EU softly financing Uganda’s 52 gigawatt electricity goal
Uganda is seeking to increase its electricity capacity to two gigawatts to power growth prospects, infrastructure projects, and industrial parks. Photo / File
What you need to know:
- Uganda seeks to have 52 gigawatts of electricity by 2040 from the current two gigawatts to power growth prospects, infrastructure projects, and industrial parks. The challenge, however, is obtaining financing
Uganda’s ambitious energy goals will get a boost from the European Union, which is backing the country’s quest for universal electricity access by 2030.
Uganda is seeking to have 52 gigawatts of electricity by 2040 from the current two gigawatts to power growth prospects, infrastructure projects, and industrial parks. The challenge, however, is obtaining financing.
The EU isn’t just cheering from the side-lines - it’s leveraging its Global Gateway Strategy, a €300m plan to bridge infrastructure investment gaps worldwide.
Half of this is earmarked for sub-Saharan Africa, and Uganda is a star player.
Over the past five years, the EU has funneled €200m in grants into Uganda’s energy sector, in partnership with the European Investment Bank to unlock electricity access, with more than €1b invested across Africa’s renewable energy capacity.
The EU’s power play doesn’t stop there. It’s committing €3.4b in grants across sub-Saharan Africa to supercharge renewable energy, drive energy efficiency, and create green local value chains.
This seeks to unleash at least 50 gigawatts of renewable power and light up at least 100 million people. For Uganda, this partnership will ensure sustainable development and a greener energy future.
Key investments include support for the Continental Power System Master Plan and transformative projects such as the Zambia-Tanzania-Kenya line to connect the Southern and East African power pools.
The EU has also funded the Uganda-Kenya inter-connector and feasibility studies for the South Sudan-Uganda inter-connector, in partnership with the African Development Bank.
On generation, the EU backs Uganda’s target to reduce electricity generation costs to 5 US cents per kilowatt-hour, an ambitious goal requiring hefty investments in renewable energy.
To this end, a €30m grant - part of a broader €170m package - is earmarked to rehabilitate the Nalubaale-Kira hydropower system.
A coalition of European partners - the French Development Agency, the European Investment Bank, and the EU Commission - is leading Uganda's charge towards universal electricity access by 2030.
Central to this is the rehabilitation of Nalubaale-Kira, a major hydropower plant in Uganda’s energy ecosystem, which is funded by Team Europe’s €170m package and seeks to extend the plant’s life by 30 years.
“This grant will unlock favorable financial conditions, helping Uganda maintain affordable electricity while safeguarding its productive economy,” EU Ambassador Jan Sadek, said at the 2024 Power Forum.
The EU’s efforts have empowered 1.5 million Ugandans with electricity, with an additional 3 million set to join the grid by 2027. Beyond urban areas, the EU is targeting rural and vulnerable communities with a comprehensive approach that covers every aspect of Uganda’s energy landscape.
France is leading the way in grid extensions, while Germany and the EU are scaling up the mini-grid market.
Sweden and Denmark are championing standalone systems, and the Netherlands is focused on promoting clean cooking solutions.
