New Electricity Law

• Published date: 02 August 2022
• Subject Matter: Energy and Natural Resources, Energy Law, Renewables
• Law Firm: PLMJ
• Author: Mr PLMJ

In general terms, the New Electricity Law is intended to:

• Extend the conditions for the opening of the electricity generation and supply market to the private sector;
• Ensure increased and universal access for all users to quality and reliable electricity, especially from renewable sources;
• Promote the continuation of the electrification of the country reiterating the focus on things such as self-consumption, storage and mini-grids.

Most important amendments

Private initiative access to electricity sector activities

Law 12/2022 comes in the era of regulation and in the context of the major objectives of universal electrification and energy transition.

The current Five-Year Plan 2020-2024 established a strategy to increase renewable production capacity, by promoting public and private investments in new production infrastructures and new network availability, especially transmission.

The New Electricity Law broadens this new strategic design, in the wake of the most recent developments in the previous legal framework, including the tenders launched to build and operate hydroelectric and solar photovoltaic power plants.

Hybridisation and storage are allowed, as is the sale of surplus electricity to the public network

Thus, private access to electricity generation and supply activities is guaranteed to a greater extent and, although dependent on state concessions (including in the form of public-private partnerships), it is no longer subordinated to the overriding interests of the state. However, it is still necessary to safeguard national interests.

Renewable energies: awarding of concession by direct award

The activities of production, storage, transport, distribution and/or sale, as well as the construction, operation and management of electrical facilities require a concession.

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