Uganda has launched feasibility and environmental studies for the 400MW Kiba Hydropower Project as government moves to avoid a return to the crippling electricity shortages that once constrained the country’s economic growth.

The proposed hydropower station will be situated at the confluence of the Kiba River and the Victoria Nile, roughly 35 kilometres upstream of the boundary of Murchison Falls National Park, placing the project close to one of Uganda’s most ecologically sensitive river systems.

Energy officials say rapidly rising industrial demand, expanding regional export obligations and surging interest from energy-intensive industries such as data centres are tightening Uganda’s electricity supply margins and increasing pressure for new generation capacity.

Speaking earlier this week during a stakeholder meeting at Amber House, Energy Minister Ruth Nankabirwa said the commencement of the Kiba feasibility study marks a critical step in securing Uganda’s future energy needs and supporting long-term industrialisation.

The move reflects growing concern within government about avoiding a repeat of the severe power shortages and rationing that characterised the late 1990s and early 2000s, when Uganda was forced to rely heavily on expensive thermal generation to stabilise supply.

Although Uganda’s installed generation capacity currently stands at about 2,094MW, officials say dependable firm capacity is closer to 1,450MW because of hydrological variability, transmission constraints and intermittency from solar generation.

According to data from Uganda Electricity Transmission Company Limited, peak system demand reached 1,337MW in February 2026, leaving only a narrow reserve margin.

Nankabirwa said electricity demand growth reached nearly 20 percent for domestic consumption in 2025 and 21 percent across the wider national grid, driven largely by energy-intensive industrial users including steel and cement manufacturers.

Officials also disclosed that proposed data centre investments alone have submitted electricity requests amounting to 887MW, adding significant pressure to future supply planning.

Uganda is simultaneously expanding its regional electricity trade commitments.

The country exported nearly 270MW of electricity to Kenya, Rwanda and Tanzania in February, while Kenya has already requested an increase in imports to 300MW by 2027.

Government projections indicate Uganda could face a 40MW electricity deficit during the 2025/26 financial year, rising to more than 217MW by 2027/28 if new generation projects are not accelerated.

Officials warn that failure to close the gap could force the country back into costly emergency interventions including thermal generation and load shedding.

The Ministry of Energy estimates the financial exposure from power shortages could exceed UGX 416 billion in unrealised economic output, while additional thermal generation purchases could cost up to UGX 1 trillion and ultimately increase electricity tariffs for consumers.

Nankabirwa said while solar investments remain important, they cannot fully substitute stable baseload hydropower generation needed to sustain industrial growth.

“The country must move decisively to secure firm generation capacity that can support long-term industrialisation and economic transformation,” she said.

The Kiba project has been prioritised under National Development Plan IV and the ruling National Resistance Movement manifesto as part of Uganda’s broader energy expansion strategy.

Government is also establishing a multi-sector technical committee involving the finance, water and environment ministries alongside agencies including National Environment Management Authority, Uganda Wildlife Authority, Uganda Electricity Generation Company Limited and UETCL to oversee implementation.

The committee will simultaneously coordinate the development of the Kiba, Ayago Hydropower Project and Oriang Hydropower Project projects in an effort to fast-track approvals and reduce delays.

Energy ministry Permanent Secretary Irene Bateebe directed the consultants to prioritise biodiversity protection and underground engineering alternatives during the study phase because of the project’s environmentally sensitive location along the Nile corridor near Murchison Falls National Park.

The feasibility study is being conducted by a joint venture of Italian and Iranian engineering firms, which officials say will assess the project’s technical, economic and environmental viability before implementation.

Current plans envision a 400MW run-of-river hydropower station capable of generating approximately 2,686GWh annually with power evacuated through a 400kV transmission system.

Engineers are also examining underground powerhouse configurations and alternative transmission routes to minimise environmental disruption within protected wildlife areas.

The Kiba project traces its origins to a broader hydropower master plan funded by the Japan International Cooperation Agency and completed in 2011, which identified Kiba, Ayago and Oriang as key future hydropower sites after the development of Karuma Hydroelectric Power Station and Isimba Hydroelectric Power Station.

