New Regulation on Independent Electric Power Production in Angola

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

This statute puts pen to paper on the legal framework applicable to the independent production of electricity further detailing the existing high level rules that were laid down under the General Electricity Law – Law no. 14-A/96, of 31 May 1996 (as amended by Law 27/15, of 14 December 2015).

Purpose: The Regulation lays down rules on (i) the independent electric power production for own needs, and (ii) the acquisition of production surplus to be injected in the grid.  

Scope: The Regulation apply to all independent power producers, either natural persons or legal entities.

Production regimes: Under the Regulation, the independent electric power production can be qualified as follows:

A)    Independent production under the general regime;

B)    Independent production under the special regime, which in turn may be qualified as renewable or emergency independent power production.  

Production requirements:

A)    It is deemed independent power production, subject to the general regime, inter alia, (i) the generation of power by means of an independent power production unit (“IPPU”), (ii) under a power purchase agreement, (iii) executed with the national concessionaire for the electricity transportation grid (RNT). The IPPU is subject to registration, installation and licencing requirements;

B)    It is deemed independent renewable power production, subject to the special regime, the generation of power by means of an independent renewable energy production unit (“IREPU”). 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.

C)    It is deemed independent emergency power production, subject to the special regime, the generation of power by means of an independent emergency power production unit (“IEPPU”), provided that such production is made at the request of the national concessionaire (RNT). Registration and licencing requirements also apply as set out in the Regulation.

Online Registration Platform: Registration requests and exploration certificates will now be submitted and issued via a one-stop online registration platform– the Independent Production Registration System.

Registration 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: IPPU definitive exploration certificates are issued to the registration holder upon (i) installation of the Independent Production Unit, (ii) connection to the grid delivery point, and (iii) conclusion of the respective inspection procedure.

Remuneration: The Regulation lays down the power production remuneration rules, which vary depending on the applicable production regime, i.e., general regime (applicable to independent power production) or special regime (applicable to independent renewable power production and independent emergency power production).

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