Somalia seeks to light up the nation with electricity reforms

The country's Director General of the National Electricity Authority (Nea), Abdullahi Dayib Ahmed, together with the Deputy Director General of the NEA, Mohamed Amin, and the Minister of State for Energy and Water Resources, have concluded a consultation meeting with electricity service providers from the Federal Member States on the licensing process for electricity service providers.

The two-day consultation meeting which was held between the agency and electricity service companies discussed compliance with the recently implemented Electricity Service Regulations.

Mr Ahmed expressed his appreciation to the Mogadishu power companies and regional governments for their active participation in the consultation meeting. He also commended their commitment to the Electricity Service Licensing Plan, which will be fully implemented this year.

“The companies' positive engagement in the consultation and their willingness to adapt to the new patent issuance process under our agency's control are greatly appreciated. This continued cooperation will be instrumental in successfully implementing this process," Mr Ahmed said.

According to Mr Ahmed, the licensing process holds immense importance for the country's development in several ways.

Firstly, licenses will introduce much-needed order and accountability within the electricity sector. Currently, the market might be fragmented, with various providers operating under unclear guidelines. Licences will establish a formal framework, ensuring companies meet specific safety and financial standards. This not only protects consumers but also fosters trust and encourages investment in the sector. With clear licensing procedures, reputable companies are incentivised to enter the market, bringing expertise and resources to improve service quality and expand access to electricity for Somalis.

Second, licensing paves the way for a more efficient and competitive electricity market. Defined licence categories can encourage specialisation and innovation within the sector.  Imagine dedicated companies focusing solely on generation, transmission or distribution, each striving to optimise their area of expertise. This fosters healthy competition, ultimately leading to more efficient service delivery and potentially lower costs for consumers. The licensing process itself can also be designed to encourage the use of renewable energy sources, in line with Somalia's long-term sustainability goals. 

The issuance of electricity service licences is a critical step towards a better future for Somalia's electricity sector, promising greater stability, efficiency and potentially a cleaner energy future.