The Electricity Act of 2016 aims at updating Suriname power market's regulations to improve the technical and financial situation of the sector, and allow for privatisations and enhancing the regulatory framework through the creation of the Energy Authority of Suriname and the publication of an Electricity Sector Plan every five years. The Act also phases-out retail price subsidies and introduce renewable energy tenders.
 
 The low electricity prices have been a major barrier to the update of renewables in Suriname. The Electricity Act thus aims at reducing subsidies while also improving energy efficiency. Renewable energy from solar and wind sources will benefit from a purchase guarantee. The Act also introduces net metering rules to enable decentralised production and marketisation of renewable energy.