Officials say the latest study has been compressed from 18 months to 14 months in a bid to accelerate delivery timelines amid growing urgency over Uganda’s future electricity needs.

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Announced by the Minister for Energy and Mineral Development, Hon. Dr. Ruth Nankabirwa Ssentamu, during a media briefing at the Uganda Media Centre on Tuesday, the programme begins with the blending of premium motor spirit (commonly known as petrol) with 5pc ethanol (E5), a move government says will reduce dependence on imported fossil fuels while boosting local industry.

“This programme is not just about introducing a new fuel type; it is about creating a more sustainable and self-reliant economy,” Minister Nankabirwa said, highlighting the multi-dimensional benefits of the initiative. “We are strengthening energy independence, supporting farmers, creating jobs, and reducing greenhouse gas emissions.”

Under the new programme, ethanol derived from agricultural produce—such as maize, cassava, and sugarcane—will be blended into fossil fuels at a ratio of 5pc. This is expected to gradually scale up to 20pc, in line with targets outlined in the Biofuels Act.

The launch marks the start of a six-month incubation period that runs until December 31, 2025, during which industry stakeholders, particularly oil marketing companies, are expected to fully adapt to blending standards and operational readiness. The Ministry of Energy has assured the public that the country is well prepared for this transition.

In a clear nod to Uganda’s “Buy Uganda, Build Uganda” (BUBU) policy, all ethanol for the blending programme will be sourced from local producers. According to the Ministry, licensed ethanol suppliers currently have a production capacity of 78.5 million litres annually—a figure projected to rise significantly with further investment.

Key players in the ethanol value chain include Pro Industries, Kakira Sugar Ltd, G.M. Sugar Ltd, Hoima Sugar Ltd, and Bukona Agro-Processors Ltd. The Ministry also revealed that four blending facilities have been licensed at major border entry points:

• Modern Energy Ltd at Busia (49 million litres/month capacity),

• Bukona Agro Processors Ltd at Malaba (48 million litres/month),

• Afro-Kai Ltd at Mutukula (6–8 million litres/month), and

• Lake Victoria Logistics in Kawuku, Entebbe (10 million litres/month).

Together, these facilities will handle and blend around 110 million litres of fuel annually, beginning with the initial 5% ethanol-to-fuel ratio.

Government officials believe the benefits of the programme will be felt across several fronts. First, it is expected to stabilise agricultural markets by creating new demand for crops such as cassava and sugarcane. Farmers and agro-processors are expected to benefit from increased prices, expanded markets, and a more stable income stream.

Second, biofuel blending is projected to reduce fuel prices in the medium term. The Energy Ministry has analysed ethanol pricing trends over the past decade and concluded that the inclusion of ethanol in fuel will lead to cost efficiencies and improved combustion performance in engines.

The government has also removed taxes on denatured ethanol for both fuel and cooking use, making the product more affordable and incentivizing its adoption.

Environmentally, the programme is expected to make meaningful contributions to Uganda’s climate goals. Ethanol, being a renewable biofuel, produces fewer carbon emissions compared to fossil fuels. By gradually displacing a share of petroleum-based fuels, the programme supports Uganda’s Nationally Determined Contributions (NDCs) under the Paris Agreement.

“Biofuels offer a cleaner alternative that improves air quality, lowers greenhouse gas emissions, and supports our national climate action goals,” Nankabirwa emphasized.

Beyond domestic benefits, officials say Uganda’s biofuels programme could open up opportunities in regional and international markets. With the European Union already mandating a 2pc SAF blend in aviation fuel by 2025—rising to 70pc by 2050—Uganda could eventually export ethanol-based fuels, especially for aviation.

The country’s agricultural potential and existing industrial base position it well to become a regional supplier. “We are already receiving interest from investors,” the Minister revealed, adding that the blending programme could become a springboard for expanding Uganda’s clean energy exports.

