Power Sector Transformation

Uganda has a considerable surplus of power with installed generation capacity of 1182MW and 600MW of domestic demand, representing a capacity utilization rate of 50%.

By 2020, electricity supply is set to increase to 2000MW with the commissioning of Karuma Hydro-power plant and other Independent Power Producers.

However, supply is not matched by demand. Only 23% of the populace has access to grid electricity and this coupled with low levels of industrialization has added to the low demand.

In addition, capacity payments for the newly commissioned hydro plants pose a huge financial risk as the Electricity Regulator has maintained an almost cost-reflective tariff with government subsidies only going towards capital investments in the transmission network.

Costs for the capacity payments for the new generators can only be shielded within the tariff, if there is a significant increase in productive demand, provided by the industries and small business

There is urgent need therefore, to grow the productive demand, currently at an average annualized growth rate of 4% over the past 5 years to match the excess supply.

The government has since embarked on an aggressive access agenda through the Electricity Connections Policy.

Our intervention:

CIG Uganda is working with the Ministry, Departments and Government Agencies and the power sector on the demand and supply side to improve productive use of available power to drive economic and social growth that will create wealth and employment.

We will facilitate coordination and collaboration between sector players to drive alignment in the value chain with emphasis in implementation support and technical capacity improvement.

The intervention objective:

Improved access to reliable and affordable power for households and businesses to support the increase in trade, productivity and private sector development through the creation of jobs.

Technical and sector skills have been deployed to work with the industry players and address the bottlenecks through: