Electricity industry overview

Electricity industry overview

• The energy matrix in Angola in the last five years has changed considerably. Installed capacity in Angola is above 4,889 GW, distributed by the following types of generation: i) hydro power, with a capacity of 3,005 GW / 61% of total power; ii) thermal, with an installed capacity of 1,866 GW / 31% of total power; iii) natural gas, with a capacity of 0.375 GW / 7% of total power; and iv) renewable energies, with a capacity of 0.063 GW / 1% of total power. The electricity sector is in an important phase of transition and exit from a long period marked by a generation deficit and an unreliable supply and constant blackouts. The entry into operation of the Cambambe heightening, the Soyo and Laúca power stations, with more than 3.5 GW, constitutes a reinforcement.
• Important reinforcements in terms of production, mainly in the Northern System, made it possible to reduce the deficit in production and the use of diesel for the production of electricity. It is expected that PRODEL (Empresa Pública de Produção de Electricidade – Angola’s national energy generation entity) will reach 5.4 GW of installed power by 2022. The public effort in terms of production should be based on the operationalization of projects that are being concluded and on the maintenance, relocation and reconversion of fuels from existing thermal power stations. Transport will play a key role in consolidating and optimizing the electricity sector, with a view to taking energy from the Northern System to Luanda, the Center and the South of the country.
• Governance objectives in the sector go beyond the completion of ongoing projects. The priority in the Government’s program is access: guaranteeing access to water and electricity produced from the Kwanza River and natural gas from Soyo to at least half of Angolan families and companies by 2022. 

Electricity laws

• The restructuring of the sector began in 1996, with the publication of the General Law of Electricity 14-A/96, which combined with the 2011 Angola Energy Security Policy to to pave the way for the publication of new regulations essential to the energy market and the amendment of the General Electricity Law, Law nº 27/15.
• The General Electricity Law, approved by Law no.14-A/96, of 31 May, as amended by Law no. 27/15, of December 14, established the general principles of the legal regime carrying out the activities of production, transport, distribution, marketing and use of electricity.
• Presidential Decree nº. 43/21, of February 17, which approved the new Regulation for Independent Electric Energy Production. The Regulation establishes the legal regime applicable to the independent generation of electricity and details the general rules on this matter provided for in the General Electricity Law - Law No. 14-A/96, of May 31, 1996 (as amended by the Law 27/15, of December 14, 2015).
• The Regulation establishes rules on (i) the independent production of electric energy aimed at satisfying its own needs, and (ii) the acquisition of the respective surplus for public supply.
• Scope of application: The Regulation applies to all natural and legal persons who carry out the activity of independent production of electricity.

Summary of the electricity industry in Australia

• In Australia, the burning of fossil fuels has been the predominant driver behind the production of electricity given the abundance of onshore and offshore gas, oil and minerals found in-country, accounting for over 70% of electricity generated in the National Energy Market (NEM) in 2020 according to the State of the Energy Market 2021 Report released by the Australian Energy Regulator in 2020.
• However, with the acceleration of low emissions technologies being developed in Australia, coupled with the transition to net zero emissions by 2050, the use of fossil fuels has started to decline as Australia starts to shift to renewable energy to generate electricity instead (see renewable industry overview below).
• According to the State of the Energy Market 2021 Report:
  • over 3,700 MW of large-scale solar and wind generation capacity entered the NEM in 2020, largely contributed by projects in New South Wales and Victoria.
  • almost 2,500 MW of new capacity was installed across the NEM in 2020 as a result of rooftop solar photovoltaic (PV).
  • wind output has exceeded gas generation for an unprecedented first time.
• Despite the significant benefits the electricity market transition has to offer to consumers (if integrated efficiently into the power system), there is still some uncertainty surrounding the use of such technologies to provide a reliable electricity supply, particularly during periods when there is a lack of wind or sunshine.
• As renewable technology continues to expand and less reliance is placed on coal and gas powered generators to supply power output to the grid, transmission networks in South Australia, Tasmania and parts of Victoria and Queensland have experienced an imbalance of frequency shifts and voltage instability due to a shortage of system strength connected to the grid. The long-term risks associated with an unstable network means that renewable plants are unable to fully operate efficiently and creates another barrier for new plants to connect to the grid.
• The regulatory framework of the electricity sector across Australia is disaggregated between the east coast and the south-west coast.
• On the east coast of Australia there is retail competition through the National Energy Market. The NEM is connected by six major transmission interconnectors, which link the electricity networks of New South Wales, Queensland, South Australia, Tasmania and Victoria. The network consists of nearly one million kilometers of underground and overhead transmission and distribution lines/cables.
• However, because of their geographical isolation, the Northern Territory and Western Australia have their own electricity markets and are not connected to the NEM.
• Instead, Western Australia operates under the Wholesale Electricity Market and is governed by the Wholesale Electricity Market Rules due to its location in the South West Interconnected System.
• The Northern Territory on the other hand operates under the Interim Northern Territory Electricity Market and is governed by the System Control Technical Code, Electricity Retail Supply Code and the National Electricity Rules.
• There is a mix of State government ownership and private ownership of electricity infrastructure. Privatization of electricity assets owned by State governments has become politicized, receiving strong opposition from opponents of privatization including unions.  

Electricity laws

• The National Electricity Law contained in the Schedule of the National Electricity (South Australia) Act 1996 (SA) and associated regulations, underpins the regulatory framework for the NEM, which is managed by the Australian Energy Market Operator. Following the enactment of the National Electricity Law in South Australia, each of the other participating states in the NEM subsequently adopted the National Electricity Law by introducing legislation as a law of their own jurisdiction.
• Together, the National Electricity Rules and the National Electricity Code govern access to transmission and distribution networks and set out the market rules including market operations, power system security, network connection, access and pricing for services in the National Energy Market.
• Part IIIAA of the Competition and Consumer Act establishes the Australian Energy Regulator.
• The Australian Energy Market Commission Establishment Act establishes the Australian Energy Market Commission.
• The Offshore Electricity Infrastructure Act 2021 (Cth) (OEI Act) represents a significant development in Australia’s commitment to achieving net zero emissions, as it introduces a dedicated regulatory regime for offshore infrastructure and technologies (e.g. offshore wind farms or solar farms) proposed to be carried out in Commonwealth offshore areas. The OEI Act has been modelled on the existing offshore petroleum framework under the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (Cth) and will be similarly administered and regulated by the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) and the National Offshore Petroleum Titles Administrator (NOPTA).
• The OEI Act is supported by the Offshore Electricity Infrastructure (Regulatory Levies) Act 2021 (Cth), which was introduced to impose a levy on offshore electricity infrastructure license holders, or those engaging in offshore infrastructure activities in Commonwealth waters.
• The introduction of the Competition and Consumer (Industry Code – Electricity Retail) Regulations 2019 (Cth) (Code) regulates the cap on standing offer prices and the process in which prices and discounts must be advertised, published or offered. The Code only applies to retailers that supply electricity to small consumers in the applicable distribution regions of New South Wales, South Australia and south-east Queensland and is regulated by the Australian Competition and Consumer Commission (ACCC).

Electricity industry overview

• In 2020, 72.866 GWh of electricity (gross) was generated in Austria. Austria does not rely heavily on fossil fuels (accounting to approx. 17.8%). 81% of electricity is generated from renewable sources. Electricity generation is comprised of:
  • 62% from hydropower (2020 figures);
  • 14% from natural gas (2020 figures);
  • 9.3% from wind (2020 figures);
  • 6.0% from biogenic fuels (2020 figures);
  • 3.0% from coal (2020 figures);
  • and
  • 3.0% from solar (2020 figures);
  • 1.0 from oil (2020 figures); and
  • 1.0 from other fuels

(data retrieved from E-Control and Austrian Energy Agency)

• Electricity demand is expected to grow at 1.4% per annum until 2030. 

Electricity laws

• The main legal source for Austrian energy policy is the Federal Electricity Management and Organisation Act 2010 (Electricity Act 2010) which sets out the overall regulatory framework for the electricity industry. This aims to provide regulations for an equal, fair, consumer friendly and transparent energy market. Therefore, it regulates, among other things, the rights and duties of the market participants and especially their obligations to the consumers. The Electricity Act 2010 transposes relevant EU law, in particular Directive (EU) 2019/944 on common rules for the internal market for electricity.
• The Electricity Act is transposed and supplemented by the electricity acts of the federal states.
• To achieve its desired climate neutrality and its #mission2030 targets, Austria implemented in 2021 (and 2022 respectively) the so-called Renewable Expansion Act (EAG), which essentially transposes Directive (EU) 2018/2001 on the promotion of the use of energy from renewable sources, and is considered a central element to foster and develop the renewable energy sector in Austria.
• The competent regulatory authority for electricity and gas is Energie-Control Austria für die Regulierung der Elektrizitäts- und Erdgaswirtschaft (E-Control). 

Generation, distribution and transmission

• In 2001 the Austrian electricity market was fully liberalised, i.e. every consumer had the possibility to freely choose its electricity supplier (“full regulated third party access”). At the same time, Austria introduced the balance group model. The EU’s Third Energy Package was transposed into Austrian law by way of adoption of the new Electricity Act 2010. The reform included tightened requirements regarding the unbundling of the transmission and the distribution system operators, most notably the so-called ownership unbundling for TSOs with exceptions for existing TSOs, which had the possibility to unbundle either as Independent System Operator (ISO) or Independent Transmission Operator (ITO).
• Austrian Power Grid AG (APG) is the main TSO of the Austrian electricity transmission grid, responsible for the transmission system across eight of the nine Austrian states. APG is a 100% subsidiary of Verbund AG, however, APG is unbundled in accordance with the requirements for ITOs. APG is also acting as control area manager for the whole Austrian transmission system operator (including the transmission system in Vorarlberg).
• The transmission system in the western-most state, Vorarlberg, is operated by Vorarlberger Übertragungsnetz GmbH, which is ownership unbundled (however indirectly owned by the state of Vorarlberg).
• Additionally, to date there are 122 electricity distribution system operators (DSO) active in Austria. The main DSOs are the electricity companies owned by the federal states (Länder).
• The main generation companies in Austria are Verbund AG (51% state-owned), EVN AG (51% owned by the state of Lower Austria) and Wien Energie GmbH (indirectly owned by the City of Vienna).

Electricity industry overview 

In the past, Belgium was heavily dependent on coal for its electricity generation. As of 1990, however, the electricity generation units based on coal have been gradually replaced by electricity generation units based on gas. At present, 30% of the generated electricity is generated from gas.  

For the last 40 years, Belgium relied on nuclear energy for most of its electricity generation. For many years, almost 50% of the electricity produced in Belgium was produced by nuclear plants. In the past, this percentage was lower due to (both foreseen and unforeseen) outages. In this regard, it is noted that Belgium’s nuclear capacity will be phased-out by 2025. However, it cannot be ruled out that the current government will decide to keep certain nuclear facilities open beyond 2025.  

Notwithstanding the fact that Belgium has the smallest exclusive economic zone in the North Sea, its current offshore wind generation capacity amounts to 2.3 GW. By 2030, the federal government wishes to increase this number to 5.4 – 5.8 GW.  

Government plans  

The Belgian government introduced a Capacity Remuneration Mechanism (CRM) in order to safeguard the security of supply, taking into account the envisaged nuclear phase-out. This mechanism seeks to solve the so-called ‘missing money’ problem. Particularly, the CRM ensures that electrical capacity holders are remunerated for the costs that are not compensated by their revenues. This way, it avoids capacity holders choosing not to keep their capacity in the market or not to invest in new capacity.   

The first CRM auction (which is for the delivery period in 2025) took place in October 2021. The second CRM auction for this delivery period will take place in October 2024. 

Electricity laws 

The relevant electricity-related legislation is the following:  

• Federal 
  • Law of 29 April 1999 on the organisation of the electricity market. 
  • Royal Decree of 2 April 2003 on the licensing of the supply of electricity by intermediaries and on the rules of conduct applicable to them. 
• Flemish region
  • Decree of 8 May 2009 laying down general provisions regarding the energy policy. 
  • Implementing decree of 19 November 2010 laying down general provisions regarding the energy policy
• Brussels region 
  • Ordinance of 19 July 2001 on the organisation of the electricity market in the Brussels Capital Region.
  • Implementing decision of 18 July 2002 on the criteria and procedure for granting, renewing, transferring and withdrawing an electricity supply permit 
• Walloon region
  • Decree of 12 April 2001 on the organisation of the regional electricity market. 
  • Implementing decision of 21 March 2002 on the electricity supply licence.  

