Just weeks after AMP Somalia advanced its national clean energy transition through a wide-ranging stakeholder workshop supported by the United Nations Development Programme (UNDP), National Electricity Authority (NEA) has now taken the next step: formalizing electricity providers under a unified national licensing system. Together, these milestones signal a coordinated effort to strengthen regulation, expand access, and accelerate Somalia’s energy transformation.
For decades, Somalia’s electricity sector has operated without a formal regulatory framework. Power provision was dominated by fragmented, privately run systems—often expensive, inefficient, and unreliable. Many households and businesses, particularly in rural and underserved communities, faced high costs and limited access, while the absence of licensing and tariff regulation left consumers vulnerable and discouraged long-term investment.
To address these systemic challenges, the NEA , under the leadership of the Ministry of Energy and Water Resources (MoEWR), has taken a historic step toward formalizing and regulating the sector. On November 1–2, 2025, NEA convened a two-day national consultation in Mogadishu to officially issue licenses to 20 Electricity Service Providers (ESPs) and validate Somalia’s first national Tariff Regulation Framework.
This milestone is achieved in collaboration with UNDP through the Africa Minigrids Program (AMP), supported by the Global Environment Facility (GEF). It marks the first time since the collapse of the central government in 1991 that ESPs are operating under a unified, legally recognized licensing system.
NEA formally recognized the support of the UNDP through AMP, which played a central role in bringing the Licensing Issuance and Tariff Regulation Ceremony to life. The regulatory body noted that the event “would not have been possible” without the logistical coordination, technical facilitation, and overall hosting support provided by the UNDP/AMP team.
Their contribution extended far beyond event support. NEA also highlighted AMP as a long-standing partner in strengthening Somalia’s energy governance by advancing national regulatory frameworks, deepening stakeholder engagement, and building institutional capacity across the sector. Through AMP Somalia, UNDP continues to champion access to clean, affordable, and reliable energy solutions, directly complementing their mission to create a transparent, accountable, and well-regulated electricity system. This collaboration remains a cornerstone of Somalia’s ongoing energy sector reform journey.
“The National Energy Authority (NEA), under the leadership of the Ministry of Energy and Water Resources, is officially issuing licenses to Electricity Service Providers (ESPs)”,stated NEA’s Director General. “This achievement reflects our collective dedication to building a transparent, accountable, and well-regulated electricity sector that delivers reliable and affordable power to Somali citizens.”
The licensing process, based in the Somali Electricity Act (2023) and NEA Licensing Regulations (2024), introduces clear service standards, reporting obligations, and consumer protections. It also establishes a predictable framework for tariff setting, enabling cost-reflective pricing that balances affordability with sustainability.
WESCO CEO Ahmed Abdirahman Abdikhayr (Keyse), one of the newly licensed providers, emphasized the importance of this change: “For us, this license represents a commitment to providing a reliable and transparent service. It formalizes our responsibilities to the communities we serve and gives us a clear framework for tariffs and service standards.”
The event also highlighted the alignment between regulatory reform and practical energy access initiatives. While NEA establishes the rules and oversight, partners like AMP and EU-GEED are supporting the deployment of solar and hybrid minigrids, installation standards, and digital tools such as the Electricity Regulatory Management Information System (eRMIS) to monitor compliance and performance.
By combining robust regulation with on-the-ground energy access initiatives, the collaboration between NEA, AMP, and other partners is paving the way for reliable, affordable power that meets the needs of communities across the country.
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