Segments de marché

Among the 20 countries with the largest energy access deficits, since 2010 Uganda has been one of the top three performers closing the energy access gap with annual electrification growth rates in excess of 3.5%. Off-grid solutions form a significant part of this. The Rural Electrification Strategy and Plan (RESP) has a target of 8,500 new connections from mini-grids by 2022. To facilitate this the 2016/2017 National Budget exempted producers of solar, wind and geothermal energy from VAT incurred on their business inputs. As of May 2020 much of the mini-grid specific regulation was still under development, including a tariff methodology.

An innovative approach by the Rural Electrification Agency has been to support developers by providing all mini-grid distribution infrastructure including installing the network and connecting households free of charge. Effectively, this represents approximately 30% capital subsidy to each project. However, eligible projects must fall within the areas of current REA interest.

Overall, Uganda is a promising mini-grid market and there are numerous players in the sector. These include Absolute Energy Africa, Bakulu Power, Equatorial Power, Husk Power, Kalangala Infrastructure Services, Kirchner Solar, Kisiizi Power, Pamoja Energy, PowerCorner, PowerGen Renewable Energy, Remergy, SunMoyo, Winch Energy and West Nile Rural Electrification Company (WENRECO).

The Electricity Act of 1999 opened the energy sector for private participation and provided for licencing procedures pertaining to electricity generation, transmission and distribution. The Electricity (Tariff Code) Regulations of 2003, in the framework of the 1999 Electricity Act, specifies general tariff calculation guidelines for all licencees in the electricity sector (which includes generation, transmission, system operation, bulk supply, retail and export/import). The Electricity (Application for Permit, Licence and Tariff Review) Regulations of 2007, in the framework of the 1999 Electricity Act, outlines the permit and licence application procedures, and refers tariff calculation to the tariff code regulations of 2003 as well as any other tariff procedures approved by ERA. The Electricity (Installation Permits) regulations of 2018, in the framework of the 1999 Electricity Act, require any person and company involved with electrical installation work to obtain an installation permit. The regulations distinguish between different types of permits (Class A, B, C, D and Z) and state prerequisites for permit approval such as technical qualifications. The Electricity (Quality of Service Regulations) of 2003, in the framework of the 1999 Electricity Act, specifies general minimum service standards and requirements relating to consumer relations for all licenced electricity activities. Specific technical standards are provided in the Electricity (Primary Grid Code) regulations of 2003 and the Electricity (Safety Code) regulations of 2003. The grid code consists of a systems operations code, scheduling and dispatch code and distribution and retail sales code. The Electricity (Licence Exemption) (Isolated Grid Systems) Order of 2007, in the framework of the 1999 Electricity Act, applies only to isolated grids and states that mini-grids in rural areas smaller than 2 MW are exempted from having to apply for a licence. As such the mini-grid is also exempt from the regulations applicable to licenced electricity activities. However, the developer/operator must still apply to ERA for a certificate of exemption, and is expected to comply with isolated grid technical standards and isolated grid system service standards (these are not available from ERA's website). Tariffs must be in line with ERA's price schedule for rural electrification systems. The order also provides for the information that exempted mini-grid operators/developers must report to ERA. The Electricity (Licence fees) (Amendment) (No. 3) regulations of 2014, in the framework of the 1999 Electricity Law, specifies the annual licencing fees for generation, transmission, distribution, and imports and exports of electricity. The Weights and Measures (Electricity Meters) Rules of 2015, in the framework of the Weights and Measures Act, specifies the units of measurement for the sale of electricity, operating requirements of meters and data requirements. The Electricity (Reporting and Record Keeping) Regulations of 2019, in the framework of the 1999 Electricity Act, requires all electricity sector licencees and permit holders to keep reports and records relating to their operations. Guidelines on the information to be reported are provided in the regulations. Requirements are differentiated between generation, transmission and distribution licences. Permit holders have a separate set of guidelines.

Uganda has a thriving market for solar home systems (SHS) and pico-solar solutions. By 2017, about 300,000 households were connected to at least a Tier 1 SHS and uptake seems to be growing. In 2019 alone, almost 399,285 SHS and pico-solar products were sold by GOGLA and Lighting Global affiliated companies, marking an 8% increase from the previous year. PAYGO accounted for 65% of sales in 2019, a 5% increase from 2018.

The country has more than 25 companies importing and distributing a multitude of products and offering a range of related services, many of which are members of the Uganda Solar Energy Association (USEA). Examples include d.light, Fenix, Greenlight Planet (SunKing), Little Sun, M-Kopa, Rural Spark, SolarNow, Solar Links, Solar Sisters, Total, VAC Solar UK and Village Energy.

Providing access to modern energy services through alternative and renewable sources is a key priority for Uganda. The Renewable Energy Policy (REP), developed by the Government of Uganda in 2007, outlines specific enabling policy actions such as fiscal and financial incentives for investment. Taxes on solar products and equipment were removed in 2005 to reduce prices. The Uganda Bureau of Standards has also played an important role to develop and maintain the quality of solar systems in the country.

The Rural Electrification Strategy and Plan (RESP) aims for 130,000 new SHS by 2022, mostly through private-led initiatives overseen by the Uganda National Renewable Energy Association (UNREAL).