To ensure safety and quality, the Uganda National Bureau of Standards (UNBS) has finalised national standards for both blended fuels and ethanol. The Energy Ministry has also put in place fuel marking systems and quality assurance protocols to prevent adulteration and ensure transparency throughout the supply chain.

Consumers can therefore expect blended fuels to meet all performance and safety requirements, with officials noting that ethanol-blended petrol often results in cleaner combustion and improved engine performance.

Formal Launch Set for August

Although the technical launch of the blending programme has taken place, the Ministry plans a more formal national launch event in August 2025. Minister Nankabirwa invited stakeholders and the media to join in that occasion, which will highlight Uganda’s progress in green energy and sustainable development.

“This is a collective effort,” she said. “We call on oil marketing companies to fast-track their readiness and on all Ugandans to embrace this cleaner, locally sourced energy alternative.”

The biofuels blending programme is the latest addition to a series of energy reforms in Uganda aimed at diversifying the energy mix, increasing local content, and reducing the environmental footprint of fossil fuels.

With supportive legislation in place, operational infrastructure developing quickly, and growing interest from private sector players, the initiative could be a catalyst for broader changes in Uganda’s energy and agricultural sectors.

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A sunny weekend in northwest Europe plunged power prices in the region to hundreds of euros below zero on Sunday afternoon as solar generation soared.

Spot power prices in Belgium sank to as low as -$302 (-266 euros) per megawatt-hour (MWh) between 1 p.m. and 2 p.m. on Sunday, according to data from Epex Spot SE cited by Bloomberg.

During the same hour, power prices in Netherlands plunged to -$215.60 (-189.90 euros), while prices in Germany dropped to -$147.40 (-129.81) per MWh.

Negative power prices, while beneficial for some consumers in some countries, generally discourage investments in new capacity as renewable power generators don’t profit from below-zero prices.

The more frequent occurrences of negative prices amid soaring solar output aren’t conducive to increased investment in generation only, and highlight the need of energy storage solutions to store the excess power and discharge it at evenings when it’s most needed.

Solar generation capacity and output in Europe have surged this decade, especially after the Russian invasion of Ukraine cut off many EU countries from Russian pipeline gas deliveries. The EU aims to ditch Russian gas dependence by 2027 and has been racing to build renewable energy capacity.

However, without adequate and proportionate battery storage buildout, Europe risks even more frequent negative price events that are loss-making for renewable energy generators.

Overall, electricity prices in Europe are falling this spring from two-year highs in the winter of 2025 as natural gas prices fall and renewable power generation jumps. The end of the winter, the recovery of wind power generation, and the rise in solar output in the springtime have now more than halved Europe’s wholesale spot power prices compared to the highs seen early this year.

Solar output in Europe is soaring and is set to boom in the summer. But the volatile gas market could begin pushing power prices up later this year with the coming of the next winter.

By Charles Kennedy for Oilprice.com

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The world’s 13^th largest economy and specifically President Yoon Suk Yeol, will be hosting the African visitors under the theme: ‘The Future We Make Together: Shared Growth, Sustainability, and Solidarity’.

On countless occasions African politicians, technocrats and academicians have touted the rapid economic success of South Korea since the late 1960s, as something to admire and emulate. Nevertheless no African country has come even close.

South Korea is the home to the world’s top memory chip makers Samsung Electronics and SK Hynix. Africa meanwhile, is an important source for many of critical minerals needed for semi-conductor chip production and other inputs to make batteries for electric vehicles.

There have been concerns in North America, Europe and Japan, over the Chinese dominance in the raw inputs used in the production of products needed to make the energy transition in light of climate change. Towards the end of last year, China imposed export controls on high-purity and spherical graphite used in EV batteries and semiconductor equipment.

It makes sense for the South Koreans to not only raise their profile across the continent following the increasingly dire economic situation in North Korea, but also work towards negotiating for future supply of these minerals.

Recently, Posco International, a major South Korean steel maker, confirmed arrangements with mining companies in Madagascar and Tanzania to ensure the supply of graphite used in the production of batteries. One IMF study estimated that sub-Saharan Africa holds about 30pc of the volume of proven critical mineral reserves found across the world.

