main transmission network.

   iii)    Production outside the Public Electricity System:

        a) Independent production, intended partially for public supply and also for self-production;

         b) Self Consumption.

Transmission

  Will be on an exclusivity basis, through concession granted to operate the National Transmission Grid. The Regulation establishes the continuity of the current Concessionaire: Rede Nacional de Transporte de Eletricidade, E.P.

Distribution

  Will take place by means of concession regime or under license. A concession may cover several distribution areas and can include distribution licenses in isolated systems. Under the Regulation, current concessions shall remain in force. The Regulation also allows for the creation of new geographical distribution areas that can be granted through a concession.

Commercialization

It will be carried out under a license granted by the Minister of Energy and Water. The license will establish the geographic scope and the type of eligible customers, by class, connection voltage or metering type. The granting will have a duration of no less than 5 and no more than 20 years.

By the Presidential Decree no. 76/21, of 25 March, the Regulation entered into force on the date of its publication, March 25, 2021, thus revoking the Regulations for Electricity Generation and the Regulation for Electricity Distribution, approved respectively by Decree 47/01, of July 20, and Decree 45/01, of July 13.