The new law creates a national framework to attract investment, expand access, and protect electricity consumers.
Somalia has enacted Law No. 2, the Electricity Law. The law establishes a comprehensive legal and administrative framework for the country's electricity sector.
The Electricity Law was introduced to bring order to an energy sector that had long operated without unified rules. Its purpose is to attract investment, encourage fair competition, protect consumers, and expand access to electricity across the country.
Law No. 2, the Electricity Law was enacted and entered into force on March 8, 2023.
Reliable electricity is one of the foundations of economic growth, yet Somalia's energy sector had developed without a clear legal structure. The Electricity Law was designed to create a regulated market that supports investment and serves consumers fairly.
Article 3 (Objectives of the Law) sets out the law's broad goals, including developing a national energy policy and creating the institutions needed to manage the sector. Article 4 (Scope of the Law) confirms that the law applies nationwide and protects the rights of electricity companies, consumers, and investors.
At the centre of the new framework is a dedicated regulator. Article 11 (Establishment of the Authority) creates the National Electricity Authority to regulate and manage the sector, and Article 26 (Licensing) requires that all electricity generation, transmission, and distribution activities be licensed by that Authority.
The law looks to the future of energy supply. Article 31 (National Electrification Strategy) requires the Ministry to develop a national plan to expand access to electricity, while Article 34 (Renewable Energy) promotes the use of solar, wind, and hydropower.
Consumer protection is addressed directly. Article 55 (Electricity Tariffs) requires the Authority to issue regulations setting fair tariffs and service fees, balancing the interests of providers and consumers.
The Electricity Law matters because it gives Somalia's energy sector a clear regulatory foundation for the first time. Licensing, a dedicated regulator, and a national electrification strategy bring predictability that encourages investment and expands access to power.
“A regulated energy sector is essential to economic development and daily life alike. By creating a national regulator, clear licensing rules, and a strategy to expand access, this law gives investors confidence and gives consumers protection.”
, Asha-Kin F. Duale, LL.M. (Master of Laws), LL.B. (Bachelor of Laws)
Managing Partner at Mogadishu Law Office
This release is provided for general information and does not constitute legal advice. Professional legal advice should be obtained before acting on any matter discussed here.