The upcoming summit will feature discussions on collaborative solutions to promote collective strength and solidarity for sustainable development, with a focus on tackling global challenges such as climate change, food security, supply chain stability, and health security.

Designed to be a comprehensive platform for discussion and engagement, the Summit will feature not only a Summit session for the heads of state and international organizations, but also a series of conference sessions across a wide range of topics, including business, agriculture, ICT, forestry and desertification, vaccine and health security, tourism, energy, and more.

According to a recent survey done by the Korea-Africa Foundation, more than two-thirds, or 68.9 pc of Koreans assessed future Korea-Africa relations positively.  The potential of the African continent as seen by the Korean public has jumped to 84.4 pc from 72.5 pc in 2020. Meanwhile, 67.7 pc of Koreans regarded Africa as a partner for economic cooperation, which showed a significant increase from 47.4 pc two years back. The Foundation is an affiliate of the South Korean foreign ministry.

In an interview with a local daily in Seoul, Deputy Minister for Political Affairs Chung Byung-won said, “African countries are no longer merely recipients of aid. They are partners with whom we must collaborate for the future.”

He said, “This summit will serve as a significant turning point in establishing a long-term, sustainable partnership for mutual prosperity and coexistence between Korea and Africa. In particular, we aim to leverage the strengths of both sides to create synergies that foster joint growth and build a sustainable future together.”

The 2024 Korea-Africa Summit is coming in the wake of the 7^th Korea-Africa Economic Cooperation Ministerial Conference held in September 2023. The African Development Bank (AfDB) and Korean government signed two agreements, valued at $28.6 million, to boost Africa’s development agenda.

This funding is primarily for supporting energy access, agricultural transformation, and knowledge and capacity-building across several African countries. It is being disbursed through the African Development Bank Group in three installments of $4.6 million in 2023, and $24 million in 2024 and 2025. The funding complements $600 million in co-financing under the Korea-Africa Energy Investment Framework Korea agreed between the AfDB and the Korean government in 2021.

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However, we refuse to let the world set the timing for when Africa will ease up on oil and gas exploration and production. We are convinced that oil and gas production, when managed strategically, provides a pathway for economic growth and energy security, and we are determined to help Africa realize those benefits.

African countries have every right to set the timing for their energy transitions. And like nations around the world, African states will be exercising those rights.
The world must understand that African countries cannot be on the same energy transition timeline as Western countries. Africa still needs time – time that the Western world has already had and, frankly continues to milk – to resolve energy poverty and industrialize.

In 2021, global CO2 emissions hit 37.12 billion tonnes. China ranked first in contributing 11.47 billion tonnes; the entire continent of Africa contributed 1.45 billion tonnes, only 4% of global carbon emissions. In fact, over the last two decades, Africa’s total contribution to global greenhouse gas emissions has never been above 4% — by far the smallest share in all the world. Africa has the lowest per-capital emissions of all continents, averaging 1 tonne of CO2 emitted annually by each individual. The average American emits as much CO2 in one month as the average African does in an entire year.

And yet, Africa is disproportionately being punished for the climate catastrophe that, let’s be honest, was initiated and is perpetuated by Western and developed economies.

While we at the African Energy Chamber agree that it’s important to develop affordable and sustainable green technologies to supply our energy, we strongly disagree with being pigeonholed into accepting the West’s one-size-fits-all timeline.

I hear from Africans who are skeptical about the benefits of oil and gas because they have seen the problems caused by the energy sector. You could make the same arguments about the Internet, which has been blamed for harming social relationships, decreasing our safety and security, and damaging children’s cognitive development. Yet, used wisely, the Internet does considerable good as well, and I’m not hearing widespread calls to get rid of it. My point is, oil and gas can and does do good — the key is to be smart about how we capitalize on our resources.

