Regulation of electricity utilities – power generation

Authorisation to construct and operate generation facilities

What authorisations are required to construct and operate generation facilities?

The authorisation to develop generation (without prejudice to the exemption applicable to non-tied producers) activities is granted through concession agreements, entered into with the Angolan government, or through licences granted by the local authority, depending on the circumstances.

On the other hand, construction of electric facilities is subject to the licensing procedures prescribed in Decree No. 41/04 of 2 July, the Regulation for the Licensing and Security of Electric Facilities.

Under this Regulation, any entity interested in developing new electric facilities is required to obtain an establishment licence (which grants the authorisation for the construction of the facility) and, subsequently, an exploration licence, which grants the necessary authorisation to start operating the facility.

The request for these licences is made to the licensing entity (the entity within the energy sector Ministry that is competent to conduct the licensing process), with full details of the project and all other elements necessary to understand the project as a whole.

The licensing entity may impose any modifications it deems essential to ensure the safety of the population and assets as well as compliance with the applicable security regulations. In certain situations, the project may be subject to various consultation procedures, namely with affected populations or official departments in charge of activities that are affected by the project in question.

After all the foregoing formalities are successfully concluded, an establishment licence is granted after the payment of the fee, allowing the commencement of construction. Usually, the project developer is obliged to finish the construction works within two years of the establishment licence being granted, although this may be extended depending on the circumstances.

Following the completion of the construction works, the project developer should request an inspection to ensure compliance of the facility with all applicable rules. If it complies, the exploration licence is granted (no later than 15 days after the inspection) and the facility may enter into operation.

In certain cases - mostly construction of small facilities that do not interfere with public domain terrains or assets - there may be an exemption from obtaining the establishment licence, or both the establishment and exploration licences.

Grid connection policies

What are the policies with respect to connection of generation to the transmission grid?

Network access of generators is made under the terms of the Network Access Regulation, approved by Presidential Decree 19/11 of 17 January.

Access to networks must be done in a non-discriminatory fashion by the Rede Nacional de Transporte de Electricidade, EP (RNT) concessionaire (see question 9) and tied distributors in high voltage and low voltage, as long as they have, as applicable, transmission or distribution capacity in the respective network and such access does not affect the standards of quality of service and security of supply.

Technical and commercial terms and conditions to use PES networks and interconnections vary in accordance with the type of user and network and must be agreed upon by the relevant agents.

Alternative energy sources

Does government policy or legislation encourage power generation based on alternative energy sources such as renewable energies or combined heat and power?

Presidential Decree No. 88/13 of 14 June established the Strategic Plan for New Environmental Technologies, which is divided into two perspectives, a transversal and a sectorial perspective. The governmental body in charge of implementing this project is the General Directorate for Environmental Technologies.

The transversal perspective aims essentially to promote, disseminate, foster and raise public awareness towards the use of environmental technologies in Angola, mainly by:

  • developing information campaigns using the existent social media;
  • implementing information campaigns in schools and local communities;
  • creating a platform to share information between entities related to the environmental technologies industries; and
  • promoting the country’s adherence to an international sustainability index.

The sectorial perspective focuses on promoting and implementing tailored measures and actions by economic sector, including specific programmes for the following sectors:

  • real estate and construction;
  • agriculture and forestry;
  • industry;
  • energy and water;
  • oil; and
  • transportation.

Recently the government has also announced the ‘Atlas for the New and Renewable Energies’ whereby it has committed, until 2025, to install 800MW of renewable energy generation facilities, and further, to a target of 7.5 per cent of electricity generated to come from renewable energies.

Climate change

What impact will government policy on climate change have on the types of resources that are used to meet electricity demand and on the cost and amount of power that is consumed?

Angola is a party to the United Nations Framework Convention on Climate Change, although currently assuming no binding targets for emissions reduction.

The main instrument of government policy addressing climate change and the non-binding commitments assumed is Presidential Decree No. 88/13 of 14 June (see question 5).

Storage

Does the regulatory framework support electricity storage including research and development of storage solutions?

There is no specific governmental policy or legislation concerning energy storage.

Government policy

Does government policy encourage or discourage development of new nuclear power plants? How?

Angola does not have any nuclear power generation facilities in its territory and there is no specific governmental policy concerning the promotion of nuclear power.