Renewable Energy & Energy Efficiency Law, No. 3 of 2010

The renewable energy and energy efficiency law provides the legislative framework to encourage exploitation of enable energy sources, further supply-side energy efficiency and streamline private sector investment through incentives.

The law states that to achieve the objectives the government will focus on:
• Increasing investment in renewable energy extraction, thereby increasing the proportion of renewables in the energy mix
• Working towards sustainable development through environment-friendly energy extraction
• Pursuing rational and efficient energy extraction

The Ministry of Energy and Mineral Resources is in charge of enacting the law, and a first order of business was the identification of geographic areas for renewable energy exploitation. These areas, co-ordinated with the Ministry’s Energy Master Plan, will be prioritised for development in a Land Use List, approved by the Council of Ministers. Areas identified for exploitation that are “treasury land” (owned by the state) shall be allocated to renewable energy projects. Lands owned by individuals shall be purchased based on existing legislative authority, if approved by the Council of Ministers.

In addition to hosting a competitive bidding processes to develop projects on lands prioritised on the Land Use List, individuals or projects may approach the Ministry of Energy and Mineral Resources with a specific proposal to develop an extraction site on any lands in the country (already identified on the Land Use List or not) which have not already been allocated by a public tender. The law outlines the requirements for such proposals and a general outline for the decision making process.

The law specifies the purchasing arrangements of the electricity from bulk suppliers; much of this framework is pre-existing in the General Electricity Law.

Under the renewable energy law, individual homes may also produce their own renewable electricity, and sell any surplus energy back to the grid, with the price set by the purchase tariff specified in the Bulk Supply Licensees or the Retail Supply Licensees.

This law establishes the Renewable Energy and Energy Efficiency Fund, which shall be administratively and financially independent. The Fund is overseen by the Board of Directors of the Fund, composed of the vice-chairman of the Ministry of Energy and Mineral Resources; the secretaries-general of the Ministries of Environment, Planning and International Co-operation, and Finance; a commissioner nominated by the Chairman of the Board of Commissioners of the Commission, and three representatives of the private sector appointed by the Council of Ministers. The Fund draws resources from: government allocations from the general budget, returns on investments, aid or gifts from national or international donors.

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