Some 600 million people on the continent still lack adequate electricity access or even clean cooking technologies. These Africans aren’t focused on the fact that reliable energy infrastructure facilitates economic growth by generating jobs, increasing productivity, and reducing the cost of doing business. Most would be elated to have light in their homes after dark or the ability to refrigerate their food.

But think about Africa’s abundant energy potential! By 2050, the continent will be home to 11% of the world’s liquefied natural gas (LNG) market and the second-highest growth supply of gas. By tapping into the vast stores of natural gas at our feet, we can first work to eradicate energy poverty from the continent, and then secure our economic growth as we transition toward renewables.

We Africans should be setting the timetable for Africa’s transition. What I’d like to see instead of Western pressure to bring African oil and gas activities to an abrupt halt, is a cooperative effort. Partnerships, relationships rooted in respect, open communications and empathy. What does that look like? It begins with the belief that when African leaders, businesses, and organizations say the timing is not right to end our fossil fuel operations, we have a point. That when we are discussing our own countries, we know what we are talking about.

Clearly, we still have progress to make. Too many outsiders suggest that African leaders are being manipulated or influenced by greed when they work to foster oil and gas exploration and production in their countries. Few seem to believe that, when countries establish and fine-tune local content laws, adapt investor-friendly fiscal regimes, and promote policy that protects human dignity, they are making reasoned, strategic moves to create better futures for their people.

NJ Ayuk is the Executive Chairman of the African Energy Chamber.  He is also the founder and chief executive officer of the Centurion Law Group, a Pan-African law firm that operates in the energy, financial, and extractive sectors.

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These and other recommendations form part of a research paper CSBAG presented to a public dialogue on renewable energy financing in Uganda that was hosted by Makerere University Business School on November 24. The research, conducted by Ronald Ochen, an economist at CSBAG, also explored the state of gender responsiveness to financing and opportunities for women in Uganda’s renewable energy policies.

In opening remarks, CSBAG executive director Julius Mukunda noted that electricity tariffs in Uganda which surged 8pc in the last quarter, made energy so expensive so that a majority of can only use electric power for lighting.

On the flipside, high energy tariffs drive many people to resort to biomass for energy-intensive tasks such as cooking, resulting in the felling of trees to produce a charcoal, whose demand is whopping 2 million tons annually.

Uganda has a 33 percent energy deprivation score with 33 pc of households experiencing severe deprivation. Biomass still accounts for 98pc of energy used with charcoal account ting for 28pc of that figure. However, in an indictment of energy policy, demand for charcoal is highest in urban areas, which use 58pc of all charcoal sold. The charcoal industry is so significant that it employs an estimated 200,000 people.

Although the country has a high potential for renewal energy, investment has been concentrated in hydropower at the expense of other sources. Access to the grid is still stunted at 19 percent of the population with a majority of rural households -27pc – depending on solar power for lighting.

CSBAG says that with 30.1 percent of the population living below the poverty line, the question of affordable financing for renewable energy becomes critical, because it determines access.

Because of their centrality to survival tasks for household sustenance, women are more impacted by energy shortages than men. And because female headed households are more financially deprived, they are more impacted by arbitrary increases in the price of energy, CSBAG found.

Among the key gaps found, was an outdated renewable energy policy and over-concentration of the energy sector at the centre. Renewable energy financing is also over reliant on donors, the cost of installation and operation of solar technology is high, limiting the scope of its application in rural areas where it is most needed.

CSBAG recommends that funding should be prioritised towards renewable energy alternatives, tariffs should be made affordable to increase access to mainline power, especially for the poor, the manufacturing sector and female-headed households. This should be complemented with a solar fund to improve access by poor and vulnerable communities.
The collective adds that energy subsidies should be transferred from fossil fuels to renewable energy technologies such as solar energy, to boost the uptake of renewable energy at the household level.

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How sustainable will these investments be if it will take technicians from the big cities to answer to emergency calls by users? The VET Toolbox initiative, launched on June30 in Kampala, is one of the answers. Co-funded by the European Union and the German Federal Ministry of Economic Cooperation and Development (BMZ), the VET Toolbox seeks to equip rural youth with the skills that will create a critical mass of solar-power technicians. These community-based technicians are also important in driving and sustaining the productive use of electricity in areas that are seeing electric power for the first time.

