Energy Licenses and Licensing Procedures

The terms and conditions of licenses will vary depending on whether it is a license for generation, transmission, distribution or supply. In most instances, a license will contain the following sections: Technical Conditions, Financial Requirements, Rights and Obligations of Licensees, Environmental Standards, Customer Service Standards, Complaint and Dispute Procedures and Fines and Penalties.

This section offers resources and information about energy licenses as they relate to potential public-private partnerships in the power sectors.

Guidance On Licenses For Regulators

USAID has been very active in providing technical assistance to new electricity regulators in Eastern Europe. See below two documents -one prepared for the Polish electricity regulator and the other for the Energy Regional Regulatory Association (an association of energy regulators in Eastern Europe) that are primers on the legal and economic functions of licenses.

Applications For Licenses and Licensing Procedures

Applications--General and for Retail and Wholesale Service

EWURA - Tanzania

NERC - Nigeria

ERA - Uganda

Sri Lanka

Sample Licenses

Generation

Most generation licenses are issued on a provisional basis prior to actual operation. A difficult issue for many regulators is when to terminate a provisional license if the license holder fails to make sufficient progress in constructing and operating the planned facility. If the developer proposes to sell under a long term PPA, the regulator will often be required to make a separate regulatory determination as to the reasonableness of the terms and conditions of the proposed PPA. This additional regulatory action introduces an element of uncertainty for license holders.

EWURA - Tanzania - This is an example of a license in a power sector where there is no wholesale or retail competition.

OFFER (now OFGEM) - England and Wales - The provisional standard license conditions (attached to the Energy Bill 2000) for a generator operating in a power sector where there is both retail and wholesale competition - Offer Draft Standard Licence Conditions for Generation (2000).

Wind Power

Turkey

Link to Generation Licenses for 8 wind power plants in Turkey owned by renewable energy company Polat Enerji (all in Turkish)

Transmission and Bulk Supply

Distribution (in sectors with no retail competition)

Distribution (in sectors with retail competition)

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Updated: November 19, 2020

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