Chapter 6. Policy Measures and Programs
6.2 Legal and Institutional Framework
6.2.1 Enacting the Renewable Energy Promotion Act
6.2.1.1 Background
To pursue a stable energy supply, eco-friendly conversion of energy structures, and reduction in GHG emissions through promoting RE deployment and invigorating the RE industry in sustainable manner, it is necessary to enact appropriate laws that can become foundations for government activities and private participation for RE deployment. Moreover, solidifying such laws and their guidelines is extremely important as it assures investors of the stability and growth potential of the RE market in Cameroon.
6.2.1.2 Objectives
It aims to lay out general directions and structure of the RE law, tentatively called the Renewable Energy Promotion Act (hereinafter “Promotion Act”), that would serve as a foundation for implementing RE- related regulations, establishing new organizations, and securing finances for RE deployment. It also describe major articles to be included, as well as the process to enact the Promotion Act.
6.2.1.3 Major Contents and Issues 6.2.1.3.1 Major articles to be included
The Promotion Act is proposed and enacted by the MINEE (or a public entity dedicated to implementing RE policies mandated by MINEE, which will be described below). The core articles that must be included in the Promotion Act are the followings.
Articles on the definition of RE and RE sources
Definition of RE and RE sources that would be eligible for government support and collection for statistics in accordance with the Promotion Act should be clearly described. The definition of RE in Article 63 of the Act on Electricity should be transferred to the Promotion Act.
Articles on organizations
It should include articles that lay foundation for establishment of new subsidiaries, proposed below, under MINEE and their responsibilities, tasks, scope of works and budgets related issues. In addition, it includes content concerning the organization and operation of a “Renewable Energy Council” (tentative), the inter-ministerial top decision-making body or control tower, which coordinates interests of various ministries and deliberates RE polices and the REMP, RE deployment plans for local governments, and other matters related to RE deployment.
Articles on periodic updating the REMP
The REMP should be updated periodically to reflect newly emerging challenges and changing market and regulatory conditions with regard to RE deployment. So, the Promotion Act should include articles that oblige the MINEE (or the implementing subsidiaries) to update the REMP. The contents of the articles should define the interval of updating, major contents of the REMP for updating, the process of updating and other matters. It should also have articles that oblige the local governments to formulate their own plan
Articles on budget and financing
The Promotion Act must have articles that lay grounds for securing budget necessary for RE deployment activities and specify the programs and entities eligible for allocation of the budgets. It is a crucial element of the Promotion Act that will guarantee stability and continuity of implementing RE deployment policies.
It is also important for inducing sustainable investments from market participants and investors, both domestic and foreign, by providing confidence on market and predictability on Government policies.
Articles on major policy measures and programs
Once the MINEE decides to pursue a set of the policy measures and programs suggested below, then the Promotion Act should include it to establish a legal status for it. In this way, possibility of each and every policy measures not being accepted by the Government could be significantly reduced in future.
Articles on permission of RE specialized companies
It should define a specific guideline for process of granting permission to RE specialized companies including a standard of qualification, if the MINEE decides to accept the specialized company program.
Selecting qualified companies is very important for preventing proliferation of sub-quality RE facilities in the market, which may damage market confidence, and, in turn, cause consumer dissatisfaction. Increasing level of public acceptance for RE is important in RE deployment.
Articles on development of RE Statistics
It should include contents related to the main entities and methods of generating RE statistics and the granting of rights to obtain information for smooth collection of RE statistics data.
Others
It should include articles related to other necessary items, such as human resource training, and maintenance obligation in addition to the abovementioned articles. The MINEE (or policy implementing subsidiaries defined below) should prepare the draft of the Promotion Act, with the final version to be concluded after opinion gathering processes, such as public hearings. Subsequently, the draft legislation is sent to the National Assembly to be enacted into a law.
6.2.1.3.2 Roadmap
To introduce the Promotion Act, a draft bill should be prepared and opinions should be gathered by 2019. By 2020, this bill should be passed into a law, laying the foundations for engaging in active execution of RE deployment after 2020. The enactment of the Promotion Act should be done in conjunction with
enactment of separate acts for creating subsidiary organizations suggested below. These subsidiary organizations should be referred in the Promotion Act.
❙Table 6-3❙ Renewable energy promotion law roadmap
2017 2018 2019 2020 2025 2025~
Bill preparation and opinion collection
Enactment
6.2.1.3.3 Financing plan for introducing the Promotion Act
A separate budget for implementing the Promotion Act is not required. However, some minor costs may be incurred in the process of formulating a draft, such as holding hearings and gathering opinions, and a budget for these costs may be set aside in advance.