In general terms, the New Electricity Law is intended to:

  • Extend the conditions for the opening of the electricity generation and supply market to the private sector;
  • Ensure increased and universal access for all users to quality and reliable electricity, especially from renewable sources;
  • Promote the continuation of the electrification of the country, reiterating the focus on things such as self-consumption, storage and mini-grids.

Most important amendments

Private initiative access to electricity sector activities

Law 12/2022 comes in the era of regulation and in the context of the major objectives of universal electrification and energy transition.

The current Five-Year Plan 2020-2024 established a strategy to increase renewable production capacity, by promoting public and private investments in new production infrastructures and new network availability, especially transmission.

The New Electricity Law broadens this new strategic design, in the wake of the most recent developments in the previous legal framework, including the tenders launched to build and operate hydroelectric and solar photovoltaic power plants.

Hybridisation and storage are allowed, as is the sale of surplus electricity to the public network

Thus, private access to electricity generation and supply activities is guaranteed to a greater extent and, although dependent on state concessions (including in the form of public-private partnerships), it is no longer subordinated to the overriding interests of the state. However, it is still necessary to safeguard national interests.

Renewable energies: awarding of concession by direct award

The activities of production, storage, transport, distribution and/or sale, as well as the construction, operation and management of electrical facilities require a concession.

One of the major changes introduced by the New Electricity Law concerns the simplified procedure for implementing electricity generating centres using non-hydro renewable sources.

In fact, as far as electricity production is concerned, access to the concession is differentiated according to the primary source to be used:

  • Fossil and hydro energy: the concession is granted through a public tender;
  • Renewable energies: the concession may be granted by direct award when it concerns electricity production using non-public domain assets, which may include energy from solar and wind sources, provided that the infrastructures in question are not located on public domain land.

Renewable energies: hybridisation

The New Electricity Law expressly opens the door to electricity production through hybrid systems by referring to the possibility of hydroelectric production on a "simple or hybrid basis, with other renewable energy sources ".


Energy storage is regulated for the first time. It may be autonomous or coupled with other supply activities, and it may provide system services and contribute to the balance and quality of the system.

The regulation of storage is referred to in a separate statute, so the further detailing of this legal framework has yet to be completed.

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