The training goes beyond solar technology. The advent of electricity is opening up new business opportunities, expanding employment options for youth and creating diverse demand for technicians in fields such refrigeration and home appliances.

Being implemented through GIZ’s Employment and Skills for Development in Africa (E4D) programme, the VET Toolbox initiative covers 5 countries in Africa, including Uganda; where rural electrification through solar mini grids has been identified as a key priority sector for the VET Toolbox activities.

According to Donald Agaba GIZ’s E4D (education for Development) Uganda team leader, the project expects to empower 20 trainers of trainers and 100 persons as solar technicians. The skills acquired by the trainees are expected to enable them find gainful employment in the solar sector and offer improved services to local communities. The project also targets 300 beneficiaries to train in the Productive use of Energy.

The regional focus will be on Lamwo district in northern Uganda and Mpigi district, just 30km south of the capital Kampala. This VET Toolbox will complement the ongoing solar powered mini-grids drive with skills development with a focus on tailor-made training that responds to the needs and opportunities of the private sector and beneficiaries.

Focus shall be on supporting the set-up of solar-based mini-grids and solar home kits through skills development efforts, leveraging the creation of access to electricity in rural areas, as well as developing knowledge products on PUE measures.

““Under this project, selected enterprises shall undergo a business diagnostic to identify key constraints limiting their growth and competitiveness, which shall be followed by a series of training and technical assistance in areas of innovation and digitalisation, quality management, market development and access to finance,” ,” said Ms. Caroline Adriaensen, the Head of Cooperation, at the European Union mission to Uganda.

She added that the EU continues to support national economies to expand their share of local value addition and local job creation.

The initiative will also support the development and introduction of practical training modules and curricula for photovoltaic system maintenance and productive use of energy (PuE) at Vocational Training Institutions (VTIs) in northern Uganda. In addition, the capacities of VTI instructors shall be strengthened, enabling them to train technicians on the proper design, installation, and maintenance of solar PV systems and PuE.

“The skills acquired by the trainees shall enable them to find gainful employment in the solar sector and offer improved services to local communities,” Agaba added.

Another component of the project involves working with Sustainable Business for Uganda (SB4U) to establish a platform for engagement between public and private sector actors to discuss topics such as solar and renewable energy.

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Like many of the 15,000 residents on the island, Umar’s options expanded on January 14, when Ruth Nankabirwa, the minister for energy presided over the commissioning a solar powered mini-grid that is bringing the basics of modern life to this isolated community. Besides providing power to a commercial water purification plant that also produces ice, the grid also powers a fish drying machine and charging stations for electric motorbikes and outboard boat engines.

Bodawerk, a pioneer Ugandan high-energy density electric battery maker and the vendor of the electric engines and motorbikes; is giving them out under a lease model, which lowers the cost of access and ownership for the islanders.

“Our dream is to electrify all the islands of Lake Victoria and Dolwe should be an example. What we are looking at today is the future of not only access to energy but national bankability of energy systems on the continent. Our focus is on what people will do with electricity- ice, mobility and fish drying,” Ricardo Ridolfi, the chief executive officer of Engie Equatorial said during the official launch.

“Energy improves the quality of life of people but it is better if it increases peoples’ incomes, entrepreneurship and the way people use electricity for the growth of their businesses. We want to replace diesel with solar energy for agro-processing, transport, telecom, and small businesses,” added Gillian Alexander Huart, the chief executive of Engie Energy Access, a joint venture partner in the Dolwe mini-grid project.

The power is available to consumers at a commercial tariff of UGX 1432Kwh. Clean water will improve health and the local health facility will be able deliver better services. Fishermen who were getting ice from mainland were buying 40pc more because of melting along the way, he observed.

“Off-grid is key to our strategy for increasing access to clean energy. Through initiatives like this communities are able to access clean energy faster and cheaper than if we were to focus only on the grid option. Having modern energy unlocks access to better services,” Energy minister Ruth Nankabirwa said.

