GET-Fit Annual Report 2016.Pdf

Total Page:16

File Type:pdf, Size:1020Kb

GET-Fit Annual Report 2016.Pdf GET FiT UGANDA | ANNUAL REPORT 2016 ANNUAL REPORT 2016 This report including all content and illustration has been prepared by and In cooperation with PAGE 3 MESSAGE FROM ERA The Electricity Regulatory Authority continues to recognize the great role played by the GET FiT program in supporting Uganda towards achieving the policy objective regarding the prioritization of renewable energy in the national generation mix. Eng. Ziria Tibalwa Waako, AG. Chief Executive Officer GET FiT UGANDA | ANNUAL REPORT 2016 he year 2016 saw the impact of the GET modelling, and standards for interconnection and FiT program on Uganda’s Electricity wheeling arrangement. The facility has enabled Supply Industry grow from strength the Authority to build capacity to ensure long to strength. In addition to the six (6) term sustainability beyond the GET FiT Program. Thydropower projects that broke ground in 2015, construction works began for six (6) more power It is notable that the implementation of the GET plants in 2016 and early 2017, bringing the total FiT program saw Uganda become one of the best of the planned installed capacity from the GET Renewable energy investment destinations and FiT projects currently under construction to 86 gain international recognition. The Bloomberg MW. ratings of 2016 rated the country 2nd best with regard to Renewable Energy investments in Furthermore, on December 12, 2016, the Ugandan Africa. In an effort to maintain the favourable Electricity Supply Industry through GET FiT Renewable Energy Investment climate, the support achieved yet another major milestone Authority with support from the GET FIT program of commissioning the first grid connected Solar revised the Renewable Energy Feed in Tariffs in Photovoltaic Plant in the country. The 10 MW July 2016 in order to sustain the level of financial grid connected Solar PV plant located in Soroti viability of the potential projects to ensure that by Access Uganda Solar Limited is the largest of the country remains one of the best investment its kind in the East and Central African region. destinations on the African continent beyond the The development of this solar project, has gone GET FiT program. a long way to demonstrate how synergies of Development Partner and hosting government The Authority appreciated the continued support support can be utilized to harness private sector from development partners towards construction capital for infrastructure project development. of evacuation infrastructure for the GET FIT projects. As we approach the peak of construction The Electricity Regulatory Authority continues and commissioning of the GET FIT generation to recognize the great role played by the GET plants, the Authority shall continue to prioritize FiT program in supporting Uganda towards the proper monitoring and coordination of achieving the policy objective regarding the the construction activities for the evacuation prioritization of renewable energy in the national infrastructure. This will enable a harmonized generation mix. Monitoring of projects under commissioning of the power plants. construction is on-going so as to enable them to achieve Commercial Operations Dates as per the The Electricity Regulatory Authority is committed respective implementation time plans. to ensuring efficient and effective implementation of the GET FIT program and shall continue to make The Electricity Regulatory Authority would every effort to achieve sustainable electricity further like to salute the GET FiT program for Supply for social economic transformation. the Technical Assistance facility which has enhanced ERA’s processes in regulating the The Authority looks forward to supporting Electricity Supply Industry. Particular emphasis Development Partners in sharing the experiences of the Technical Assistance facility was placed and lessons learnt during the implementation of on Due-diligence for licensing, evaluation and the Uganda GET FiT program, as similar programs monitoring of projects, financial and tariff are rolled out in other countries. Eng. Ziria Tibalwa Waako, AG. Chief Executive Officer PAGE 5 MESSAGE FROM EU KfW and the German Government have rallied development partners Norway, the United Kingdom and the European Union around a programme owned by the Government of Uganda, reducing the transaction costs for the Government. This is effectiveness! Kristian Schmidt, EU ambassador to Uganda GET FiT UGANDA | ANNUAL REPORT 2016 ear readers, Uganda has recently been ranked at the top of on the 12th of December 2016, we international indexes on investment climate for celebrated the inauguration of the first renewable energy. Bloomberg’s “Climatescope GET FiT solar plant in Soroti - with 2016” has ranked Uganda 7th out of 55 developing Da production capacity of 10 MW the biggest in countries worldwide and 2nd in Africa for its clean Eastern Africa. energy investment climate and policies, showing a steady improvement after already good results The Soroti Solar Plant project is a very good in 2014 and 2015. In the October 2016 index from demonstration on how development partners can Fieldstone Africa, Uganda was also one of the deliver better when they efficiently coordinate Big Five together with Morocco and Egypt. These their efforts. The GET FiT programme is also a are markets in which investment in renewable real success in this sense. KfW and the German energy is compelling. I wish to congratulate the Government have rallied development partners Government of Uganda for this very good result. Norway, the United Kingdom and the European Union around a programme