Generation, distribution and transmission 

• In Belgium, the major electricity producers are Engie Electrabel, EDF Luminus and EON.
• In the Flemish region, the distribution system operator is Fluvius. In the Walloon region, the distribution system operators are Ores, RESA, Rew, AIEG and AIESH. In the Brussels region, the distribution system operator is Sibelga. 
• The transmission system operator for electricity is Elia. 
• Every region has a regulatory authority for energy. On the federal level, the regulatory authority is the CREG. In the Flemish region, the regulatory authority is the VREG. In the Walloon region, the regulatory authority is the CWaPE. In the Brussels region, the regulatory authority is BRUGEL. 

The general legal framework for the Brazilian energy sector is established in the Brazilian Federal Constitution. According to the Federal Constitution, the government shall, directly or by means of authorization, concession or permission, promote the rendering of public services. 

Based on the above, since the late 1980s, the energy sector has experienced several restructurings, aiming to facilitate private investment and create sector security. 

The federal government has passed the following laws, which represent the main legal framework for the power market in Brazil: (i) Law No. 8,987/95 (Public Concessions Law); (ii) Law No. 9,074/95 (Power Concessions Law); (iii) Law No. 9,427/96 (Creation of ANEEL); (iv) Law No. 10,848/04 (Power Trading), amongst others. The sector is also heavily regulated by ANEEL, the agency responsible for sectorial oversight, which issues rules and resolutions applicable to the power sector and its agents. 

The development of energy projects in Brazil is subject to the granting of authorizations by the government. Depending on the nature and size of the project, the right to explore a resource or provide a power-related service (such as transmission and distribution) shall be awarded through public bidding procedures. 

The power trading market is divided into the regulated market and the free market. The first has the goal of providing power to distribution companies at a certain price by means of a public bidding procedure. Captive consumers (natural persons and small businesses) are also included in this context, since they are only allowed to buy electricity from the local distribution company. In the free market, in contrast, power generators, traders and free consumers are allowed to buy and sell power at market conditions, being the contractual terms fully negotiable by the parties. In order to be a free consumer, such consumer must have a power demand of at least 1 MW, as of January 2022, being such amount reduced to 500kW as of January 2023. Nevertheless, the sector is currently discussing further opening of the free market, which could enable all high-tension consumers to access the free market by as early as 2024 and a complete opening, to all consumers, in the following years. 

According to ANEEL, Brazil has over 17,000 operational power plants, with more than 183 GW in authorized capacity. When considering projects under development and construction, Brazil reaches the figure of over 270 GW in authorized capacity, generated by almost 20,000 power plants.¹

The country’s generation capacity in 2021 was divided into the following sources²:

• Hydro – 55,3%
• Natural gas – 13,2%
• Wind – 11%
• Biomass – 7,9%
• Oil products – 2,8%
• Coal – 2,7%
• Solar – 2,6%
• Other – 2,3%
• Nuclear – 2,2%

1. See ANEEL’s Generation Information System (SIGA)
2. See Electric Energy Statistic Yearbook 2022

Electricity industry overview 

• In 2020, 634 million MWh of electricity was generated in Canada. Sixty-seven percent of Canada’s electricity is generated from renewable sources and 82% from non-GHG emitting sources.
• Canada is estimated to be the sixth-largest electricity producer in the world, representing 2% of the world’s total production. It produced 641 TWh in 2018. Electricity generation is comprised of:‎
  • ‎60% from hydropower (2018 figures)‎
  • ‎11% from gas/oil/others (2018 figures)
  • ‎14.8% from nuclear (2018 figures)‎
  • ‎5.1% from wind (2018 figures)
  • ‎7.4% from coal (2018 figures)
  • 9.4% from natural gas (2018 figures)
  • ‎1.3% from petroleum (2018 figures)
  • ‎1.7% from biomass (2018 figures)‎

0.6% from solar (2018 figures)Electricity demand is expected to increase by 45% from 2019 to 2050.  

Electricity laws

• Electricity production is generally regulated at the provincial level in Canada. Each province and territory has its own electricity market structure and regulatory framework. 

Ontario

• Electricity Restructuring Act creates the electricity market framework in Ontario.
• Independent Electricity System Operator (IESO) administers, monitors and directs the Ontario electricity market. 
• Transmission and distribution - A formerly provincially-owned corporation that is now privatized, Hydro One, owns most transmission assets in Ontario. Great Lakes Power, Canadian Niagara Power and Five Nations Energy are other transmitters. 
• Ontario’s Bill 276 was introduced in April 2021 to assist the province’s economic breakdown due to the ‎COVID-19 pandemic. This bill would bypass the current requirement that the Ontario Energy Board must ‎consider the promotion of renewable energy in approving an electricity transmission project.

Alberta 

• Hydro and Electric Energy Act allows the Alberta Utilities Commission (AUC) to approve new electric generation facility construction. 
• The wholesale market is deregulated.  Electricity is bought and sold through a power pool operated by the Alberta Electric System Operator (AESO), which conducts an hourly energy-only auction. 
• There are two major transmission utilities in the province, AltaLink in the south and ATCO in the north, each essentially having a monopoly in its territory.

Distribution is through a variety of local distribution utilities each having a monopoly in its service area. 

Distribution and transmission utilities generally provide wires service only and not commodities.  

Deregulated retailers provide electricity purchased from generators, wholesalers or from the AESO at auction to end users. 

British Columbia 

• Provincial policies have been created to encourage the development of renewable energy through legislation such as the British Columbia Clean Energy Act.
• The British Columbia Utilities Commission (BCUC) is the provincial regulatory agency.  
• Transmission and distribution - Private corporations or Independent Power Producers’ (IPP) roles in electricity generation has rapidly increased. BC Hydro, pursuant to the Clean Energy Act, buys electricity from IPPs through a tender bidding process.  

Quebec

• Under the Hydro-Quebec Act, Hydro-Quebec (HQ) is a provincial Crown electric utility corporation that is the only reseller of electricity. 
• Transmission and distribution - Contracts are awarded through a bidding process. 
• The Canadian federal government (through the Canadian Energy Regulator) has extremely limited jurisdiction in respect of electricity imports and exports and infrastructure that crosses provincial and national borders.

Electricity industry overview (summary and productions rates) 

• In terms of energy generation, as of June 2022, Chile had an installed capacity of 32.253 MW with 36.6% of the installed capacity corresponding to non-conventional renewable sources (such as solar, wind, geothermal, mini hydro, among others). Thus, according to the report for the month of June 2022, the updated monthly generation percentage is as follows:
  • 20.7% from hydropower;
  • 11.5% from solar;
  • 8.8% from wind;
  • 0.3% geothermal;
  • 0.3% from thermosolar;
  • 4.5% from diesel;
  • 28.6% from coal;
  • 22.8% from natural gas; and
  • 2.6% from other thermal. 
• It is projected that by 2050, at least 90% of the installed capacity in Chile will be renewable energy sources.
• The main challenges are transmission capabilities and storage, implementation of the decarbonization process and the increase in the percentage of generation based on non-conventional renewable energies. 

Projects, strategies and governments plans

• The National Energy Policy 2050, the Green Hydrogen Agenda, a project to promote unbundling of the distribution segment, storage and projects related to improve transmission capabilities, such the recently awarded Kimal - Lo Aguirre 1,500 km transmission line, are part of the strategy and government plans. In addition, the distributed generation means market has been rapidly developed and increased in regulation in the past years. 

Electricity laws

• Since 1974, a process of decentralization and privatization of the electricity sector has been underway in Chile, and since the 1980s, policies have been applied that tend to grant significant participation to the private sector and make the electricity market more efficient.
• The general regulatory framework is comprised by the General Electric Services Law of 1981, currently contained in DFL 4/2018 (LGSE), which has undergone several modifications that have made it possible to improve the regulation of the different sectors of the electricity market (generation, transmission, distribution and free and regulated customers), with technical coordination carried out by the Independent Coordinator of the National Electric System (CISEN). It also contains provisions related to renewable energies.
• From the regulator's point of view, the laws that have provided the sector with a public law structure are mainly DL 2224/1978, which created the Ministry of Energy and the National Energy Commission, as well as Law No. 18,410, which created the Superintendence of Electricity and Fuels. Thus, while the Ministry of Energy is in charge of the public policy of the sector, the National Energy Commission (CNE) is the technical body of the authority in matters of tariffs and other related matters and the Superintendency (SEC) is in charge of the supervision and imposition of sanctions, if applicable. To this must be added the role played by the Panel of Experts (regulated in the LGSE) in the resolution of discrepancies between different actors in the electricity market and the CISEN in the coordination of the electricity system.
• In addition, there are other regulations which are of great importance for the development of the industry, such as the Regulation of the LGSE Decree 88/2019, which contains the Regulation of the Means of Small Scale Generation and Decree 37/2019 (enacted in 2021) that regulates transmission systems and its planning, among others.
• Technical regulations governing the installation, operation and maintenance of electrical facilities are mainly in the decrees of the Ministry of Energy, as well as the Ministry of Economy, which regulate the implementation of the Electricity Law and similar regulations; but also the technical provisions issued by the CNE, such as the Technical Standard with Safety Requirements and Quality of Service dictated by the National Electric Coordinator, which ensures the coordination of the electrical system.
• Other relevant regulations include the law that regulates the payments for residential generators, the regulation that created a subsidy for transmission lines in order to facilitate access to non-conventional renewable energy (NCRE) projects.
• Finally, there are also laws on other matters that have a direct impact on electricity regulation, such as Law No. 19,300, on General Bases of the Environment, and DL 211/1973, which establishes Norms for the Defense of Free Competition. 

Generation, distribution and transmission

• The Chilean electricity sector is a concentrated market in all segments (i.e. generation, transmission and distribution).
• In the generation sector, four private companies contribute up to 55.7% of the installed capacity of the total generation of the electrical system.
• Regarding the transmission sector: the transmission system is divided into a national transmission system, a transmission system for development poles, a zonal transmission system and a dedicated transmission system, each of which is a natural monopoly by law. The transmission sector is also concentrated mainly in Transelec S.A., Transmisora Eléctrica del Norte S.A. and Interchile S.A.
• Regarding distribution: due to its monopolist nature and also to the existence of large-scale economies, this activity is organized around concessionary companies of the distribution public service such as Compañía General de Electricidad S.A., Enel Distribución Chile S.A., Chilquinta Energía S.A., Sociedad Austral de Electricidad S.A. and Compañía Eléctrica del Litoral.

 

Electricity laws

• From July 1985 to March 2014, the electricity sector was legally regulated by the Law No. 85-583 of July 29, 1985, which granted the State a monopoly on the transmission, distribution, export and import of electricity, except for production.
• In 1990, the state granted a concession agreement to a private operator, Compagnie d’Electricité Ivoirienne (CIE) to carry out activities subject to the monopoly throughout the national territory and to operate the thermal and hydroelectric generation plants owned by the state, thus succeeding to the former national electricity company, Energie Electrique de Côte d'Ivoire (EECI).
• In December 1998, the state carried out an institutional reform to better control its responsibilities in the sector. The EECI was liquidated and three new state companies were created:̶
  • The National Authority for the Regulation of the Electricity Sector (ANARE)̶
  • Société de Gestion du Patrimoine du secteur de l'Electricité (SOGEPE)
  • Société d'Opération Ivoirienne d'Electricité (SOPIE)
• In December 2011, the state undertook a new reform that led to the early dissolution of SOGEPE and SOPIE, and the creation of a state-owned company under the name of Société des Energies de Côte d'Ivoire abbreviated as CI-ENERGIES, which took over all activities of the two dissolved structures.
• In 2014, law n° 2014-132 of March 24, 2014, on the Electricity Code (the New Electricity Law), which provides a comprehensive framework for the generation, transmission, distribution, sale, import and export of electricity, was enacted. Under this new law, the powers of the electricity regulatory authorities have been strengthened, including the development of alternative and renewable energies. Another innovation of the new law is the criminalisation of theft of electricity and other fraudulent acts that cause many technological and commercial losses in the sector.
• On October 12, 2016, decree n°2016-785 on the organization and operation of the National Regulatory Authority of the Electricity Sector of Côte d'Ivoire creates ANARE-CI following the dissolution of ANARE.
• On November 22, 2017, Decree 2017-773 amending the name of the company Energies Côte d'Ivoire and Articles 1, 2 and 13 of Decree No. 2011-472 of December 21, 2011, creating the state-owned company called Energies de Côte d'Ivoire, extends the purpose of CI-ENERGIES, in particular to the conversion of any source of energy, including new and renewable energies, into electrical energy and the transfer for consideration of the electrical energy thus produced. 

Generation, distribution and transmission 

• According to article 6 of the New Electricity Law: “The activities of generation, transmission, distribution, import, export and marketing of electrical energy do not constitute a state monopoly. The dispatching activities constitute a state monopoly that can be conceded to a single operator.”
• Côte d'Ivoire has four primary energy sources: hydroelectricity, oil, natural gas and biomass. 