Nankabirwa further revealed that while 57pc of Ugandans now have access to some form of electricity, off-grid solutions such as the grid in Dolwe, accounted for 33pc of access. The government has so far launched mini-grids in Lamwo district while more were planned for Rubirizi Kasese and Isingiro districts. The government of the Federal Republic of Germany is funding the projects while the Uganda government build the distribution lines through its Rural electrification Agency.

Irene Batebe the Permanent Secretary in the ministry of energy observed that the Dolwe Island mini-grid would be a pace setter for a long time.

“Isolated grid systems are the future of electrification and, they will play a significant role in addressing issues of clean energy. This project aligns well with the National Development Plan3 and Vision2040, where we seek to ensure access to clean energy for every Ugandan by 2030 under the national electrification strategy,” she said.

Under the national electrification strategy, Uganda is looking at solar mini-grids as a quick way of bringing commercially productive electricity to communities that would have waited for decades before connecting to the national grid.  The mini-grids are designed for communities that are not likely to get connected to the national grid in the next ten to twenty years.

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Against a backdrop of increasing global warming and the negative impact of climate change, development financiers are facing up to the challenge of supporting growth without destroying the environment.

The Ministry of Finance, Planning and Economic Development and the Uganda Development Bank Limited (UDBL) are set to co-host the event. UDBL is the country’s leading Development Finance Institution and fully owned by the government. The two-day meeting organized under the World Development Finance Forum (WDFF) is scheduled to take place on December 2nd and 3rd, 2021.

Patricia Ojangole the UDBL managing director said, “We are honoured to co-host the second WDFF in Kampala, in which ground-breaking solutions for financing sustainable development will be unveiled. The event will also spotlight Uganda’s own efforts and that of UDB to invest in the best knowledge available on financing a sustainable and resilient economy. It will also demonstrate to the world what is possible when governments and financing institutions enact smart and ethical policies towards building a sustainable future.”

This is the second convening of the WDFF and marks the second time that UDBL and the government are hosting the event. In the inaugural event held in 2020, delegates passed a resolution calling for action to enhance and protect global and national sustainability and development goals through collective strategies.

These include the expansion of domestic resource mobilization and pooling of international financial resources, strengthening the role of national development finance organizations like UDBL, Central Banks and other non-financial institutions and coordinating these efforts towards tangible goals.

UDBL, in a statement said WDFF 2021 will focus on four objectives. These include ‘Unveiling Financing 4.0’, an effort to revolutionize the mobilization and deployment of capital at a mass scale. Another feature will be on the ‘Reshaping Industry for a Sustainable Economy’ and focus is on enabling countries to benefit from the unfolding Fourth Industrial Revolution (4IR) and use latest engineering and technology to advance national development, protect the environment and combat climate change.

The other two objectives are about sustainability standards for value driven financial sector players which will showcase how sustainability driven financial institutions are changing their economies. The forum will end with recognition of various sustainability leaders for their contribution towards a better world for all.

The WDFF is jointly organized by the Association of Development Finance Institutions in Asia and the Pacific (ADFIAP), Association of National Development Finance Institutions in Member Countries of the Islamic Development Bank (ADFIMI), Association of African Development Finance Institutions (AADFI), European Organisation for Sustainable Development, as well as the Government of Uganda and UDBL

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He might not have to wait much longer. Lebayango village in Agoro East Subcounty, will be among the first of 25 villages in Lamwo district, that will get connected to the solar mini-grids that independent power contractor Winch Energy is setting up.

After two years of bureaucratic delays and disruption by the Covid-19 pandemic, the 80kw Remote Power Unit for Lebayango is on site and engineers will soon rig up the solar panels that will feed the grid that has been built by the government run Rural Electrification Agency.

