POWER AFRICA IN UGANDA

 

ENERGY SECTOR OVERVIEW

Uganda’s favorable enabling environment and broad presence of private sector investment presents a unique opportunity to deliver on Power Africa goals. Uganda is one of the few sub-Saharan African countries to have liberalized and financially viable energy markets, with generation, transmission and supply segments unbundled since 2001. There is an independent Electricity Regulatory Authority that undertakes sector regulation and oversight.

The largest distribution company, UMEME, is privately owned and has a 20-year concession for distribution and retail. The country, however, is divided into 13 rural service territories, and 6 of these are being managed by small distribution companies. Independent power producers (IPPs) currently account for nearly 60% of generation capacity. Still, Uganda has one of the lowest electrification rates in Africa, at approximately 19% in 2017.

GENERATION CAPACITY

  • Installed Capacity: 947 MW
    • Hydro: 645 MW
    • Thermal: 101.5 MW
  • Power Africa New MW to Date Reached Financial Close: 135 MW
  • Power Africa 2030 Pipeline: 1,924 MW

CONNECTIONS

  • Current Access Rate: 19%
    • Rural: 19% Urban: 23%
  • Households without Power: 6.9 million
  • Target: 1.5 million new connections by 2020
  • Power Africa New Off-Grid Connections: 768,533

INVESTMENT AND ENABLING ENVIRONMENT

Biggest Issues

  1. Lack of integrated power sector planning
  2. Lack of fully functional financial ecosystem

Power Africa Interventions

  1. Development of master plans
  2. Transaction advisory services
  3. Support to off-grid actors
  4. Development of digital finance services

 

POWER AFRICA’S ENGAGEMENT IN UGANDA

MW GENERATION

Power Africa continues to provide transaction advisory services to enable generation projects to come to financial close. Power Africa has helped bring significant new small hydropower capacity to financial close, and has identified more than 1,900 MW in the pipeline.

CONNECTIONS

Through USAID, Power Africa is supporting master planning efforts for 13 distribution company concessions, identifying potential for over 800,000 new on-grid connections and over 400 mini-grid sites. Power Africa is working with financial institutions and concessionaires to mobilize finance, enabling financing across the value chain. Power Africa is also helping pilot and roll out new and innovative off-grid product designs and payment platforms, especially those that tap into digital financial services, with the aim of reaching thousands of rural Ugandans with cleaner and productive electricity. To maintain momentum and scale up off-grid solutions, Power Africa and its partners are working to improve and/or create a supporting ecosystem for the off-grid market by launching a market accelerator to spur a vibrant marketplace of enterprises.

FACT SHEET

Last updated: November 20, 2018

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