Electricity Market Law

The Electricity Market Law (Law No. 4628) came into effect on 3 March 2001 for the purpose of unbundling, generation, transmission and distribution activities and to ensure progress towards a liberalised electricity market within the framework of fair, transparent and non-discriminatory market conditions. Within the framework of the Law, auto-producers are being considered and encouraged. At present, 113 auto-producers, mostly co-generation plants in industry, generate an annual power output of 18 billion kWh which constitutes 14% of total electricity production with an installed capacity of 3 350 MW. Applications for auto-producer plants with a total installed capacity of 8 750 MW have been received by the Ministry of Energy and Natural Resources (MENR). In 2007, the Energy Efficiency Law added a provision to the Electricity Market Law, exempting certain categories of power plants from the obligation to obtain licenses and establish companies. The exemption applies to: renewable energy plants with installed capacity of maximum 500kW; cogeneration plants with at least 80% overall efficiency; micro cogeneration plants with 50 kW installed capacity.