The Electricity Act of 2005 calls for effective participation on the private sector in the electricity market in The Gambia. The National Energy Policy also set promotes this agenda.
The Electrciity Act of 2005 specifically makes provision for the following Licences:
Generation Licence: Allows a licensee to connect specified generation facilities either to the transmission grid at a grid receiving point or to a distribution receiving point. All Generation Licensees must sell their power to NAWEC as the owner of the Transmission System.
Distribution Licence: A Distribution licensee will receive electric energy deliveries from one or more grid delivery points and at one or more distribution receiving points. A Distribution Licence allows a company to distribute electricity to consumers within a defined geographic area.
Transmission Licence: means a licence granted by the Authority to a licensee to own or control, and operate, the transmission grid, but not to dispatch electricity over the transmission grid;
Dispatch Licence: This Licence give the holder Dispatch rights over generation licensees and others, if any, in order to meet the requirements of distribution licensees, direct consumers and others. Dispatch licences are essential in highly developed electricity markets.
A Licence is not required for electricity produced solely for own consumption within the same premises provided. A Distribution licence is also no required where a sub-metering arrangement is in place.
Furthermore in accordance of the Electricity Act, PURA has prescribed a thorough application process on which all applications submitted will be evaluated.PURA will consider a number of factors in evaluating a Licence application. These may include, for example, the availability of sufficient appropriate financial, technical competence and resources to ensure that the applicant will be able to comply with the Conditions of any Licence issued.
Moreover, PURA works closely with other national institutions such as GIPFZA, NEA etc. For example, an environmental impact assessment,EIA in accordance with the provisions of the National Enivironmental Management Act 1994, NEMA , is a statutory requirement for a Generation Licence application and thus an Environmental Clearance from the NEA must be submitted with any application form.