The Electricity Act of 1999 opened the energy sector for private participation and provided for licencing procedures pertaining to electricity generation, transmission and distribution.

The captive power market in Uganda is well developed, with about 30 suppliers and installers active in the country as of 2019. As is the case in other African countries, captive power sites in Uganda range in size from less than 100 kW to more than 10 MW, and rely on different sources of energy depending on their use and location. Example companies providing captive power solutions in Uganda include SolarNow and Village Energy.

Commercial and industrial (C&I) users comprise most of the captive power installations and include farming operations of various sizes, office blocks and larger sugar processing plants. On the smaller end of the spectrum, examples include a flower farm near Entebbe with a 30 kW solar array, and an urban office block in Kampala with 300 kW of solar PV.

Larger plants typically comprise sugar plantations and processing plants. These plants are usually designed according to availability of bagasse as feedstock for thermal generation, and as a consequence generate more energy than they consume. Excess energy is sold to the grid. Kinyara Sugar Works owns and operates a 14.5 MW thermal plant, and sells their excess of around 4 MW to the grid. The Sugar Corporation of Uganda operates the 9.5 MW Lugazi biomass power station and its 6.5 MW expansion. The Kaliro power station (12 MW) is owned and operated by Sugar & Allied Industries, while the Mayuge Sugar Industries operates a 9.2 MW station with the same name. Kakira Sugar has one of the largest bagasse cogeneration facilities with a capacity of 51 MW, of which it sells around 32 MW to the grid.

In 2019, there were no specific policies or dedicated regulatory framework for captive power in Uganda. There are, however, support for distributed generation from renewable energy and private sector participation in the energy sector. Regulations allow for the wheeling of electricity by licenced generators, in addition to a renewable energy feed-in tariff (REFIT) scheme.

The Electricity Act of 1999 opened the energy sector for private participation and provided for licencing procedures pertaining to electricity generation, transmission and distribution. The Electricity (Tariff Code) Regulations of 2003, in the framework of the 1999 Electricity Act, specifies general tariff calculation guidelines for all licencees in the electricity sector (which includes generation, transmission, system operation, bulk supply, retail and export/import).

The Electricity (Application for Permit, Licence and Tariff Review) Regulations of 2007, in the framework of the 1999 Electricity Act, outlines the permit and licence application procedures, and refers tariff calculation to the tariff code regulations of 2003 as well as any other tariff procedures approved by ERA. Note that a permit provides an operator the opportunity to only carry out the necessary studies and work required to apply for a licence.
The Electricity (Installation Permits) regulations of 2018, in the framework of the 1999 Electricity Act, require any person and company involved with electrical installation work to obtain an installation permit. The regulations distinguish between different types of permits (Class A, B, C, D and Z) and state prerequisites for permit approval such as technical qualifications. The Electricity (Quality of Service Regulations) of 2003, in the framework of the 1999 Electricity Act, specifies general minimum service standards and requirements relating to consumer relations for all licenced electricity activities. Specific technical standards are provided in the Electricity (Primary Grid Code) regulations of 2003 and the Electricity (Safety Code) regulations of 2003. The grid code consists of a systems operations code, scheduling and dispatch code and distribution and retail sales code. The Electricity (Licence fees) (Amendment) (No. 3) regulations of 2014, in the framework of the 1999 Electricity Law, specifies the annual licencing fees for generation, transmission, distribution, isolated mini-grids and imports and exports of electricity.
The Weights and Measures (Electricity Meters) Rules of 2015, in the framework of the Weights and Measures Act, specifies the units of measurement for the sale of electricity, operating requirements of meters and data requirements. The Electricity (Reporting and Record Keeping) Regulations of 2019, in the framework of the 1999 Electricity Act, requires all electricity sector licencees and permit holders to keep reports and records relating to their operations. Guidelines on the information to be reported are provided in the regulations. Requirements are differentiated between generation, transmission and distribution licences. Permit holders have a separate set of guidelines.

There is a strong dependence on solid fuels for cooking in the country with only 6% of the population using clean cookstoves and fuels for cooking. Wood is the main fuel used for cooking with other fuels such as charcoal, kerosene and liquid petroleum gas (LPG) used as secondary fuels.

Several companies operate in the clean cooking sector in Uganda, many of which are members of the Biomass Energy Efficient Technologies Association (BEETA) and the Uganda National Biogas Alliance (UNBA). An estimated 300,000 improved cookstoves are produced per year in the country. African Clean Energy distributes solar-biomass hybrid energy cookstoves and Prime Cookstoves manufactures and sells improved biomass cookstoves. In terms of improved cooking fuels, Appropriate Energy Saving Technologies (AEST) manufactures organic charcoal from agricultural waste, while Green Bio Energy (GBE) and Divine Bamboo Group develop and distribute eco-friendly briquettes. Wana Energy Solutions distributes LPG, while Mayuge Sugar Industries and the Sugar Corporation of Uganda distribute biofuel.

Other organisations include Ecostove, Green Heat Uganda, the Raising Gabdho Foundation, Simoshi, Ugastove, and Vulcanex International. The Africa Biogas Partnership Programme (ABPP) installed 7,588 biodigesters and established five marketing hubs by the end of 2017.