Source/author : Associaçao Lusofona de Energias Renovaveis
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In institutional terms, the Ministry of Energy, Industry and Natural Resources (Ministério da Energia, Indústria e Recursos Naturais, MEIRN), through the Directorate-General for Energy (DGE), is the entity responsible for the regulation and supervision of the energy sector in Guinea Bissau. Meanwhile, there are other key institutions, the most relevant ones being the Regional Energy Offices (Delegacias Regionais de Energia, DRE) and the National Electricity and Water Company of Guinea Bissau (Empresa Pública de Electricidade e Água da Guiné-Bissau, EAGB). The main challenges of the MEIRN and DGE are the improvement of the coordination between the institutions of the sector and the energy planning.
Despite announced plans, currently there is no regulatory authority specifically for the electricity sector. The creation of a Decentralized Rural Electrification Agency, which will support the DGE in the implementation and monitoring of the national energy plans, is also envisaged. After the formation of these entities, it will be necessary to define the responsibilities of each institution, taking into consideration the current coordination gaps.
The legislative framework is composed of two laws that regulate the energy and electricity sector, namely Decree-Laws No. 2/2007 and 3/2007. Decree-Law No. 2/2007 defines the structure of the energy sector, its organisation and the provisions applying to the different forms of energy. Decree-Law No. 3/2007 regulates the production, transport, distribution, import and export of electrical energy within the country. However, the application of the regulations must be reinforced and the legislative framework needs to be clarified to allow for improvements in its application. A draft law to be ratified (No. 2013-21), specifically for creating a framework for- and promoting the renewable energies sector. No specific fiscal and investment frameworks or provisions exist for the energy sector currently.
Harmonization at national level is non-existent for applied energy tariffs and there are large divergences between prices in the capital Bissau and the inland regions of the country. Besides the EAGB, the main producers are the public production centres in the regions (most of them however not operational) and other independent producers in private or community hands.
The technical procedures to be followed for project licensing are not clear and a harmonisation of the processes will be needed to facilitate the implementation of projects. The creation of the new legal framework and the new system of concessions will make it possible to overcome this barrier. The provisions for environmental licensing are defined by Law No. 10 of 24/2010.