Govt clears private investors in electricity transmission network

Kampala, Uganda | THE INDEPENDENT | The Solicitor General has approved a request by the Electricity Regulatory Authority– ERA to involve independent private investors in the electricity transmission network.

Eng. Ziria Tibalwa Waako, the ERA’s Chief Executive Officer told URN that in the emerging markets of the Independent Power Transmission (IPT) model, a private player develops, finances, builds, and operates a single transmission network asset under a long-term tendered contract.

Following the Solicitor General’s approval, Eng. Ziria says the Authority under the Electricity (Amendment) Act 2022 will gazette the IPT model within the next 30 days to invite licensed applications for independent private transmission segments through a competitive bidding process.

Charles Oleny Ojok, the National Planning Authority (NPA) Deputy Executive Director hailed ERA for ensuring the efficient evacuation of the energy generated in the country which currently stands at 2000 MW to spur growth in the electricity connectivity to achieve the desired social and economic development.

Parliament passed the Electricity (Amendment) Bill 2022 to streamline the operations of the energy sector and reinforced ERA’s mandate as a government agency to regulate, license, and supervise the generation, transmission, distribution, sale, export, and importation of Uganda’s electrical energy.

The Act removed the monopoly of the Uganda Electricity Transmission Company – UETC, and Uganda Electricity Distribution Company – UEDC as the single buyers and suppliers of generated electricity and introduced private players to enhance competitiveness.

As a way of growing access to clean energy across thecountry, ERA has licensed several electricity distribution operators across the country to serve the hitherto unserved and predominantly rural community.

They include 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.

The Access to Clean Energy rate has also increased and the legally Grid-Connected Customer Base has grown from approximately 180,000 Customers in 2001 to 1,643,288 in 2020, including Off-Grid Customers. The Government intends to connect at least 1.3 million people by 2030.

The Uganda Bureau of Statistics recently released a report indicating that access to electricity has grown from a perennial 12%-15% to 51%. Electricity demand is rising at a rate of 8.2 percent annually, equating to 125,000 new customers every year as of December 2022.

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URN