Tight regulations on mini-grids dominate power forum

Dec 04, 2020

Speaking during the launch of Uganda’s Energy Road Map in Kampala, David Duli, the country director at World Wide Fund said that the low electrification rate is a major barrier for economic development.

ELECTRICITY INFRASTRUCTURE

Access to electricity remains a major barrier for millions of Ugandans. Some experts have argued that the lack of access to electricity has partly locked several Ugandans in the rural areas in unproductive work.

Speaking during the launch of Uganda's Energy Road Map in Kampala, David Duli, the country director at World Wide Fund said that the low electrification rate is a major barrier for economic development and poverty reduction.

(L-R) Benon Bena, Head of Off-Grid Renewable Energy Rural Electrification Agency (REA) interacting with David Duli, Country Director, World Wide Fund (WWF) during the Power forum 2020 held at Golden Tulip Hotel on Friday, December 04, 2020. (Photo by Shamim Saad)

He noted that the government should review the isolated mini-grid regulations to attract more companies to invest in projects.

He said mini-grids can easily supply reliable electricity in most villages where grid extension is not financially viable.

"Mini-grids have a lot of potential yet there is still low power supply in remote areas. We need to have a simplified way of licensing mini-grids to attract investments to the sector," Duli said.

According to the Energy Minister Mary Goretti Kitutu, the mini-grids can effectively serve isolated and clustered populations. Off-grid electrification is done by private companies using standalone energy solutions and so far, 13 mini-grids are in operation, according to Kitutu.

Mary Goretti Kitutu, Minister of Energy speaking during the Power forum 2020 held at Golden Tulip Hotel on Friday, December 04, 2020. (Photo by Shamim Saad)

"We have tendered out 40 mini-grids to be developed and operated by the private sector and estimated to provide 4,000 connections," she said.

"The third alternative is isolated solar home systems and solar appliances. These provide valuable energy services in the form of lighting and power for electronics. Government is providing credit support through solar loans which are managed by commercial banks and Microfinance Institutions to enable households to acquire the systems," she added.

Moses Kakooza from German International Organisation (GIZ) said the private sector seeks to promote private investment for mini-grids in Uganda. However, the policy and regulatory framework for mini-grids still need to be developed to enable mini-grid projects to reach the necessary scale.

(L-R) Benon Bena, Head of Off-Grid Renewable Energy Rural Electrification Agency (REA), David Duli, Country Director, World Wide Fund (WWF), Harold Obiga, Director Legal and Authority Affairs Electricity Regulatory Authority (ERA) and Alex Wanume, Country Director, Winch Energy during a panel discussion. (Photo by Shamim Saad)

"If you have a fridge in the village, a shop or want to start a welding business, you need power which is close to the grid. And this is what a mini-grid provides," he said.

"A lot of people in the villages have no power. More than 60% still need power for making money. We need to increase the speed on the ground on mini-grids and prioritize to have power for everybody," he added.

Uganda's total installed capacity is currently estimated at 1,252.4MW, and this is expected to hit 2035.4MW with the coming on board of the 783MW Karuma dam later next year.

Participants listen attentively during the launching of the power sector roadmap during the Power forum 2020 held at Golden Tulip Hotel on Friday, December 04, 2020. (Photo by Shamim Saad)

Kitutu said that the government is developing the National Electrification Strategy (NES) aimed at achieving electricity access by every Ugandan, taking into consideration technical, institutional, policy, regulatory, legal, and financial aspects.