The energy mix in Côte d'Ivoire is mainly thermal. There are four major thermal power plants. The main source is natural gas. But the national production of gas in Côte d'Ivoire does not meet the national demand of the thermal power plants. HVO (Heavy Fuel Oil) and DDO (Distillate Diesel Oil) are therefore the back-up fuels, and many projects to diversify the energy mix are underway. 

Three private electricity companies (AGGREKO, AZITO Energie, CIPREL) manage and operate thermal power plants in the southwest region and in the suburbs of Abidjan as independent power producers (IPP). AZITO Energie and CIPREL have entered into a BOOT (Build-Own-Operate Transfer) concession agreement with the government, while AGREKO has entered into a lease agreement. The BOOT contract provides for a transfer of possession to the state after 20 years.

• With respect to electricity transmission and distribution activities, although the state owns the assets, only CIE (Compagnie Ivoirienne d'Électricité), which holds a concession agreement granted by the state, has a commercial monopoly on the supply of electricity to individual customers and on import-export. CIE also operates a thermal power plant (CIE-VRIDI), six hydroelectric power plants (Ayame 1, Ayame 2, Faye, Kossoue, Buyo, Taabo) and independent isolated power plants. CIE began operations as a private company in 1990 with a 15-year concession contract and this contract was extended for another 15 years from 2005 to 2020.

Electricity industry overview

• In 2020, 81,427 GWh of electricity was generated in the Czech Republic. The Czech Republic still relies heavily on fossil fuels and nuclear power plants. Only 12% of its electricity is generated from renewable sources. Electricity generation in general comprises of:
  • 43,2% from coal and coal products (2020 figures)
  • 36,9% from nuclear power plants (2020 figures)
  • 12% from renewable sources (2020 figures)
  • 7% from gas (2020 figures)
  • 2% from other sources (2020 figures) 

Electricity demand is expected to grow at 1% per annum until 2030. 

Electricity laws

• The electricity laws in the Czech Republic are in accordance with EU directives:
  • The Energy Act (2000) (Energetický zákon – Act No. 458/2000 Coll.) is the fundamental act for energy sector. The act regulates business in energy sector, licenses and the conditions for granting them.
  • The Energy Management Act (2000) (Zákon o hospodaření energií – Act No. 406/2000 Coll.) regulates the efficiency of energy use and some obligations of the natural and legal person while managing the energy.
  • The Act on Supported Energy Sources (2012) (Zákon o podporovaných zdrojích energie – Act No. 165/2012 Coll.) supports electricity and heat from renewable energy sources.
• The Czech Ministry of Industry and Trade has stipulated that renewable energy sources will be important in the future and supports these energy sources: for example, solar energy. 

Generation, distribution and transmission

• The company ČEZ produces about three-quarters of all electricity in the Czech Republic. Other smaller producers are, for example, Severní energetická and Sokolovská uhelná.
• The electrical transmission system carries electricity from producers to consumers. This system is operated by the state company ČEPS. ČEPS ensures the regulation of the system by its own means and by remote control (for example, by hydroelectric and pumped storage power plants). 

The Czech Republic’s energy and climate aims are to:

• Achieve a 22% share of renewable energy in gross final energy consumption by 2030.
• Achieve a primary energy consumption of 1,735 PJ, a final energy consumption of 990 PJ and a gross domestic product energy intensity of 0.157 MJ/cap in 2030.
• Increase the level of diversification of the energy mix.
• Energy Security – maintain import dependency at a level of no more than 65% by 2030 and no more than 70% by 2040. 

Hydrogen Strategy of the Czech Republic 2021

The aim of the strategy is to accelerate the development and subsequent implementation of economically available hydrogen technologies. In its second stage, the strategy envisages connecting electrolyzers to large solar or wind power plants under construction.

Electricity industry overview

In 2019, 29 tWh of electricity was generated in Denmark, and Denmark imported 5.5 tWh of electricity. In 2030, it’s expected that 97% of the electricity production in Denmark is generated from renewable sources. Electricity generation is comprised of:

• 0.78% from biogas (August 2021 figures)
• 0.53% from oil (August 2021 figures)
• 50.04% from wind (August 2021 figures)
• 10.61% from coal (August 2021 figures)
• 5.08% from biomass (August 2021 figures)
• 4.05% from waste heat (August 2021 figures)
• 6.23% from solar (August 2021 figures)

Electricity demand is expected to grow from 35 tWh in 2019 to 71 tWh in 2030. 

Electricity laws

• The Danish Electricity Supply Act is the primary Danish legislation on electricity. The purpose of the legislation is to improve competition in the electricity market, enhance security of supply, ensure consumer protection, and increase electricity production.
• The Danish Renewable Energy Act governs renewable energy projects such as solar and onshore wind and has various mechanisms to compensate neighbors.
• The Danish Energy Agency is the regulator on all matters pertaining to energy production, transmission and distribution.
• The Energinet Act establishes Energinet as the sole Transmission System Operator (TSO) in Denmark. Energinet’s purpose is to own, operate and develop the overall energy infrastructure in Denmark and manage related tasks, thus contributing to the development of a climate-neutral energy supply. 

Generation, distribution, and transmission

• In Denmark, electricity is generated by Ørsted and a number of local and regional producers and by a relatively large number of new businesses focused on renewable energy only.
• The Danish grid was initially established as a downstream grid transmitting power from large power plants to consumers. With the development of onshore wind and solar power, the upstream capacity from wind farms and solar parks has in some areas of the country been constrained and development of additional capacity today needs to be factored in when developing new sites.
• Renewables projects obtain grid connection through the grid companies or alternatively for larger projects directly through the Danish TSO, Energinet.

Electricity industry overview

• In 2021, 522.9 TWh of electricity was generated in France, a 2.7% drop compared to 2019.
• Electricity generation consisted of:

  • 69% from nuclear power

  • 12% from hydropower

  • 7% from wind power

  • 7 % from fossil fuels

  • 3% from solar power

  • 2% from bioenergy

• Nuclear generation and fossil fuel thermal generation were respectively 4% (18.8 TWh) and 8% (3.4 TWh) lower than in 2019. This sharp drop is in the context of the economic crisis due to the COVID-19 pandemic, which was characterized by a drop in consumption and a deterioration in the availability of nuclear power generation.
• A 0.6% growth per annum is expected in the electricity demand until 2030.

Electricity laws

• European directives 96/92/EC, 2003/54/EC and 2009/72/EC concerning common rules for the internal market in electricity were transposed into French law by:
  • law 2000-108 of February 10, 2000, on the public service of electricity
  • law 2003-8 of January 3, 2003, on gas and electricity markets and the public service of energy
  • law 2004-803 of August 9, 2004, on electricity and the public service of gas and electricity and gas companies
  • law 2006-1537 of December 7, 2006, governing the energy sector
  • ordinance 2011-504 of May 9, 2011.
• The other main legislation that applies:
  • law 2010-1488 of December 7, 2010, on the new organization of the electricity market
  • law 2015-992 of August 17, 2015, on energy transition for green growth
  • law 2019-1147 of November 8, 2019, on energy and climate
  • decree 2020-456 of April 21, 2020, on the multi-year program for energy
  • law 2021-1104 of August 22, 2021, on climate and resilience
• Since 2011, the main measures relating to the energy sector are consolidated in the Energy Code.
• EDF is the largest electricity generator and retailer in France. A former fully state-owned company, it was transformed in 2004 into a joint stock company operating under private commercial law and which is listed on the Euronext Paris stock market. In July 2022, the French State announced its decision to nationalize EDF and intends to bring it back into full state ownership by the end of October 2022.
• The electricity regulations are implemented by the minister responsible for energy, the Directorate General for Energy and Climate (Direction générale de l’énergie et du climat or “DGEC”) and other national authorities.
• The minister responsible for energy is currently the Minister for Energy Transition. The minister has certain prerogatives in terms of determining electricity tariffs, control, and penalties. More specifically, said minister has a right of access to the accounts of electricity undertakings and is also vested with powers of investigation and inspection. Competence in relation to raw materials and onshore mining activities is shared between the Minister for Energy Transition and the Minister for Industry.
• The DGEC is the ministerial department in charge of all energy matters. It determines and implements the energy policy, controls the performance of the public service missions in the energy field, and implements the state’s policy on renewable and nuclear energy.
• The energy markets are regulated by the Energy Regulation Commission (Commission de régulation de l’énergie or CRE). The CRE is an independent administrative authority. The CRE has both an advisory role (with powers to make proposals and give opinions) and a decision-making role (with approval and regulatory powers).

Generation

• Three companies generate almost all non-imported electricity: EDF, Engie and Uniper.
• With total installed power of 86.4 GW in mainland France by December 31, 2021, EDF has the largest generation fleet in Europe. It owns and operates 80% of all generation capacity in France.

Distribution and transmission

• Two of EDF’s subsidiaries, Réseau de transport d’électricité (RTE) and Enedis, are respectively in charge of transmission and distribution networks. Other historical distribution companies operate regionally.
• The French electricity transmission network is the largest transmission network in Europe, with more than 100,000 km of high- and extra-high-voltage circuits and 47 cross-border lines. The transmission network is operated by RTE under a concession agreement entered into with the state due to expire on December 31, 2051.
• Local authorities own electricity distribution networks and enter into concession agreements for their development and operation as well as electricity distribution. Enedis manages most of the electricity distribution activities in France. It operates a network of 1.4 million km and distributes 95% of the volume of electricity distributed in France.
• Energy production sites with a capacity of less than 12 MW are directly connected to the grid through the entities distributing power to end-users.
• When energy production sites have a capacity of more than 12 MW, they are connected to the grid through the entity responsible for power transmission (RTE).
• Network operators must guarantee access to the public transmission and distribution networks.
• Access to the networks is ensured through standard form agreements that are entered into between the transmission and distribution network operators and the users of these networks.
• Regulated tariffs for transmission and distribution networks and for supply are set by the CRE.

Supply

• Electricity supply has been fully open to competition since July 1, 2007, when the right to choose an electricity supplier (a right previously enjoyed only by the largest electricity consumers) was extended to all customers, including residential customers.
• EDF’s main competitors on the electricity supply side are Total Direct Energie, Engie, Alpiq, Uniper and Enel.
• As of March 31, 2022, alternative suppliers held a 31% market share.

Government plans

• France has an ambitious objective: to become Europe’s first major decarbonized economy by achieving carbon neutrality by 2050. Reducing the impact of France’s economic activity on the environment, the France Relance recovery plan launched in 2020 committed EUR30 billion to speed up the ecological transition. According to this plan, France will notably support the thermal renovation of buildings, the decarbonization of industry, green hydrogen (with a EUR 9 billion investment from the State by 2030) and cleaner transport. In particular, to be at the cutting-edge of renewable hydrogen production and low-carbon technologies, France will support projects led by companies across the country to encourage the emergence of French hydrogen solutions. It will set up a mechanism to support hydrogen produced by water electrolysis and will create an Important Project of Common European Interest to support industrialization in France and develop projects.
• In addition, in October 2021, the authorities announced a new investment plan called “France 2030.” The plan, worth EUR30 billion until 2027, would complement France Relance and especially target further investment in the energy sector (EUR8 billion). Pursuant to this plan, France aims at becoming a leader in green hydrogen and plans massive investments for industrial decarbonization through nuclear power (particularly development of small modular reactors) and renewable energy.

Electricity industry overview

Generation

Ghana’s power supply is primarily sourced from hydro-electricity, thermal energy fueled by crude oil, natural gas and diesel as well as renewable sources such as solar. Ghana relies heavily on fossil fuels for power generation. The total installed capacity according to the 2021 published energy statistics produced by the energy commission stands at 5481 MW consisting of:

• Hydro power - 36.2%
• Thermal power - 63.6%
• Renewables - 0.3% 

However, despite this large outlay of power, the dependable capacity is 4,975 MW.

According to Ghana’s Energy Commission, final energy consumption increased by 4.3% in 2019. Peak electricity demand for 2019 was 2804 MW, well under Ghana’s total installed capacity.

Ghana also exports power to Togo, Benin and Burkina Faso due to the country’s large installed capacity. Ghana has been a net exporter of electricity for three consecutive years. The net export registered in 2020 was the highest, increasing by 33.8% (1743 MW) representing imports of 58 MW and exports of 1801 MW.

As at 2020, it is estimated that 85% of the total population of Ghana have access to electricity. This makes Ghana one of the African countries that are most likely to achieve 100% universal access by 2030.

