All legal entities engaged in market activities must obtain the relevant license for each activity, and for each facility if the subject market activity is to be performed in more than one facility, prior to the commencement of their market activities. EMRA has discretion to give one license to more than one facility based on the connection and physical status of the facilities.
Pre-licenses are mandatory in cases where the generation companies intend to generate electricity in more than one facility. However, the renewable energy generation facilities consisting of several structures and auxiliary buildings can be issued one pre-license or the generation license in cases where they all connect to the system at the same connection point.
The licenses are not transferrable, however, the merger and acquisition or spin of the license owner company and the assignment of the license rights by a bank or financial institution shall not be deemed as transfer of a license.
There are 8 types of activities which require licensing:
- Generation
- Transmission
- Distribution
- Whole Sale
- Retail Sale
- Export
- Import
- Operation
Exemptions:
- Aid Groups and generation facilities having no connection with transmission or distribution system
- Renewable energy facilities with an established capacity of 1 megawatt installed capacity or below
- Generation facilities established only for solid waste disposal plants of the municipalities.
- Micro-generation facilities and co-generation facilities which meet the productivity level determined by MENR.
- Generation facilities based on renewable energy using the electricity for its own needs without connecting to any transmission or distribution system.
Types of Licenses:
- Generation License
- Organized Industrial Site Generation License
- Transmission License
- Market Operation License
- Distribution License
- Organized Industrial Site Distribution License
- Supply License
Pre-License period shall not exceed a 24-month period of time unless force majeure conditions occur. This can be extended up to 30 months by EMRA. Licenses are given for a minimum period of 10 years and a maximum of 49 years. Pre- license applications shall be reviewed within ten days and in the case of any inadequacy, it must be rectified within fifteen days. Renewable energy facility owners intending to generate at most 1 megawatt of electricity and aid groups do not need to establish a company.
