28 of April 2021

Changes in the Angolan regulatory framework encourage new renewable energies

The Angolan government has established through the National Strategy for New Renewable Energy an overall goal of 800 MW of installed capacity by 2025. By that date it is expected that at least 7.5% of electricity generated in the country will come from new renewable energy.

To realize this vision in the horizon to 2025 it will be necessary to mobilize in addition to public, also private investments.

The mobilization of a new investment cycle, based on private investment without conditioning the investment in other areas which are also strategic for the country, requires that the sector and the country as a whole manage to create policies to attract private investment in order to generate revenue to sustain investments in the medium and long term.

In order for public investment to be progressively replaced and assured by the private sector in the long term, it is necessary to create a robust regulatory framework, modern and open to new renewable energies.

In this context, and in an effort to promote renewable energy solutions in Angola, a set of regulations were approved in 2021, of which we highlight the Regulation of Activities of Production, Transmission, Distribution and Commercialization of Electricity, approved by Presidential Decree No. 76/21 of March 25 and the Regulation of Independent Production of Electricity, approved by Presidential Decree No. 43/21 of February 17.

The Regulation of Activities of Production, Transmission, Distribution and Commercialization of Electricity established the regime of Binding Renewable Generation which falls under the Special Public Electricity System Binding Generation, and includes all electricity generation based exclusively on renewable sources, excluding hydroelectric plants of more than 10 MW.

On the other hand, the Independent Generation of Electricity Regulation established a Special Independent Generation regime, of which Renewable Independent Generation is a part.

Still thinking about the realization of the vision for the horizon up to 2025, in late 2020 the Economic Commission of the Council of Ministers approved a Framework of Incentives for Private Investment in Renewable Energy, which will materialize with the approval and creation of some tax regimes specific to these technologies, as well as mechanisms to safeguard the exchange rate risk or default by the Single Buyer.

With this new regulatory framework we believe that the stone is laid for the construction of a safe and competitive investment in the renewable energy market in Angola and IRSEA as a regulatory body, hopes to continue to count on the support of ALER, as on other occasions to leverage the development of renewable energy in our country.

These are the themes we will address during the first "ALER Talks" on May 27 at 10:30a.m. We invite everyone to be present, follow up and contribute to the conversation and the topics mentioned.

Marino Bulles

Chief of Technical and Legal Department of IRSEA