Hydro

• Hydroelectricity is generated from three power plants: the Akosombo and Kpong Generation Stations, operated by the state-owned Volta River Authority (VRA); and the Bui Generation Station operated by the state-owned Bui Power Authority. Thermal Power is generated from a combination of private and public sector outputs by VRA and a variety of independent power producers (IPPs). Three state-owned and four privately-owned plants generate energy from the eastern enclave of the National Interconnected Transmission System (“national grid”) while two state-owned and three privately owned plants generate power from the western enclave of the national grid.
• According to 2021 published energy statistics, the installed hydro power generation capacity is 1,584 MW with a dependable capacity of 1,400 MW. 

Thermal

Ghana’s installed capacity is dominated by thermal energy. Ghana’s thermal dependency is due to high demand, unpredictable water levels in domestic dams, discovery of indigenous oil and gas, and the introduction of the West African Gas Pipeline. According to the 2021 published energy statistics, Ghana’s thermal energy installed capacity stands at 3649 MW with a dependable capacity of 3480.6 MW.

Ghana currently has a number of power stations that generate electricity from thermal energy:

• Takoradi Thermal Power station (TAPCO)– 330 MW - Commissioned in 2000, runs on Gas/LCO
• TICO (T2) – 340 MW - Commissioned in 2001, runs on Gas/LCO
• Tema Thermal 1 Plant (TT1PP) – 110 MW - Commissioned in 2009, runs on Gas/LCO
• Tema Thermal 2 Plant (TT2PP) 87 MW - Commissioned in 2010, runs on Gas/LCO
• Kpone Thermal Power Station (KTPS) – 220 MW - Commissioned in 2016, runs on Gas/Diesel
• Kpone Thermal Power Station II – 340 MW - Commissioned in 2017, runs on Gas/Diesel/Crude Oil. This is the biggest independent power plant in Africa to date
• Ameri Power Plant – 250 MW - Commissioned in 2016, runs on Gas

There are also plants such as Sunon Asogli Power (Ghana) Ltd, Karpowership, Amandi, AKSA, Cenpower, Earlypower and Genser.

In 2019 Ghana procured 63% of gas from its own offshore fields and another 37% via the West African Gas Pipeline. Gas supply reliability is expected to improve again when the Tema LNG project is completed.

Solar

• Solar energy makes up largest fraction of the total power generated from renewable sources in Ghana. Steps are however being taken to diversify and increase power generation from solar and wind energy. The government has committed to increasing the proportion of non-hydro renewable energy in the national energy generation mix to 1363.63 MW and to accumulating carbon savings of about 1 million tons of CO₂ by 2030 through the implementation of a Renewable Energy Master Plan which will be dependent on private sector investment.  

Electricity laws in Ghana

Transmission

• Transmission of power is the sole responsibility of the Ghana Grid Company which was established in 2006, in accordance with the Energy Commission Act, 1997 (Act 541) and the Volta River Development (Amendment) Act 2005 (Act 692) which provide for the establishment and exclusive operation of the National Interconnected Transmission System by an independent public utility and the separation of transmission functions of the Volta River Authority (VRA) from its other activities within the framework of the Power Sector Reforms.
• Government through the Ministry of Energy is embarking on major projects aimed at addressing transmission challenges through progressive replacement of over aged and obsolete equipment and reinforcement of others including the construction of 161 Kv and 330 Kv Transmission lines, construction of new substations across the country, expansion of some existing substations and installation of capacity banks. 

Distribution

• Electricity distribution in Ghana is carried out by three main distribution utilities, two state-owned and one private sector operated.
• The Electricity Company of Ghana, the largest distribution company, is a limited liability company wholly owned by the government of Ghana. ECG is currently responsible for distribution and supply of electricity in six political/administrative regions in southern Ghana namely, Ashanti, Central, Eastern, Greater Accra, Volta and Western Region.
• Prior to reforms in Ghana’s power sector in 1980s, ECG was responsible for the distribution of power in the whole of the country. In 1987, the Northern Electricity Department (NEDCo) of the VRA was charged with the distribution of electricity to Brong-Ahafo, Northern, Upper East and Upper West regions of Ghana and started with an initial load of about 10 MW with customer population of about 12,000. The network has grown extensively over the years mainly as a result of the various electrification programs of government. NEDCo has since 2012 been established as a subsidiary of VRA.
• Enclave power company Ltd (EPC) is the only privately-owned electricity distribution company operating in the Tema Free Zones Enclave in the Greater Accra Region. EPC has about 50 industrial customers. There is an effort to expand private participation in distribution and enhance supply reliability through the implementation of the compact II with the millennium challenge corporation (MCC) of the United States of America. 

Access to electricity

• The National Electrification Scheme (NES) was instituted in 1989 with the policy objective of ensuring that all parts of the country are provided with reliable electricity supply by 2020. At the commencement of the NES in 1990, accessibility to electricity supply was estimated at about 20%. Ghana has since achieved an enviable record of having the highest electricity access rate in Sub-Saharan Africa. The national average access rate is currently at 83.24% and to attain universal access by 2020.

Electricity industry overview

• Electricity in Hong Kong is provided by two privately owned companies, CLP Power Hong Kong Limited (CLP) and The Hongkong Electric Company Limited (HKE).
• CLP supplies electricity to Kowloon and the New Territories. Electricity is generated by three power stations: Castle Peak (4108 MW), Black Point (3175 MW) and Penny’s Bay (300 MW), with a total installed capacity of 7583 MW. CLP has also contracted to purchase about 70% (on a temporary basis until 2023) of the power generated from the two 984 MW pressurised water reactors in the Guangdong Daya Bay Nuclear Power station. It also has the right to use 50% of the 1200 MW capacity of Phase 1 of the Guangzhou Pumped Storage Power Station at Conghua.
• HKE supplies electricity to Hong Kong Island, Ap Lei Chau and Lamma Island. Electricity is generated by the Lamma Power Station, which has a total installed capacity of 3637 MW at the end of 2020.
• Between 2009 to 2020, electricity generation in Hong Kong has remained around the level of 35 to 40 TWh per year. The volume of electricity imported since 2008 has increased, while the volume of coal imported has decreased. This is due to the fact that Hong Kong is cutting down reliance on fossil fuels. 

Electricity laws

• The regulation of the electricity market is exercised through the Scheme of Control Agreements entered into between the Government of Hong Kong and CLP and HKE, respectively. The Scheme of Control Agreements sets out, among other things, the rights and obligations of the power companies, the electricity-related financial affairs of the power companies as well as their reliability and environmental performance in providing electricity. The current Scheme of Control Agreements will expire on 31 December 2033.
• The Electricity Ordinance (Cap. 406) regulates the safe supply of electricity and the safety of household electrical products. Among other things, it covers the registration of generating facilities, contractors and workers for electrical installations, wiring installation standards and safe distribution and use of electricity.
• The Electrical Products (Safety) Regulation was enacted in 1997 and its main provisions, including specified safety requirements for household electrical products, came into effect in May 1998. The remaining provisions concerning certificates of safety compliance requirements commenced operation in December 2000.
• The Electricity Supply Lines (Protection) Regulation was enacted in April 2000 to deter damage to underground electricity cables and overhead electricity lines. It commenced operation on 1 April 2001.

In 2020, Hungary generated 34.9 TWh of electricity and used 46.6 TWh, which means Hungary heavily relies on import. 17% of electricity is generated from renewable sources. The biggest electricity generator is the Paks Nuclear Power Plant, the only nuclear plant in the country, with 46% share in electricity generation. The volume of power generation was 3.21% higher and the consumption was 0.32 % higher in 2020 than in 2019.

The electricity generation comprises of the following primer sources (2020 figures):

• 46% – nuclear power
• 26% – gas
• 11% – coal
• 17% – renewable, of which:
  • 7% solar
  • 4% biomass
  • 2% wind
  • 1% hydropower
  • 1% waste
  • 1% biogas
  • 1% other

The Hungarian electricity sector was rather different in the 1990's than it is today. The power plants were privatized in 1995 and the generated electricity was bought by the state owned MVM – being the wholesale buyer – based on long term electricity purchase agreements. As Hungary was preparing to join the European Union, this system had to be changed.

In the 2000s, the liberalization of the Hungarian electricity market began based on Directive 96/92/EC of the European Parliament and of the Council of 19 December 1996 concerning common rules for the internal market in electricity. The liberalization was performed with unbundling, which means that activities, which can be performed in competitive circumstances (generation and retail) shall be performed this way, while other activities (transmission and distribution) were still left at natural monopolies.

The TSO of the Hungarian electricity network is MAVIR Zrt. MAVIR is operating in accordance with the ITO (Independent Transmission Operator) model, thereby MAVIR is the owner and operator of the transmission network within MVM Group, a vertically integrated electricity corporation. The TSO has the following responsibilities:

• provide for the reliable, efficient and secure operation of the Hungarian electricity;
• controls and augments the assets of the transmission system, performs all renewal, maintenance and development required for a proper and reliable supply;
• ensures an undisturbed operation and further extension of the electricity market and of the balancing group system supporting the market, and ensures access for system users on equal terms;
• synchronizes the operation of the Hungarian electricity system with the neighbouring systems;
• coordinates professional international cooperation activities;
• prepares the network development strategy and puts forward proposals for the development of the generation pool.

In Hungary, there are 6 electricity Distribution System Operators, which work regionally in the country.

In 2020, there were 12 power plants in operation with the capacity of 50MW or above, furthermore between 0,5 MW and 50 MW capacity, there were additional 343 power plant units.

Electricity laws

• EU Regulations, Directives
• Act LXXXVI of 2007 on electric energy
• Government Decree No. 273/2007 (X. 19.) on the implementation of certain provisions of Act LXXXVI of 2007 on Electricity (Vhr.)
• Government Decree No. 299/2017 (X. 17.) on the mandatory take-over and premium subsidy for electricity produced from renewable energy sources
• Government Decree No. 389/2007. (XII. 23.) on the mandatory take-over and purchase price of electricity produced from renewable energy sources or from waste and electricity produced from cogeneration
• Decisions of the Hungarian Energy and Public Utility Regulatory Authority (HEA)
• Several other governmental, ministerial and HEA decrees
• Act LIV of 2013 on the implementation of utility cost reduction

Electricity industry overview

• Electricity production in Italy is based on the use of non-renewable energy sources (fossil fuels such as natural gas, coal and oil, mostly imported from abroad) and increasingly on renewable sources (such as geothermal energy, hydroelectricity, wind energy, biomass and solar energy). The remaining electricity requirements are met by purchasing electricity from abroad, transporting it into the country via power lines and distributing it through the transmission and distribution networks.
• Electricity generation in Italy is comprised of (2021 figures):
  • 46% from gas
  • 20% from hydroelectric
  • 9% from wind
  • 9% from photovoltaic
  • 5% from coal
  • 3% from biomass
  • 2% from geothermal
  • 7% from other
• In 2021, electricity demand in Italy was 30.3 billion kWh, 38% of which was covered by renewables.
• In accordance with the data published by Terna S.p.a., in 2022 the electricity demand (214.970 GWh) is increasing compared to the same period in 2021 (+2%) and compared to 2020 (+8.9%). In August 2022, the electricity demand was met for 54.8% of the production from non-renewable energy sources, and for 34.5% from renewable energy sources (and the remainder from foreign).
• The main issues in the Italian electricity sector relate to high costs, mainly due to the extensive use of gas, which is one of the most expensive sources, and strong dependence on foreign countries. 

Electricity laws

• Law No. 481/1995 established the Electricity Authority for the first time at the beginning of the liberalization of the electricity market. The Authority was defined as an independent body with powers to regulate and control the market. The government assigned the Authority functions of protecting the interests of consumers, promoting both competition in the energy market and the efficiency and diffusion of quality services. Subsequently, the government assigned wider tasks and objectives to the Authority, including gas and the water network within its sphere of control and, recently, also the waste cycle.
• Law No. 239/2004 introduced the reorganization of the energy sector and delegated to the government the reorganization of the provisions in force concerning energy.
• Legislative Decree 206/2005 (Consumer Code) also includes contracts concerning the supply of electricity and gas, stipulated online and off-premises. The competent authority responsible for monitoring compliance with the rules of the Consumer Code is the AGCM, the Italian Competition Authority.
• Legislative Decree no. 210/2021, in implementation of the EU Directive 2019/944 concerning common rules for the internal market in electricity, inter alia, provides for the regulation of modalities for the participation and energy sharing, the definition of active customers, the definition of the rights of final customers and active customers (e.g., billing and billing information, right to switch supplier contracts with dynamic electricity pricing, smart systems and right to smart meter, aggregation contracts), the individuation of the conditions for citizens' energy communities. 

