Electricity (Licensing) (Amendment) Regulations, 2026 (No. 2)
Electricity licence fees are reset: US$20 to apply, no licence fee for plants up to 10MW or own-use generation, and technology-based fees above 10MW — solar US$2,875 plus US$1,437.50 per 25MW.
The Minister of Energy and Power Development has amended the Electricity (Licensing) Regulations, 2008, adding definitions for commercial projects, generation for own consumption, grid-connected, non-grid-connected and non-commercial off-grid plants, and replacing the Second Schedule of fees. Licensed companies pay an application fee when applying and a licence fee after approval. All amounts are in US dollars excluding VAT.
Non-renewable plants: the application fee is US$20. Commercial grid and non-grid plants up to 10MW pay no licence fee; above 10MW the fee is US$10,000 fixed plus US$5,000 per 25MW or part thereof. Own-consumption and non-commercial off-grid plants pay no licence fee.
Renewable plants: the application fee is US$20 and own-consumption plants pay no licence fee. Commercial projects below 10MW pay nothing; above 10MW they pay a fixed fee plus a variable fee per 25MW or part thereof — solar PV US$2,875 plus US$1,437.50, biomass US$7,500 plus US$3,750, small hydro US$6,875 plus US$3,437.50, geothermal US$9,000 plus US$4,500, and wind US$3,750 plus US$1,875.
Transmission, distribution and supply licences each carry a US$20 application fee, with licence fees of US$60,000 for primary transmission and for primary distribution, US$50,000 for secondary transmission, US$5,000 for secondary distribution, US$50,000 for bulk supply and US$40,000 for retail supply. Amending, transferring or renewing a licence costs US$20 to apply plus a US$2,000 fee.
Application and licence fees are non-refundable, and applicants meet advertisement costs. The licence fee is a once-off payment valid for the life of the licence; if it is not paid within three months of approval, ZERA may reverse its decision. The 2021 amendment in S.I. 101 of 2021 is repealed.
What changed
- New Second Schedule of electricity licence fees in US dollars excluding VAT.
- US$20 application fee across licence types.
- No licence fee for commercial plants up to 10MW, own-consumption plants or non-commercial off-grid plants.
- Renewable plants above 10MW pay technology-based fixed and per-25MW fees.
- Licence fees are once-off, and approval may be reversed if the fee is unpaid within three months.
- Repeals S.I. 101 of 2021.
Who this affects
- Independent power producers
- Solar, hydro, biomass, geothermal and wind developers
- Transmission, distribution, bulk and retail supply licensees
- Businesses generating electricity for their own use
Plain-language summary — not legal advice. Always read the full instrument.