Racing to beat the 60pc electrification target by 2030, the Ugandan government with the support of the European Union and the German Ministry for Economic Cooperation BMZ, have turned to solar-mini-grids to deliver commercially productive electricity to isolated communities. Lebayango and the other 24 villages in Lamwo district as well as another 15 in Isingiro district in southern Uganda, qualify for the intervention because they are not likely to get connected to the national grid in the next ten to twenty years.

The USD4 million project with a 60pc subsidy component, is expected to serve between 2300 and 3000 users in Lamwo where the 25 mini-grids will have a combined generation capacity of 1Mw.

Ongwech who paid USD20 for the connection that will bring power to his door, will also be paying a consumer tariff of $29cents per kilowatt, thanks to the EU subsidy and government’s in-kind contribution of land for the solar stations and the distribution grid, valued at USD0.8 million.

Nyeko Bongo, an elder in Lebayango, hopes that the availability of electricity will not just to bring “the light,” as electricity is called many parts of Uganda, but also help stimulate the economic activities that can engage the youth in productively.

“The young men in the village are idle, when power is available, they can set up small businesses such as barber shops and phone charging stations,” Bongo says.

Unlike the power off photovoltaic solar units, the power coming off Winch Energy’s dual channel Remote Power Units, is converted into alternating current and is available 24 hours a day. The power banks in the system store enough energy to feed the grid even without new input from the sun for up 120 hours at a time.

But one can do a lot more with the mini-grid. The power can be stepped up to three phase, enabling the operation of light industrial machinery such as wood working machines, welding and other industrial applications. It is also believed that availability of power will initiate some kind of substitution at local level, bringing to the communities, simple services and products that they have previously had to get from elsewhere. Winch Energy is also responsible for training communities on how they can productively use their newly acquired electricity.

According to Mr. Alex Wanume, Winch Energy’s Country director for Uganda , the $29cts consumer tariff is the lowest one can get for solar fed mini-grids. While photovoltaic systems have achieved the economies of scale to compete with hydro on the tariff, the absence of a storage system to maintain supply after the sun is down, is a drawback.

Under the third edition of its National Development Plan, Uganda aims to have 60 percent of its population with access to electricity by 2030. Today, only 21 percent of the population has access to electricity supplied by either hydro, thermal or solar. Expanding the reach of the national grid continues, but it is a tall order. Some communities are simply too small and too far away from the nearest service point, to justify grid extension. That makes the solar mini-grids an attractive last mile solution.

Winch Energy’s solar power stations also have a shorter gestation cycle making them ideal for quick deployment. Now that all the policy and fiscal issues have been sorted out, the Remote Power Units which come pre-installed in 40ft containers can be set up an activated within weeks, once in the country.

The Lamwo an Isingiro mini-grids are a pilot whose experience will be used to adopt the technology on a larger scale. Before securing the EU/Government of Uganda contract, Winch Energy had already built a solar mini-grid on Bunjako Island, 70km south of Kampala, where two stations with a combined capacity of 120Kw have been installed. The tariff is Bunjako is $35cents because Winch Energy only got a partial grant from Total Energies and the Rural Electrification Agency, to set up the $1 million project.

Consumers in Bunjako also pay a USD78 one-off fee, for a one lighting point and one socket connection. Without the grant, the same connection would have cost consumers USD194.

To lower the tariff for commercial and industrial users in Bunjako, Winch Energy is in talks with the Electricity Regulatory Authority ERA, to design tariff bands within the $35 composite tariff. Winch Energy says that so far, they have received 5 applications for industrial use in Bunjako, where 85 consumers have already been connected to the 80Kw station in Ssenyondo village.

“A key difference between a solar mini-grid and solar photovoltaic units is that in our case, the power is converted to AC and stepped up to three phase. That allows industrial activity to operate,” Wanume says.

Even within a single community, the generation units have to be replicated because the service grid can only operate optimally within a radius of 800 metres.  Beyond that distance, the power decays so fast that the current will be too weak to meet the purpose.

“Electrification is one of the backbones for driving the development of Uganda. Alongside grid extensions by REA, solar mini-grids are going to be key to increasing the number of people who have access to electricity,” Wanume says

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