Generation, distribution and transmission

• The Electricity Market or Power Exchange or IPEX (Italian Power Exchange) was established in Italy on April 1, 2004, following the approval by the government and the Electricity and Gas Authority of the measures implementing Legislative Decree no. 79/99 (the Bersani Decree), which implemented the structural reform of the electricity sector. Until that moment, in fact, the energy monopoly was in the hands of a single company: Enel. The Bersani Decree gave way to the free electricity market in which every operator in the sector can decide to produce electricity and resell it. Today, the Italian energy market can be configured as a real supply chain in which various players such as electricity suppliers or distribution companies operate.
• Before the Bersani Decree, the distribution and supply of electricity converged in the same entity. The liberalization of the market, on the other hand, has separated these two figures, allowing companies to deal with one or the other sector. Electricity distribution is entrusted to the electricity distributor, who transports electricity from the transmission network. The end customer has no relationship with these companies and cannot choose their local distributor as this is determined by tenders issued by local authorities.
• Until few years ago, the difference between distributor and supplier was not very clear because there were companies that dealt with both sectors. In 2015, a clear division of roles was imposed to avoid any confusion. Nowadays, while the distributor oversees transporting energy, the supplier's role is to sell retail electricity to the end customer, taking care of all the administrative and commercial aspects of the supply.
• In the Italian electricity market, the price of energy corresponds to the equilibrium price obtained by matching the quantities of electricity requested and those offered by the operators participating in the market. The Power Exchange is not a compulsory market: in fact, operators can also conclude sale and purchase contracts outside the exchange platform, through so-called bilateral contracts (OTC – Over The Counter).

Trends in the electricity industry

Since Japan experienced the Great East Japan Earthquake and the Fukushima Daiichi Nuclear Power Plant accident in March 2011, the Japanese government has been accelerating dramatic reforms of Japan’s electricity system and nuclear power plant operation.

The Cabinet approved the Policy on Electricity System Reform in April 2013. Based on this Policy, the electricity system reform was implemented in three phases: (i) the establishment of the Organization for Cross-regional Coordination of Transmission Operators (OCCTO) as a new government-authorized organization responsible for the promotion of the transmission and distribution network development and managing nationwide power supply and demand adjustment; (ii) the full liberalization of entry into the retail electricity market; and (iii) the legal unbundling of the transmission and distribution sector, and the elimination of regulated retail rates. Only the elimination of regulated retail rates is yet to be implemented.

The Cabinet also approved the “Sixth Strategic Energy Plan” in October 2021. The basic philosophy under the Strategic Energy Plan is to realize “S+3E,” which stands for safety plus energy security, economic efficiency, and environment. In the plan, the following goals are identified for the realization of S+3E: (i) regarding energy security, improvement in energy self-sufficiency to approximately 30%; (ii) regarding economic efficiency, reduction of costs in the face of an anticipated increase in surcharges arising from widening adoption of renewables; (iii) regarding the environment, the pursuit of, among other greenhouse gas reduction targets, reduction of energy-related CO2 emissions by approximately 45%; and (iv) regarding safety, action to increase the safety of nuclear power.

Structure of the electricity industry

The Electricity Business Act (the EBA) is the main law governing the electricity industry. At present, the electricity business is basically classified into the following three categories under the EBA: (i) power generation, (ii) power transmission and distribution, and (iii) power retailing. The business in each category requires different types of licenses.

Power Generation Business

The power generation business requires an advance filing with METI. According to certain governmental sources, 986 entities had obtained power generation licenses as of June 30, 2021, with generating capacity of 70 GW as of March 2021.

Operating nuclear reactors for electric power generation is subject to a special regulation under the Act on the Regulation of Nuclear Source Material, Nuclear Fuel Material and Reactors (the Nuclear Reactors Law). The Nuclear Reactors Law requires a pre-operational inspection and periodic inspections by the Nuclear Regulation Authority (NRA), and filing the operation plans with the NRA and obtaining approval before the commencement of operation.

Power Transmission and Distribution Business

Both the general transmission and distribution business and the transmission business require a license (kyoka), and a certain type of business called the “specified electricity transmission and distribution business” requires a filing with METI. Ten “general electricity utilities” operate the general transmission and distribution business and three other companies (J-POWER, North Hokkaido Wind Energy Transmission) operate the power transmission business. In addition, 36 companies such as Sumitomo Joint Electric Power Co., Ltd., operate the specified electricity transmission and distribution business as of 26 August 2021.

Power Retailing Business

The power retailing business was fully liberalized as of April 2016 through a series of amendments to the EBA. To engage in the power retailing business, prior registration with METI is required. According to certain governmental sources, as of August 25, 2021, 730 entities had obtained retail business licenses. In addition to affiliated companies of the general electricity utilities, electricity retailers include telecommunications carriers, trading companies, gas and petroleum companies, and steel manufacturers.

Market Status

In FY 2020, the electricity demand in Japan was 863.2 TWh and peak national demand came to 59.2 GW. The power consumption breakdown consists of 27% residential demand, 34% commercial demand and 37% industrial demand.

On the other hand, the electric power generated in Japan came to 845.4 TWh. The progressive shutdown of nuclear power plants following the Fukushima Daiichi Nuclear Power Plant accident increased dependence on thermal power plants and caused thermal’s share of power generated to rise from 79.1% in FY 2010 to 82.6% in FY 2020. Total generating capacity in Japan came to 312.8 GW at the end of FY 2020. This consisted of 51.1% thermal power (14.7% coal, 26.9% LNG, and 9.5% oil), 10.6% nuclear power, 15.7% hydro, and 22.5% renewables (excluding hydro).

The Japan Electric Power Exchange (JEPX) is a Japanese wholesale electricity trading market and it provides both a spot-trading market and a forward trading market. The volume of trades on the JEPX spot market has been on the rise, reaching 312.8 TWh (equivalent to more than 30% of all electric power sold nationwide) in FY 2020. The average system price of supply for FY 2020 as a whole was 11.21 JPY/kWh.

Electricity industry overview

• As at  June 2021, Kenya’s installed effective (grid and off-grid) capacity was  2802 MW¹ made up as follows:
  • 28.7% geothermal
  • 28.9% hydro
  • 24.9% thermal
  • 13.4% wind
  • 3.2% solar
  • 0.07% biomass 
• The Least Cost Power Development Plan (LCPDP) 2021-2030 indicates that as at the end of the 2019/2020 period, electricity generated in Kenya comprised of:
  • 45.6% from geothermal
  • 36.2% from hydro
  • 9.6% from wind
  • 6.7% from fossil fuels
  • 0.8% from solar 
• The above statistics reflect the reality that while thermal sources still form a large part of Kenya’s installed capacity, there has been a continuous decline in electricity purchased from thermal generation. Energy purchased from thermals reduced from 1,298 GWh in the 2018/2019 financial year to 882 GWh in the 2019/2020 financial year. In contrast, energy purchases from wind and solar have increased. 

Electricity laws

• The energy sector in Kenya has undergone major reforms over the years culminating in the unbundling of the power sector in 1997 and the enactment of an Energy Act in 2006. Before 1995, the electricity sector in Kenya was operated as an integrated monopoly under the supervision of the Kenya Power and Lighting Company (KPLC). 

• In 2019, Kenya enacted the Energy Act, 2019, (Energy Act) a robust legal framework which consolidates the laws relating to energy; promotes renewable energy; promotes exploration, recovery and commercial utilization of geothermal energy; and regulates midstream and downstream petroleum and coal activities, among others. The Energy Act repealed the Energy Act, 2006, the Kenya Nuclear Electricity Board Order, 2013 and the Geothermal Resources Act, 1982 which previously governed the sector. Key regulations under the Energy Act are currently being developed.
• Kenya also has in place a Feed-in-Tariff Policy (FiT Policy), which is an instrument for promoting generation of electricity from renewable energy sources by guaranteeing a pre-determined tariff for power producers for a period of 20 years.
• The Public Private Partnerships Act, 2021 (PPP Act) also affects the electricity as it governs the participation of the private sector in the financing, construction, development, operation, and maintenance of government infrastructure and development projects.
• There are various institutions involved in Kenya’s electricity sector including:
  • The Ministry of Energy, which heads the institutional framework and is responsible for developing and implementing policies that create an enabling environment for efficient operation and growth of Kenya’s energy sector.
  • The Energy and Petroleum Regulatory Authority (EPRA), which is the regulator of the electricity and petroleum sectors in Kenya. Its functions include reviewing electricity tariffs, enforcing safety and environmental regulations in the power sector and safeguarding the interests of electricity consumers.
  • The Rural Electrification and Renewable Energy Corporation (REREC), which is mandated to promote and develop Kenya’s renewable energy drive, in addition to implementing rural electrification projects.
  • The Nuclear Power and Energy Agency (NUPEA), which is tasked with implementation of the nuclear energy programme and promotion of the development of nuclear electricity generation in Kenya. Though NUPEA is currently in place, the Presidential Taskforce Report, which emanated from a Taskforce appointed by the President in March 2021 to review PPAs entered into by KPLC, has recommended its abolishment, as it is unlikely that the country will go into nuclear power production in the foreseeable future.
  • The Energy and Petroleum Tribunal, which is mandated to hear and determine disputes relating to the energy sector. 

Generation, distribution and transmission

• In Kenya, the bulk of electricity is generated by the Kenya Electricity Generating Company (KenGen) which is a company mandated with generation of electricity through the development, management, and operation of power plants. It’s 70% owned by the government, with 30% private shareholding through its listing at the Nairobi Securities Exchange. KenGen accounts for 62.97% of Kenya’s effective generation capacity. Independent Power Producers (IPPs) account for 35.95% of the capacity while off-grid systems under the Rural Electrification Programme (REP) implemented account for about 1.07%.
• In June 2021, KenGen’s share of the electricity generation increased to 65.8% while IPPs share slightly decreased to 33.57%. REREC’s share also decreased to 0.63%.²
• Electricity transmission is carried out by the Kenya Electricity Transmission Company (KETRACO) which is a state corporation whose mandate is to plan, design, construct, operate and maintain high voltage (132 kilovolts and above) electricity transmission lines.
• Distribution is handled by KPLC, which is the system operator and the main off-taker in the Kenyan power market. KPLC buys bulk power from power generators on the basis of negotiated Power Purchase Agreements (PPAs) for onward supply to consumers.

References

[1] EPRA: Energy & Petroleum Statistics Report 2021 page 10

[2] EPRA: Energy & Petroleum Statistics Report 2021 pg 14

• In Mauritius, the primary energy requirements are met from a mix of imported sources (mainly petroleum products and coal) and local renewables. In 2020, 76.1% of the country’s electricity was generated from non-renewable sources: coal (39.5%), fuel oil and diesel (36.6%). The remaining 23.9% was obtained from renewable sources: bagasse (sugarcane pulp used as biomass fuel) (13.3%), photovoltaic (PV) (5.1%), hydro (4%), wind (0.6%) and landfill gas (0.9%).
• In 2020, due to the COVID-19 pandemic, lockdown restrictions came into effect on the Island of Mauritius from March to May. This pandemic has impacted various sectors of the economy including the energy sector which saw approximately 11% reduction in electricity generation in 2019/ 2020. Electricity’s peak demand dropped from 507 MW to 494 MW resulting in a reduction in the sale of electricity from 2,716 GWh to 2,409 GWh, with the commercial and industrial sectors most impacted. There were also decreases in imports and in the consumption of petroleum products such as gasoline, diesel oil and aviation fuel. In contrast, renewable energy sources such as photovoltaic, hydro, landfill gas and wind have been on the rise.
• The Climate Change Act was gazetted on 28 November 2020 and came into force on 22 April 2021. Under the Act, the Department of Climate Change is responsible for coordinating the implementation of relevant commitments to ensure compliance with the international climate change agreements. An Inter-Ministerial Council on Climate Change is provided to set national objectives, goals and targets with a view to make Mauritius a climate resilient and low emission country. A Climate Change Committee has also been established to enable multi-stakeholder participation for the preparation of the national climate change strategies and action mitigation and adaptation plans.
• The Act builds on an already strong climate change regulatory framework which includes:
  • Mauritius Renewable Energy Agency Act of 2015;
  • the National Disaster Risk Reduction and Management Act of 2016;
  • Land Drainage Authority Act of 2017;
  • Local Government (Amendment) Act, 2018; and
  • Mauritius Meteorological Act, 2019.

