Recent Changes In The Legislation On License-Exempt Electricity Generation

The Regulation Amending the License-Exempt Electricity Generation Regulation (the "Amending Regulation")¹ has been issued by the Energy Market Regulatory Authority ("EMRA") and became effective on 23 March 2016. The Amending Regulation provides several important changes in relation to license-exempt electricity generation projects as explained below.

Main Features of the Amending Regulation

1. Share Transfer Restrictions

The Amending Regulation prohibits the transfer, directly or indirectly, of the shares of the license-exempt generation facility owners at the construction stage of the project. Accordingly, merger with other legal entities, demerger, and share transfer before the temporary acceptance of the generation facilities are prohibited while share transfers at the operation stage are permitted. This amendment will be applicable to both existing and future projects.