Key Changes in DRC Electricity Sector Regulations and What They
Mean for Future Energy Projects.
Carl Mbeng | Principal Consultant, Energy Extractives & Climate Specialist | Email: carl@resourceprime.com
Introduction
The Democratic Republic of Congo (DRC) recently took a significant step in reforming its electricity sector with the recent enactment of Ordinance No. 25/025 of February 5, 2025. This amendment modifies Law No. 14/011 of June 17, 2014, as amended and supplemented by Law No. 18/031 of December 13, 2018. The latter has served as the country’s primary legal instrument governing the electricity sector over the past decade and has played a crucial role in its liberalization. However, the 2014 law has revealed notable gaps in addressing emerging challenges, particularly in renewable energy, grid integration, and rural electrification, thereby necessitating its modification through Ordinance No. 25/025.
The new ordinance seeks to modernize and expand the legal framework while providing greater clarity to procedures for project licensing and concessions, with the goal of simplifying processes and attracting private sector investment. This brief delves into the key aspects of the ordinance to highlight changes that may interest private sector stakeholders, development agencies, and non-governmental organizations (NGOs) working to improve electricity access in the DRC. It also examines what these changes mean for electrification efforts and assesses how they can drive much-needed private sector led investment.
Key updates to the 2014 electricity Law include the following:
- Official acknowledgment of renewable energy sources as vital to achieving electrification goals.
- A unique licensing framework for rural electrification projects
- Clarifying Institutional Roles in Concession Granting for Energy Projects
- Streamlining the Certification Process for Energy Infrastructure Projects.
- Enhancing Operational Efficiency and Resource Management in the Electricity Sector
Image: Image used for illustrative purposes. Source: Canva.com
Official acknowledgment of renewable energy sources as vital to achieving electrification goals.
One of the key reaffirmations introduced by Ordinance No. 25/025 of February 5, 2025, is the need to accommodate renewable energy development, energy efficiency, and grid interconnection. Though it may seem unusual, the concepts of renewable energy and energy efficiency were largely overlooked in Law N°14/011. In effect, there was a total absence of legal provisions regarding the development and promotion of renewable energies and green hydrogen, connection principles for integrating variable renewable energies into the grid, the storage of produced renewable energy, and the promotion and support of national industries and energy efficiency. With the energy transition becoming increasingly evident, the new ordinance fully recognizes renewables.
The recognition of renewable energy development, energy efficiency, and grid interconnection as key
priorities under Ordinance No. 25/025 offers significant benefits to private investors and project
developers. Primarily, by acknowledging the importance of renewable energy, the ordinance provides the basis for stable and transparent legal framework that was previously lacking.
This assurance reduces risks associated with regulatory uncertainty, making renewable energy projects more attractive to private investors seeking predictable environments for their capital. The ordinance explicitly highlights theimportance of storage, grid interconnection, and green hydrogen development. These areas open new avenues for innovation, technology investment, and partnerships. Private developers can seize opportunities in emerging sectors, such as energy storage systems and hydrogen production, fostering long-term growth and profitability.
One shortcoming of the new regulation, however, is the fact that it does not immediately provide a
detailed scope for renewable energies development. Instead, it states that a further decree, deliberated
by the Prime Minister in the Council of Ministers upon the proposal of the Minister responsible for
electricity, shall establish the implementation modalities related to the energy transition.
Hopefully, the administration handles this with urgency to ensure that this decree is enacted promptly, providing greater security for project developers and investors.
A unique licensing framework for rural electrification projects
The new regulations reaffirm the electricity sector’s licensing framework, which consists of five legal regimes: Concession, License, Authorization, Declaration, and Freedom. Each regime corresponds to a specific activity within the electricity value chain. Specifically, to the context of rural electrification projects, it provides that a developer may seek a single, unified license that covers the construction and operation of isolated networks. This special license allows for the integration of electricity generation, transmission, distribution, and marketing within a defined geographic area.