• The electricity industry in Mozambique is characterized by the prominent role played by the National Electricity Utility Company, Electricidade de Moçambique (EDM) which manages the national grid and actively participates in the entire value chain, from generation to distribution s well as being the sole electricity offtaker.
• EDM was created in 1977 (two years after the independence) and since then has been acting also as the sector’s joint regulator with the National Electricity Council, Conselho Nacional de Electricidade (CNELEC). The Energy Regulatory Authority, Autoridade Reguladora de Energia (ARENE) replaced CNELEC in 2017.
• The right to develop electricity projects is granted through a Power Concession Agreement by (i) the Ministry of Mineral Resources and Energy for projects with capacity less than 100 MW and by (ii) the Council of Ministries (the Government) for projects with capacity from 100MW.
• The majority of the electricity in Mozambique is generated from hydropower thanks largely to Cahora Bassa, the largest hydroelectric power plant in the continent.  It has a capacity of 2.075 MW and plays a pivotal role in the Southern Africa Power Pool as well as acting as a hub of electricity generation for the Southern Africa region.
• Energy scarcity continues to be a significant challenge with only 34% of the population having access to electricity.  This is compounded by the lingering colonial transmission and connection infrastructure which does not meet current demands. 
• In 2020, the installed electricity capacity was around 2.780 MW and, according to the 2018-2043 Integrated Master Plan for Electricity Infrastructures, that capacity will increase to 6.001 MW by 2030. In 2020 it was reported that almost 80% of Mozambique’s electricity matrix was hydropower ( 2.189 MW), and other sources including: 
  • 442 MW of natural gas,(16%);
  • 108 MW of Heavy Fuel Oil - HFO, (4%), and
  • 41 MW of solar photovoltaic, (1%). 
• The legal framework of the electricity sector in Mozambique is still under improvement and consolidation. The main legal instruments regulating the sector are as follows:
  • Law n. º 21/97, of 1 October (“Electricity Law”);
  • Law n. º 15/2011, of 10 August, (“Public, Private Partnership Law”);
  • Decree n. º 8/2000, of 14 April (“Electricity Law Regulation”);
  • Decree n. º 42/2005, of 29 November (“National electricity Grid;
  • Decree n. º 16/2012, of 4 June (“Public, Private Partnership Law Regulation”).
• In an attempt to address the challenge of electricity scarcity, the Government of Mozambique has approved the National Strategy for Electrification 2018 to 2030, which was followed by the launch of the Mozambique Electricity for All Project, also known as ProEnergia, replacing the MOZA-LIGA Project (which had essentially the same purpose). ProEnergia’s main goal is to ensure energy access for all citizens by 2030.
• To meet its targets, ProEnergia is looking to boost the country’s renewable energies capabilities. 

Key future projects are include:

• The Central Termica de Temane (CTT), a gas-fired power plant will have approximately 450MW capacity and will be complemented by the Temane-Maputo Transmission Project (TTP) which will involve the construction of 563km of 400kV single-circuit transmission lines along with three new substations. Construction works were scheduled to be started in late 2021;
• The construction of the long-awaited Mphanda Nkuwa Dam, which has a 1,500 MW capacity.

Electricity industry overview 

• In 2022 the total electricity consumption was 117 billion kWh. The total gross electricity production was almost the same as in 2021.
• In recent years, the contribution of fossil fuels in electricity production has decreased in favor of renewable energy. This trend continued in 2022. While 81 percent of total electricity production came from fossil fuels in 2016, it was 55 percent in 2022.
• Of the total electricity production 40 percent came from renewable sources, up from 33 percent one year previously. Solar power production increased by 54 percent, while wind power production was up by 17 percent. This was largely related to increased capacity and more favourable weather conditions. Electricity production from biomass and hydropower declined. Production from fossil sources fell by 11 percent.
• Sources of energy used for electricity, per 2022:
  • Gas 39,6%
  • Wind 17,5%
  • Solar 14,6%
  • Coal 12%
  • Bioenergy 7,9%
  • Other fossil 5%
  • Nuclear 3,4% 

Electricity Act 1998 

• The Dutch Electricity Act of 1998 (the Elektriciteitswet 1998) is a pivotal piece of legislation that governs the production, transport, distribution, and supply of electricity in the Netherlands. The act deals with market liberalization and competition, unbundling of activities, grid management and access, guaranteed supply and universal service, and regulation and oversight.
• The Electricity Act is to be replaced by the new Energy Act. According to the Dutch government, the act aims to better protect energy consumers, enable more flexible use of the electricity grid, and organize secure data exchange between grid operators, energy companies, and consumers. Further, it establishes the foundation for significant changes in the Dutch energy system, which will contribute to combating climate change and reducing dependence on the import of fossil fuels. Additionally, it provides consumers, social institutions, and businesses with more opportunities to actively participate in the energy market. 

Generation, distribution and transmission 

• In the Netherlands, the major electricity distributors are Liander, Enexis and Stedin.
• TenneT is the sole electricity TSO in the Netherlands. It is responsible for the management, operation, and development of the high-voltage electricity grid in the country. TenneT ensures the reliable and secure transmission of electricity across the Netherlands. 

Regulators 

• The Electricity Act 1998 establishes regulatory bodies responsible for overseeing and enforcing the provisions of the act. These include the Authority for Consumers & Markets (ACM) and the Netherlands Enterprise Agency (Rijksdienst voor Ondernemend Nederland or RVO). These agencies play a role in regulating and monitoring the electricity market.

Electricity industry overview

• In 2019, 44,811GWh of electricity was generated in New Zealand. New Zealand does not rely heavily on fossil fuels. 82.4% of electricity is generated from renewable sources. Electricity generation is comprised of:
  • 55-60% from hydropower (2019 figures);
  • 14.9% from gas (2015 figures);
  • 17.4% from geothermal (2019 figures);
  • 5.1% from wind (2019 figures);
  • 4.1% from coal (2019 figures);
  • 0.8% from wood (2015 figures);
  • 0.5% from biogas (2015 figures);
  • 0.1% from waste heat (2015 figures); and
  • 0.3% from solar (2015 figures).

• Electricity demand is expected to grow at 1% per annum until 2030. 

Electricity laws

• Like many sectors in the economy, the energy sector underwent major reforms during the 1980s and 1990s. The reforms deregulated the market and limited the reach of state monopolies. The Electricity Act 1992 sets out the overall regulatory framework for the electricity industry. The Electricity Industry Participation Code 2010 governs the operation of the electricity market.
• The Electricity Industry Act 2010 was a result of a ministerial review of the electricity sector. The Act has sought to improve competition within the electricity market, enhance security of supply and it also abolished the Electricity Commission, replacing it with the Electricity Authority.
• The Ministry of Business, Innovation, and Employment advises the Government on energy efficiency and renewable energy matters. The Minister of Energy and Resources is responsible for the New Zealand Energy Efficiency and Conservation Strategy. The National Energy Research Institute conducts energy research within New Zealand.
• Transpower New Zealand Limited, being the sole owner and operator of the New Zealand national bulk electricity transmission grid, is subject to individual price-quality regulation under Part 4 of the Commerce Act 1986. 

Generation, distribution and transmission

• In New Zealand, electricity is generated by five major electricity generating companies. Genesis Energy, Mercury and Meridian Energy operate under a mixed ownership model in which the Government holds a majority stake. Contact and Manawa are private sector companies.
• In 2016, the generation share comprised:
  • Meridian Energy (35%);
  • Contact Energy (21%);
  • Mercury (16%);
  • Genesis Energy (13%);
  • Manawa (6%); and
  • the remainder made up from a number of smaller generating companies.

• Generation companies own and operate power stations across the country. Most of New Zealand’s electricity is generated at remote locations and requires an efficient transmission system to transport it to the main centres. More than 200 generation plants are able to supply electricity to the national grid. Some of the smaller scale generation is ‘embedded’ and feeds directly into local distribution networks.
• Transpower New Zealand Limited is the sole owner and operator of the New Zealand national bulk electricity transmission grid.

Electricity industry overview

• Nigeria has circa 12,500 megawatts of installed generation capacity, which is largely dependent on natural gas. About 87.5% of the on-grid energy supply mix is derived from thermal plants (gas) with the remainder generated from hydropower sources.
• Prior to 2005, the entire power generation, transmission and distribution chain was monopolized by the state corporation – National Electric Power Authority (NEPA). This resulted in inadequate generation, poor maintenance of transmission systems, a lack of adequate funding for distribution infrastructure and illiquidity due to high Aggregate Technical and Commercial Losses (AT&C) amongst other issues.
• As a result, the government embarked on a comprehensive reform of the electricity sector which culminated in the enactment of the Electric Power Sector Reform Act, 2005 (ESPRA). Key highlights of EPSRA included abolishing NEPA, the privatisation of the electricity sector and the setting up of sectoral regulators for the industry - NERC.
• The reforms articulated under EPSRA concerning privatisation, were expected to be incremental. In the first stage, NEPA was to be abolished and its assets temporarily transferred to a new company – Power Holding Company of Nigeria (PHCN).
• PHCN was also expected to be unbundled within a relatively short time frame, with its assets transferred to successor companies. Hence, the government unbundled PHCN into 18 companies comprising of 6 generation companies, 1 transmission company and 11 distribution companies. With the exception of the transmission company, each of the Gencos and DisCos have been privatized.
• To support the privatization effort and ease liquidity constraint, the government set-up the Nigeria Bulk Electricity Trading Plc (NBET). NBET was expected to buy power in bulk from the 6 Gencos (and other privately licensed players) for on-selling to DisCos. This would ease the impact of the AT&C suffered by DisCos and encourage uninterrupted production of power by the gencos.
• Other stages the privatisation reform include the Transition stage, the Medium-Term market stage and the Long-Term market stage. The Transition market stage is characterized mainly as competition for the market; the medium-term market is characterized by full wholesale competition for and in the market; and the long-term stage expects the market to be open to full wholesale and retail competition.
• On 22 April 2014, NERC published the Rules for the Interim Period between Completion of Privatisation and the Start of the Transitional Electricity Market of Nigeria Electricity Supply Industry (Interim Rules). Primarily, the interim rules were to kick-start the transitioning into the Temporary Electricity Market. It established a framework to govern trading arrangements when PPAs between PHCN successor Gencos and NBET and vesting contracts between NBET and PHCN’s successor DisCos, will not be operative.
• Outstanding issues still remain regarding metering, illiquidity in the distribution infrastructure, inadequate funding, poor transmission network etc. 

Electricity laws

• The Electric Power Sector Reform Act 2005 (EPSRA) is the primary legislation that governs the Nigerian Electricity Supply Industry (NESI). As previously noted, EPSRA established the sectoral regulator for the industry - Nigerian Electricity Regulatory Commission (NERC). Key responsibilities of NERC includes licensing and regulating persons engaged in the generation, transmission, system operation, distribution and trading of electricity.
• Environmental Impact Assessment Act 1992: The Environmental Impact Assessment Act (the EIA Act) makes it mandatory for an EIA to be conducted for projects that are likely to have significant effects on the environment, including power projects. The EIA is a requirement for obtaining a generation licence from NERC.
• Meter Asset Provider and National Mass Metering Regulations 2021: The Meter Asset Provider and National Mass Metering Regulations (the “Regulations”) were issued by NERC on 19 August 2021. The Regulations which amended the Meter Asset Provider Regulations 2018 provided regulatory guidelines for the provision of meters to customers of the distribution companies  and the achievement of the following goals: closing of the metering gap through accelerated roll out of meters; elimination of estimated billing practices in the NESI; attracting private investment to the provision of metering services; and enhancing revenue assurance at the retail end of the NESI.
• The Regulations on National Content Development for the Power Sector 2014: The objectives of the Regulations  are to promote the deliberate utilization of Nigerian human and material resources, goods, works and services in the industry. Also, to build capabilities in Nigeria to support increased investment in the industry, and to leverage existing and future investment to stimulate the growth of Nigerian-located enterprise.
• NERC Regulations for Independent Electricity Distribution Networks 2012 (IEDN Regulations): The IEDN Regulations provides standard rules for the issuance of licences to qualified operators and licensees to engage in electricity distribution, independent of distribution systems operated by the DisCos.
• NERC Guidelines on Distribution Franchising in the Nigerian Electricity Supply Industry (the Franchising Guidelines): The Franchising Guidelines were issued by NERC on 2 July 2020, to provide regulatory framework for franchising arrangements by electricity distribution licensees (DisCos). The grant of distribution franchise by DisCos is expected to: stimulate investments that address the liquidity and infrastructure challenges in the distribution sector; provide a platform for third parties to invest in the distribution sector; and to further improve the quality and reliability of electricity supply to the end use customer.  
• NERC Mini-Grid Regulations 2017: This was another ambitious project to stimulate investment in the power sector, particularly for underserved (i.e., areas getting inadequate supply of power from DisCos) and unserved (i.e., no supply) areas.
  
