Uganda - Energy Uganda - Energy
Overview
As the government prioritizes increasing Uganda’s energy production, foreign investment in the sector has increased. The government recently commissioned the 183MW Isimba Hydro Power Dam, and the 600 MW Karuma Hydro Power Dam is slated to come online by December 2019. The addition of these dams is projected to provide Uganda with about 380MW of excess power generation capacity by 2020. Despite these projects, Uganda has one of the lowest electrification rates in Africa. In urban areas, 55 percent of Ugandans have access to electricity, however, access drops to 10 percent in rural areas, and is only 19 percent nationwide. Uganda has approximately 2,260km of transmission lines, which the government aims to double. As investment in transmission is still insufficient, some existing generation capacity cannot be distributed. Additional investment is also needed to enable export of electricity to the region. Uganda’s Electricity Regulatory Authority regulates licensing, generation, transmission and distribution. Uganda’s power tariffs are set on a quarterly basis and the average tariff to consumers is $0.17/kWh ($0.11/kWh for industrial users), with the first 15 units of power subsidized. Umeme Co. Ltd. is the largest energy distributor in Uganda, distributing 97 percent of all electricity in the country. USAID’s Power Africa has been providing transaction advisory services to generation projects to reach financial close or commercial operations, but is now focused on increasing access to electricity. The bulk of Power Africa’s support targets innovation in product development, last mile market entry and development, and the promotion of innovative digital payment. More about Power Africa is available at: https://www.usaid.gov/powerafrica/uganda.Opportunities
On the generation side, investment opportunities remain in small hydropower projects. On the distribution side, with Power Africa support, the government is seeking private sector investment to develop mini-grids for over 650 target comunities. The government is planning for at least two additional large hydro power stations along the River Nile. There are another 11 small hydro station sites stated by the Electricity Regulatory Authority.Web Resources.
Uganda Electricity Regulatory Authority
Uganda Electricity Transmission Company Ltd
Rural Electrification Agency Uganda
Power Africa Uganda
Umeme (Power Utility Company)
Uganda Ministry of Energy and Mineral Development
Directorate of Geological Survey and Mines of Uganda
Renewable Energy Investment Guide
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