Gov’t Approves Private Investors in Electricity Transmission Network

Eng. Ziria Tibalwa Waako, the Chief Executive Officer of the Electricity Regulatory Authority (ERA), has announced that the government has granted permission, following a request from ERA, to involve independent private investors in the electricity transmission network.

In the emerging markets of the Independent Power Transmission (IPT) model, a private entity takes on the development, financing, construction, and operation of a single transmission network asset under a long-term tendered contract, explained Eng. Ziria.

With the Solicitor General’s approval, ERA will proceed to gazette the IPT model within the next 30 days, inviting licensed applications for independent private transmission segments through a competitive bidding process, as authorized by the Electricity (Amendment) Act of 2022.

Charles Oleny Ojok, the Deputy Executive Director of the National Planning Authority (NPA), emphasized the need for efficient energy evacuation in Uganda, where the current energy generation capacity stands at 2000 MW, in order to stimulate growth in electricity connectivity and achieve desired social and economic development.

Parliament enacted the Electricity (Amendment) Bill 2022 to streamline the operations of the energy sector and strengthen ERA’s role as a government agency responsible for regulating, licensing, and overseeing the generation, transmission, distribution, sale, export, and importation of electrical energy in Uganda.

The Act eliminated the monopoly held by the Uganda Electricity Transmission Company (UETC) and Uganda Electricity Distribution Company (UEDC) as the sole buyers and suppliers of generated electricity, introducing private players to enhance competitiveness.

As part of the effort to expand access to clean energy across the country, ERA has granted licenses to various electricity distribution operators, including Umeme Limited, West Nile Rural Electrification Company (WENRECo), Bundibugyo Electricity Cooperative Society (BECS), Kyegegwa Rural Energy Co-operative Society (KRECS), Pader-Abim Community Multi-Purpose Electric Co-operative Society (PACMECS), Kilembe Investments Limited (KIL), Hydromax, and Kalangala Infrastructure Services Limited.

Access to clean energy has also increased, with the legally grid-connected customer base growing from approximately 180,000 customers in 2001 to 1,643,288 in 2020, including off-grid customers. The government aims to connect at least 1.3 million people by 2030.

According to a recent report from the Uganda Bureau of Statistics, access to electricity has risen from a consistent 12%-15% to 51%. The demand for electricity is increasing at a rate of 8.2% annually, resulting in 125,000 new customers every year as of December 2022.

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