  Under the regulations, a license for Mini-Grids with a generation capacity of up to 1 MW may be issued to qualified persons. Structurally, a mini-grid could be isolated or interconnected, the key consideration being whether the mini-grid is connected to a distribution network of a DisCo. Tariff for power generated under the regulations are calculated under the extant MYTO methodology.

In Norway there is in general a mix of renewable energy sources, mainly being:

• Hydropower
• Wind (onshore, offshore new industry)
• Solar
• District heating
• Bio energy
• Thermal 

New laws in the past 1-2 years: Offshore renewable energy production is governed by the Offshore Energy Act and the Offshore Energy Regulation. This legislation regulates the application for licenses, development phase, construction phase etc. of the new offshore wind power industry in Norway, and is currently subject to amendments going forward, please see details under "offshore wind" below.

Electricity industry overview

• In 2021, 53,990 GWh of electricity was generated Peru within the framework of National Electric Power Interconnected System (SEIN). Peru does not rely heavily on fossil fuels. The major percentage of electricity is generated from hydro and gas. Electricity generation is comprised of:
  • 56.8% from hydropower
  • 38.38% from thermoelectric
  • 3.34% from wind
  • 1.49% from solar 

Electricity laws

• In 1955, the development of the regulation of the electric sector in Peru began with the Electric Industry Law (Decree Law No. 12378), published in the Official Gazette El Peruano on June 8, 1955, and regulated on January 5, 1956. This was the first regulatory framework in the history of the Peruvian electricity sector, and it established precise rules for the development of the electricity business with guidelines for the state and the "concessionaire of public services." This regulation stimulated the development of the sector in the country by enabling private companies to obtain information to expand investments and meet the increase in their demand.
• In May 1982, President Belaunde enacted Law No. 23406, General Electricity Law (LGE), which was based on the previous electricity laws. Due to the financial crisis of the sector, a new decentralized legal framework was proposed. The provision of the public electricity service remained in the hands of the state and regional companies were created as subsidiaries of Electro Peru. The distribution activity was transferred to the regional companies. Electro Peru acted as a holding company, being in charge of the Mantaro, Cañón del Pato, Carhuaquero and Cahua power plants.
• Beginning in March 1991, the government of Alberto Fujimori implemented an aggressive process of structural reforms aimed at reducing state intervention. The new approach was aimed at achieving sufficiency in electricity supply through an economy integrated to international trade and the structuring of competitive markets. In this new context, on November 19, 1992, Law No. 25844, Law of Electric Concessions, was decreed, which repealed the LGE, the previous regulatory framework for the sector.
• In July 2006, the Law No. 28832, Law to ensure the efficient development of electricity generation, was published. This law was created with the purpose of ensuring the sufficiency of efficient generation to reduce the exposure of the Peruvian electricity system to price volatility and the risks of prolonged rationing due to lack of energy. It also aimed to reduce administrative intervention for price determination and introduce a compensation mechanism between the SEIN and the Isolated Systems.
• In September 2015, the Peruvian government published the Law No. 28749, General Rural Electrification Law, with the objective of establishing the regulatory framework for the promotion and efficient and sustainable development of electrification in rural areas, isolated and border localities of the country. 

Generation, distribution and transmission 

• In Peru, electricity is generated by six major electricity generating companies: Electro Peru, Enel Generacion Perú, Engie, Fenix Power, Kallpa and Statkraft. These companies operate as private sector companies, although electricity market is strictly regulated by Government policies and companies do not possess free will to generate and distribute energy. 
• In 2021, the generation share comprised:
  • Kallpa (17.1%)
  • Electro Peru (13.1%)
  • Engie (12.4%)
  • Enel Generación Perú (12.8%)
  • Fenix Power (6.3%)
  • Statkraft (4.5%)
  • Others (33.8%) 

The remainder was made up of a number of smaller generating companies.

• Generation companies own and operate power stations across the country. Most of Peru’s electricity is generated at remote locations and requires an efficient transmission system to transport it to the main centers.
• According to the information available in the COES, to date there are 18 projects in the electricity generation subsector, for the period from 2022 to 2024. Although the existence of projects in the electricity sector is positive, the outlook does not seem to be very dynamic in the short term on the side of the generation supply.
• On average, 100 MW per year would be adding, compared to an average growth of the maximum demand of 200 MW. However, in the short term, this would not cause a problem in the close panorama due to the available supply, currently, in the country.
• Regarding the transmission projects (13 to date), they belong to the Proinversion's portfolio and it is expected that they will be tendered under the modality of a Public Private Partnership (PPP).

Electricity industry overview

Electricity market structure as of December 31, 2021 (installed power)

Source

• According to the information presented in the graph above, the majority of the total installed capacity in Poland comes from bituminous coal. However, what needs to be noted is the increase of the electricity generated from the renewable sources which makes up 28.12% of total installed capacity (increase by 7.43 percentage points (around 36%) since 2020).
• The total installed capacity in 2020 was 49,238 MW (5.2% increase from 2019). Additionally, annual electricity consumption reached 174.4 TWh (5,4% increase from 2020).
• The electricity consumption also varied between the sectors. As of the day of compiling this information, we do not possess the data for 2022; however, we do have the data regarding the consumption of electricity in 2021.

Key players on the electricity market

• Energa Capital Group
• Enea S.A.
• Tauron Polska Energia S.A.
• PGE Polska Grupa Energetyczna S.A.
• innogy Polska S.A. (since the end of 2021 – E.ON Polska S.A.). 

Key plans and challenges

Key plans and challenges with regard to the electricity market in Poland include the transformation of the energy generation system. There’s a plan to move away from coal and lignite and focus on renewables. This transition is expected to be helped by the commencement of the first nuclear power plant in Poland, which is currently being planned; however, no further actions have yet been undertaken to speed up construction.

Further issues regard the renewables industry and have been described below.

Legal framework

The following legal acts are the main legal acts regulating specific branches of the energy sector in Poland:

• Act of March 6, 2018, on the rules of participation of foreign entrepreneurs and other foreign persons in the economic trade on the territory of Poland
• Act of February 20, 2015, on Renewable Energy Sources
• Act of 27 April 2001 – the Environmental Protection Law
• Act of 3 October 2008 on Making Available Information on the Environment and its Protection, Public Participation in Environmental Protection and Environmental Impact Assessments
• Act of April 10, 1997 – Energy Law
• Act of April 23, 1964 – Civil Code
• Act of July 7, 1994 – Construction Law
• Act of March 27, 2003, on Zoning Planning and Development

Portugal is one of the EU countries with the highest energy dependence rate, totalling 74.2% in 2019. This is mainly due to the lack of fossil energy sources which continue to have a significant impact on the total consumption of primary energy.

Portugal has no production of crude oil, natural gas, or coal, and relies entirely on imports for these energy sources. Domestic energy production comes primarily from bioenergy (direct use and electricity generation) and generation from wind and hydro.

• Oil products were the largest energy source in 2019, accounting for 43% of TES (Total Energy Supply).
• Road transport accounted for most oil products demand (51%), followed by industry (16%) and oil-based building heating (5%).
• Natural gas is the second-largest energy source, accounting for 24% of TES, and is used mainly for electricity generation (60%) and industrial processes (24%). 

Portugal was among the first countries in the world to set 2050 carbon neutrality goals. Portugal’s energy and climate policies push for carbon neutrality primarily through broad electrification of energy demand and a rapid expansion of renewable electricity generation, along with increased energy efficiency. There is a strong focus on reducing energy import dependency and maintaining affordable access to energy.

Portugal’s National Energy and Climate Plan (NECP) sets 2030 targets for a 17% reduction of non-ETS GHG emissions and a 45-55% reduction in total GHG emissions (both compared to 2005 levels), energy efficiency (primary energy demand less than 21.5 million tonnes of oil equivalent (Mtoe), compared to 22.1 Mtoe in 2019, and final energy demand less than 14.9 Mtoe, compared to 17.1 Mtoe in 2019), renewable energy (47% of gross final energy demand, 80% of electricity generation, 49% of heating and cooling demand, and 20% of transport demand), 15% cross-border electricity interconnection (compared to 10% in 2019), and 65% external energy dependency (compared to 74% in 2019).

Decree-Law no. 15/2022, dated 14 January, as last amended

This Decree-Law establishes the revised framework for the National Electric System (“SEN”) in line with the needs and challenges posed by the strategic instruments that guide the energy policy of the European Union and Portugal.

The legal framework currently in force introduces amendments to the organization and operation of the SEN, notably:

• Centering in one single law all matters related to the organization and operation of the SEN;
• Removing the distinction between ordinary and special-size production, thus eliminating 2 separate licensing procedures for power production activity;
• Imposing the installation of smart meters and grids;
• Strengthening consumer information rights;
• Establishing the legal framework applicable to new realities, such as retrofitting, hybrids, and storage, as well as to projects for innovation and development through the creation of three Technological Free Zones (“ZLT”).

Electricity industry overview 

According to data published by Romania’s electrical grid transport and system operator (C.N.T.E.E. Transelectrica S.A.), in 2021, compared to the previous year, net domestic consumption increased by 5% and net energy production by 6% (to 56.1 TWh). In the structure of the production mix, in 2021, there was a decrease in nuclear of 2% and in renewables of 3%. The contributions from thermo and hydro sources have increased by 9% and 13% respectively. The components of the net energy production mix are:

• Thermo: 35%
• Hydro: 31%
• Nuclear: 18%
• Renewables: 16% 

Following the European Commission's recommendations, Romania's updated contribution to achieving the EU objectives by 2030 as highlighted below (set out by the Integrated National Plan in the field of Energy and Climate Change 2021-2030) is:

• ETS (i.e. Emissions Trading System) emissions (vs 2005): -43.9%
• Non-ETS emissions (vs 2005): -2%
• Renewables proportion from the total gross consumption: 30.7%
  • Renewables in the electricity system: 49.4%
  • Renewables in the transport system: 14.2%
  • Renewables in the heating and cooling system: 33%
• Energy Efficiency:
  • Primary Consumption: -45.1%
  • Final Consumption: -40.4% 

Electricity laws 

The main regulatory act in the energy sector is represented by Law 123/2012 of electric energy and natural gas (“Energy Law”), which establishes the general legal framework of Romania’s energy system. This general framework is further detailed under the secondary legislation, which mainly consists of norms and regulations adopted by the National Authority for Energy Regulation (ANRE).

As a general consideration, Romania’s energy sector is highly regulated and dynamic, with specific secondary legislation addressing in detail a variety of subjects, from the establishment of new production capacities, licensing of energy operators for various activities (e.g. production, trading, supply etc.), grid connection rules and procedures as well as energy markets’ organization and operation. 

Major changes have been implemented recently to the legislative framework in the energy sector, starting with the adoption of a substantial set of amendments to the Energy Law, through the enactment, at the end of 2021, of Government Emergency Ordinance no. 143/2021 for the amendment of Law no. 123/2012 of electricity and natural gas, as well as for the amendment of other regulatory acts (“GEO 143/2021”). The amendments were mainly focused on the alignment of the Energy Law with the provisions of Directive (EU) 2019/944 of the European Parliament and of the Council on common rules for the internal market for electricity, which had a transposition deadline of 31 December 2020. Romania was formally notified by the European Commission in February 2021 for failing to communicate the transposition measures of the aforementioned Directive.

Arguably the most anticipated change brought on by GEO 143/2021 was the definitive lift on the ban over directly negotiated PPAs on the Romanian electricity market. Prior to this amendment, directly negotiated PPAs have been prohibited under the law since 2012, with a first step towards partially lifting the ban having been implemented in 2020, but that only applied to production capacities commissioned after 1 June 2020. Other relevant changes implemented under GEO 143/2021 focused on aspects such as increased transparency from grid operators over grid development plans and connection procedures, a more favorable legal framework for energy prosumers (ie, consumers operating small electricity production capacities), aimed to encourage the adoption of small scale photovoltaic solutions by individuals and companies, as well as a more extended legal framework for electricity storage and electric vehicles charging stations.

GEO 143/2021, although already in force, is currently undergoing a process of Parliamentary approval, having been approved with amendments by the Romanian Senate and currently under review by Romania's second Parliamentary body, the Chamber of Deputies.

In the context of the wider energy crisis, following a first set of state intervention measures on the energy market, which applied from 1 November 2021 until 31 March 2022, the Romanian Government decided to extend the emergency regulatory intervention through the adoption on 18 March 2022 of the Government Emergency Ordinance no. 27/2022 on the measures applicable to final consumers on the electricity and natural gas market between 1 April 2022 and 31 March 2023, as well as for amending and supplementing certain regulations in the energy sector (GEO 27/2022).

