“The coming into force of the regulations is timely! It is an instrument that will change the energy sector as the whole society is awakening and realizing the potential of energy for the whole country and at the same time a great incentive for the private sector in terms of boosting the generation and distribution of energy” - Vicente Matsinhe, National Coordinator, TSE4ALLM project

This regulation was published on December 10th after being formally approved in Sept 14th by the board of ministers and according to the rules it will be enter into force 45 days after publication. The regulation was developed as a response to strengthen the current legal framework of the energy sector to accelerate access to energy in off-grid areas with a particular emphasis of boosting productive uses of energy and related socio-economic development across the country.

Undertakings that fall under the investment regime defined by this regulation include initiatives aimed at improving access to energy in off-grid areas, which create and use virtual physical infrastructure or systems, installations, equipment, software and other accessory components, essential for access to energy, catalysts for the development and exploitation of industry, commerce, fisheries, agriculture, and other sectors of activity.

Going forward and as a result of the enforcement of this regulation, the private sector will be more attracted to invest in renewable energy particularly in mini-grids which have now been segmented and classified according their respective installed capacities as follows:

a.Category 1: Minigrids with installed capacity ranging from 1.001 MW – 10 MW
b.Category 2: Minigrids with installed capacity ranging from 151kW – 1 MW
c.Category 3: Minigrids with installed capacity up to 150kW

Under the TSE4ALLM project, given that the project is targeting small to medium size installations, it is expected that most of the systems will fall under category 3 which are exempt from the obligation to obtain the establishment and exploration licenses, without prejudice to any of the duties of the investor pertaining system operation and maintenance and for the respect of the principles and standards of quality, safety and reliability as well as of the respective inspection by the Regulatory Authority of Energy (ARENE).