Traditionally, developers had to navigate multiple, often complex, regulatory processes for each activity. This change eliminates the need for separate licenses, saving time, lowering administrative costs, and making rural electrification projects more attractive to private sector players. With the entry into law of ordinance No. 25/025, investors and developers now have a better understanding of which regime applies to their activities. This ordinance will go a long way to regulatory ambiguity, enhance investor confidence, and help mobilize financing for projects in underserved areas. In addition, if implemented correctly, this can speed up project approvals and foster more locally appropriate energy solutions. It is also expected to attract more private investment into rural electrification, especially from local entrepreneurs, social enterprises, and off-grid energy companies.
Clarifying Institutional Roles in Concession Granting for Energy Projects
One of the key reforms introduced in the 2025 ordinance is the clarification of institutional responsibilities for granting concessions. This reform addresses longstanding debates surrounding the roles and authorities of the central government (specifically the Ministry in charge of electricity), Provincial Governors, the Electricity Sector Regulatory Authority, and the Rural Electrification Agency in the licensing process. While some questions remain unresolved, the new regulations confirm that concessions are granted by either the central government or the provincial authorities, upon recommendation of the electricity sector regulatory Authority, depending on the project’s scope.
Under these regulations, production concessions for energy sources or electrical networks with a capacity of 5 MW or more are issued by the central government (the Ministry in charge of electricity). For projects below this capacity, the authority to grant licenses lie with the provincial governments. Similarly, transmission concessions for electric lines with a voltage of 36 kV or higher are exclusively granted by the central government through the designated competent authority. The regulations also mandate that concessions must align with the energy map established by a ministerial decree from the Minister in charge of electricity.
This framework holds significant value for developers, offering clearer guidance on the institutions to approach during their endeavors. However, the licensing framework provisions remain incomplete, necessitating an additional ministerial decree to provide further clarification and details.
Streamlining the Certification Process for Energy Infrastructure Projects.
Under the updated regulations, the commissioning of infrastructure for electricity production, transmission, export, and distribution requires obtaining a certificate of conformity issued by the Electricity Sector Regulatory Authority (ARE). ARE, with the support of an independent expert, has one month from the submission date of the certificate request to conduct the necessary tests and inspections and issue the certificate to the operator. If ARE does not respond within this timeframe, the certificate of conformity is automatically deemed granted once the applicant is able to acquire a formal certificate from the Minister in charge of electricity. This reform is particularly relevant as it accelerates the commissioning process for energy projects, reducing bureaucratic bottlenecks and uncertainties. By streamlining the certification system and ensuring timely decisions, it encourages faster deployment of energy infrastructure, enabling the sector to meet growing demands and contribute to sustainable development goals efficiently.
Enhancing Operational Efficiency and Resource Management in the Electricity Sector
The new ordinance establishes two pivotal institutions: The One-Stop Shop for the Electricity Sector and the National Dispatching Service. The One-Stop Shop for the Electricity Sector is created as a Public Establishment under the supervision of the Minister responsible for electricity. Its primary mission is to streamline interactions between electricity operators and the government, serving as a centralized point for the collection of fees, taxes, and royalties in the electricity sector. While much is not said about the National Dispatching Service, it is expected that it will focus on managing the dispatch of electricity and quality of service.
The creation of these institutions reflects the government’s commitment to enhancing operational efficiency, transparency, and collaboration within the electricity sector, which is essential for meeting the nation’s growing energy needs.
Conclusion:
The amendment to the legal framework governing the electricity sector represents a significant step forward in addressing the regulatory and operational challenges in the energy landscape. By introducing measures to standardize renewable energy systems, streamline licensing processes for rural electrification projects, clarify institutional responsibilities’ when granting concessions, and establish new institutions, the reform aims to enhance efficiency, transparency, and sustainability. However, as highlighted by key stakeholders, the success of this ambitious framework hinges on careful implementation and stakeholder engagement. Addressing concerns about potential bureaucratic hurdles and regulatory overlaps through inclusive consultations will be vital in ensuring that the new regulations achieve their intended objectives and foster confidence among investors and operators. As the electricity sector evolves, balancing ambition with practicality will be essential for driving the nation’s energy transition while meeting growing demands.
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