GEO 27/2022 extended the support provided to consumers until 31 March 2023, by implementing caps on the electricity and natural gas prices, for both household and non-household consumers. Another measure that was extended and further regulated was the additional taxation of incomes derived by electricity producers. Thus, until 31 March 2023, the additional income generated by electricity producers and resulting from the difference between the average monthly selling price of electricity and the price of RON 450 (approx. €90)/ MWh will be taxed at 80%. The 80% tax does not apply to income derived by electricity producers from production capacities that are commissioned after the entry into force of GEO 27/2022. Under the previous set of measures (applicable between 1 November 2021 until 31 March 2022), fossil fuel-based electricity producers were also exempt from the application of this additional tax, but this exemption, deemed discriminatory by other categories of producers, was no longer maintained under GEO 27/2022.

Electricity industry overview

The 2012 Energy Sector Development Policy Letter aimed to diversify sources of energy generation. The Senegalese National Electricity Company signed several power purchase agreements with independent power producers in order to buy MW generated power from private companies to be injected in the public grid.

In addition, the Senegalese National Electricity Company occasionally  buys surplus renewable energy power generated by self-producers.

Production rates

The energy mix refers to the power generation from coal, gas, hydro, solar and wind. Please see percentages below:

• Power generation from location: 5.2%
• Power generation from SENELEC: 31%
• Power generation from IPP (conventional): 27.4%
• Power generation from Mauritania (importation) :1.4%
• Power generation from Self-producer: 0.4%
• Power generation from Non-interconnected grid: 4.7%

Projects and strategies

In 2013, the Republic of Senegal adopted the energy strategic plan, which aimed to increase the dynamic energy mix in the country for five years (2013-2018).

Between 2013 and 2018, plants producing 143 MW of solar PV, 201 MW of heavy oil convertible into natural gas, 15 MW of hydroelectricity (from the Organization for the Development of the Senegal River infrastructures), and 125 MW of coal power were installed.

Government plans

In 2019, the government adopted an electricity roadmap for 2035 to increase access to electricity, increase the mix of energy sources, and reorganize the electricity subsectors (production, transport and commercialization) as well as the governance of the sector. This roadmap is in line with the Senegalese Development Plan for 2035 adopted in 2014.

The total capacity will be increased in the next few years as Senegal has discovered 17 trillion-cubit feet of natural gas at the Grand Tortue Ahmeyim (GTA) gas field near the maritime border with Mauritania. Production is expected to start around 2023. In this regard, a gas code was adopted in 2020 through Act No. 2020-06, following a National Strategy Plan called “Gas to Power” developed in 2018. The main objective of this strategic plan is to produce electricity from natural gas and to increase public access to electricity in Senegal.

Electricity laws

• Law No. 2021-31 relative to the electricity Code
• Law No. 2021-32 relative to creation and functioning of the Regulatory Body in charge of energy and oil & gas sectors

Electricity industry overview 

• The Swedish electricity market was deregulated in 1996. Both trade and production of electricity have since been exposed to full market competition. 
• In 2020, 160,9 TWh of electricity was generated in Sweden which is 2.9% lower than the year before. The dominant sources since the 1980s are hydro and nuclear power. 56.4% of electricity is generated from renewable sources (2019 figures). 
• Electricity generation is comprised of:
  • 44,7% from hydropower (2020 figures);
  • 29,4% from nuclear (2020 figures);
  • 8,2% from conventional thermal power (2020 figures);
  • 17,1% from wind (2020 figures);
  • 0,6% from solar (2020 figures). 

Electricity laws 

• The Swedish electricity market is governed by both local regulation as well as applicable regulations adopted within the European Union (EU). The Swedish electricity act (1997:857) (Sw. Ellagen) sets out the overall regulatory framework for the Swedish electricity market.
• The Swedish Environmental code (1998:808) (Sw. Miljöbalken) sets out the regulatory framework for environmental assessments in relation to activities that may have an impact on the environment.
• The Electricity Certificate Act (2011:1200) (Sw: lagen om elcertifikat) regulates the system of electricity certificates which is used to boost the use of renewable energy.
• The Certification of Transmission Network Companies for Electricity Act (2011:710) (Sw. Lag om certifiering av transmissionsnätsföretag för el)
• The Special Management of Certain Electrical Installations Act (2004:875) (Sw. Lag om särskild förvaltning av vissa elektriska anläggningar)
• The Intervention Against Market Abuse in Trade in Wholesale Energy Products Act (2013:385) (Sw. Lag om ingripande mot marknadsmissbruk vid handel med grossistenergiprodukter) 

Generation, distribution and transmission

• The six largest electricity producers' share of the total production constituted approximately 78 % of the total production or 118.9 TWh. The largest producers are Vattenfall (100% owned by the Swedish state), Fortum (listed and 50% owned by the Finnish state), E.ON (listed in Germany), Uniper (owned by Fortum), Statkraft (100% owned by the Norwegian state) and Skellefteå Kraft (100% Swedish municipality owned).
• The transmission network is owned by the state enterprise Svenska kraftnät (SvK). SvK regulates the power balance and the operational reliability in the Swedish electricity network. SvK also transmits electricity from major power plants to regional electrical grids via the national grid.

Electricity industry overview 

• The Uganda electricity industry is partially liberalized and takes an unbundled structure that is delineated across three discrete areas: generation, transmission and distribution. The industry reorganisation took place in 1999 and followed wide-ranging structural form that completed the vertical unbundling of the national utility in existence at the time [Uganda Electricity Board], introduced private sector participation in the electricity distribution and generation segments, established an independent sector regulator, and introduced cost-reflective tariffs.
• The sector regulator is the Electricity Regulatory Authority (“ERA”), established in 1999 following the enactment of the Electricity Act 1999.
• Uganda has an installed capacity of approximately 1,252 MW and a system peak demand of approximately 720–740 MW. Uganda has four main sources of energy: hydropower (82%), thermal (7.8%), co-generation (5.1%) and grid-connected solar (4.7%). Even with an increased focus on alternative renewable energy sources by the Government of Uganda (“GOU”), installed and generation capacity is dominated by hydropower.
• The three major power dams are Bujagali II (250 MW), Isimba (183 MW), Kiira (200 MW) and Nalubaale (180 MW). Currently, construction is ongoing on the 600 MW Karuma dam, which is expected to be commissioned by the end of December 2022. Additional hydropower projects with a total rating of approximately 1,954 MW are currently in various stages of study and development.
• Uganda’s tariff model is a cost-reflective tariff, and the role of establishing a tariff structure and investigating tariff charges is vested in ERA.
• In terms of rural electrification, GOU established the Rural Electrification Fund in 2001 with the primary objective of promoting the equitable coverage of rural electrification in Uganda through the increased provision of access to electricity for economic, social and household use. The Rural Electrification Fund is administered by the Rural Electrification Agency (“REA”). GOU has so far implemented over 10,000 kilometres of medium-voltage power lines and approximately 9,000 kilometres of low-voltage distribution power lines. This has translated into the connection of over 700,000 customers onto the national grid.
• With respect to off-grid energy, ERA has licensed several private and REA-sponsored isolated grids to promote rural electrification. Off-grid installed generation capacity currently stands at approximately 8 MW. 

Electricity laws 

• The Constitution of the Republic of Uganda 1995 (as amended) – provides for the government of Uganda’s responsibility to develop an energy policy.
• Electricity Act 1999 and accompanying regulations / statutory instruments – provides for the establishment of the sector regulator, the generation, transmission, distribution, sale and use of electricity, the licensing and control of activities in the electricity sector and the liberalization of the electricity sector. 

Generation, distribution and transmission 

Generation 

On-grid electricity generation is a fully liberalized market, with several projects sponsored by both private and governmental entities. There are approximately 25 licensed generation companies in Uganda. 

The licensing process for generation under the Electricity Act is an unsolicited, non-competitive framework, and ERA’s role is to evaluate applications received from project developers against a defined set of eligibility criteria. Only in exceptional cases will ERA issue a generation license under the Electricity Act through a competitive tender process, in which the mainstream procurement rules will apply alongside the Electricity Act. 

Importantly, generation licenses are not issued as of right. ERA considers the prevailing government policy at the time, the available spinning reserve for a particular source of power based on national peak demand, the general state of the national energy mix and other wide-ranging technical, financial and policy considerations before deciding an application. 

Distribution 

The distribution function is also fully liberalized, with nine entities licensed to exclusively distribute electricity in defined territories. One key player is the Uganda Electricity Distribution Company Limited (UEDCL), a governmental entity formed for the specific purpose of distributing electrical energy in licensed territories and which owns the 33 KV-and-below voltage electricity distribution grid in Uganda. 

Umeme Limited is a well-known public limited company which took over the distribution system for the supply of electricity from UEDCL in certain territories under a concession (including all the associated operational assets) for the period 1 March 2005 to 28 February 2025. 

Transmission 

Electricity transmission is handled by the Uganda Electricity Transmission Company Limited (“UETCL”) under Uganda’s single buyer/off-taker electrical energy purchase model. 

UETCL is a governmental entity formed for the specific purpose of bulk power supply/transmission and system operation, operation of high voltage transmission grid, and power import and export. The 33 KV-and-over electricity transmission grid in Uganda is operated by UETCL.

The Department for Business, Energy and Industrial Strategy (BEIS) is the governmental department responsible for policy setting in the electricity sector. BEIS aims to ensure the UK energy system is secure and affordable whilst promoting sustainable energy in order to tackle climate change. 

The UK electricity market is a fully privatised and competitive electricity market organised around the following licensed activities: Generation, Transmission, Distribution, Supply (including smart metering) and Interconnection.

Trends and issues affecting the UK electricity sector includes Climate Change targets, the Energy White Paper (discussed further below), and the challenges arising from the Covid-19 pandemic. 

Key regulators

Great Britain’s electricity market (England, Wales and Scotland) is regulated by the Gas and Electricity Markets Authority (GEMA). GEMA consists of a panel appointed by the Secretary of State; however, GEMA is entirely independent from the government with no stakeholder involvement in GEMA’s regulatory or operational capacities. 

The day-to-day administration of GEMA is carried out by the Office of Gas and Electricity Markets (Ofgem). Ofgem follows the strategy and decisions set by GEMA and implements these policies in its regulation of companies which run gas and electricity networks. Notably, Ofgem is responsible for granting, modifying and enforcing licences, approving significant changes to the industry standard documents, price control regulation for the network businesses and tariff capping for energy supply companies.

In Northern Ireland, the renewables market is regulated by the Northern Ireland Authority for Utility Regulation (NIAUR). The NIAUR is a non-ministerial government department that protects the interests of the renewables, gas, water and sewerage consumers. Northern Ireland operates a wholesale electricity market independent to Great Britain, known as the single electricity market (SEM). The SEM in Northern Ireland was reformed in 2018 to comply with the European Third Energy Package to develop trading arrangements with the government of the Republic of Ireland, thereby forming the Integrated Single Electricity Market (I-SEM). The I-SEM model enables wholesale electricity to be traded on an all-island basis for regulatory purposes.

Key legislation

The main legislation regulating the electricity sector in the UK includes the following:

• Electricity Act 1989;
• Competition Act 1998;
• Utilities Act 2000;
• Enterprise Act 2002;
• Energy Acts of 2004, 2008, 2010, 2013 and 2016;
• Climate Change Act 2008;
• Electricity and Gas (Market Integrity and Transparency) (Enforcement etc.) Regulations 2013 (SI 2013/1389);
• The Electricity Capacity Regulations 2014 (including the Capacity Market Rules);
• Domestic Gas and Electricity (Tariff Cap) Act 2018.

Licences and industry codes

Companies engaged in the supply, generation, transmission or distribution of electricity must obtain a licence under the Electricity Act 1989, unless the relevant company is exempt either as an individual exemption or a class exemption under The Electricity (Class Exemptions from the Requirement for a Licence) Order 2001.

Licensed market participants must additionally apply to the relevant organisations in respect of the industry codes that must be complied with or become a party to the licence.

These industry codes include:

• Elexon – for the Balancing and Settlement Code (BSC);
• NGESO for the Connection Use of System Code (CUSC);
• Electralink – for the Distribution Use of System Agreement (DCUSA);
• Gemserve – for the Master Registration Agreement; NGESO for the Grid Code;
• the Energy Networks Association for the Distribution Code; NGESO – for the System Operator – Transmission Operator Code (STC); and
• SECAS – for the Smart Energy Code (SEC). 

Energy supply mix

The supply mix of electricity in Great Britain’s market in Q3 2021 was published and consists of the following (TWh/quarter):

• Coal – 1.38
• Oil – 0.29
• Gas – 27.97
• Nuclear – 9.63
• Hydro – 0.65
• Wind and Solar – 14.37
• Bioenergy – 7.88
• Other fuels – 1.92
• Net imports (interconnectors) – 7.65