owned by the Another 10MW Solar Plant will soon be Government of Uganda, reducing the transaction constructed in Tororo supported by the EU and costs for the Government. This is effectiveness! the GET FiT programme. Together with other GET FiT projects (total 160 MW), it is contributing to The GET FiT programme in Uganda is the first diversifying Uganda’s electricity mix, reducing the one of this kind in the world. Given its success, current high dependency on hydropower and the it is now being copied in Zambia and Vietnam, need for thermal generation, and thus reducing whereas Namibia, Ghana and Mozambique have the emission of greenhouse gases and making also shown interest in the model. Uganda more resilient to climate change. Such a programme would not have been possible GET FiT is therefore part of global efforts to without the strong commitment and the key role switch to full renewable energy sources. At the played by the Electricity Regulatory Authority UN conference on climate change in Paris in (ERA). I would like here to pay tribute to the December 2015 and in Marrakech in November former CEO of ERA, Dr Benon Mutambi, who 2016, the world reached a ground-breaking created the model. He designed, together with agreement to limit global warming and accelerate Development Partners, this innovative scheme the introduction of renewable energy worldwide. of a GET FiT Premium to finance and fill the Uganda may hit international headlines for its viability gap for renewable energy projects to be renewable energy success story. profitable. He contributed to the improvement of an enabling regulatory framework for private The next challenge for Uganda is now to bring sector investment in renewable energy, which is power to the people. As development partners recognised internationally and that many other we welcome the current reflexion about a new countries now want to emulate. I am convinced policy on electricity access and we stand ready Eng. Ziria Tibalwa, the new acting CEO, will to support the Government of Uganda in that continue to implement Dr Mutambi’s legacy with direction. excellence. Kristian Schmidt, EU ambassador to Uganda PAGE 7 GOU and KFW | Multiconsult 17 Pr jects 157 mw 769 GW Soon to begin Soon to UNDER-CONSTUTION Commissioned 4 2 4200 jobs 11 Actual progress 10 Mw 18 GWh on goals* 68 commissioned 59 commissioned in 2016 in 2016 1500 jobs 7 PPAs signed *based on projects with financial close 92 created in 2016 94 in 2016 Public Leveraging a 57 financing total investment 104 M of over USD Private 428 M 43 financing USD in GET FiT premiums PAGE 8 GET FiT UGANDA | ANNUAL REPORT 2016 EXECUTIVE SUMMARY ver the past year, GET FiT Uganda this year, construction supervision and flexible has taken several considerable steps follow-up of any unforeseen technical issues will towards full materialization of its continue to be a core activity of the GET FiT team. project portfolio. As perhaps one the Omost important highlights of 2016, eight projects Adding to the above, construction of critical grid managed to reach financial close with their lenders infrastructure for power evacuation of GET FiT in 2016, thus bringing the total up to 11 out of projects will be commenced under the support 17 projects. This effectively means that in terms of GET FiT development partners. This will not of installed generation capacity (MW), 63 percent only cater for successful implementation of the of the portfolio is now financially secured. This, portfolio, but also strengthen the national grid combined with the equally important fact that 74 and pave the way for further renewable energy percent of the portfolio is now under construction development and electrification. Moreover, ERA or commissioned (12 out of 17 projects), bodes will benefit from improved regulatory frameworks for great optimism going into the final years of and comprehensive capacity building in key Program implementation. areas of its core business through the extensive technical assistance provided as part of the In November, the Soroti solar PV project (10 Program. Hence, 2017 is likely to become a highly MW) was commissioned as Uganda’s first on- productive, fruitful and exciting year for GET FiT grid solar power plant. This milestone for the stakeholders and the Ugandan power sector. Ugandan power sector marked the beginning of a potentially bright solar powered future for It is uplifting also to note that the environmental the country. The official opening attracted great and social performance across the project publicity and manifested the position of Uganda’s portfolio has improved noticeably in 2016.
Recommended publications
  • Uganda's Fading Luster: Environmental Security in the Pearl of Africa
    Uganda’sUganda’s FadingFading Luster:Luster: EnvironmentalEnvironmental SecuritySecurity inin thethe PearlPearl ofof AfricaAfrica A Pilot Case Study Foundation for Environmental Security and Sustainability June 2006 “Yet it is not possible to descend the Nile continuously from its source at Ripon Falls without realizing that the best lies behind one. Uganda is the pearl.” - Winston Churchill, My African Journey, 1908. The Foundation for Environmental Security and Sustainability (FESS) is a public policy foundation established to advance knowledge and provide practical solutions for key environmental security concerns around the world. FESS combines empirical analysis with in-country research to construct policy-relevant analyses and recommendations to address environmental conditions that pose risks to national, regional, and global security and stability. Co-Executive Director: Ray Simmons Co-Executive Director: Darci Glass-Royal The Partnership for African Environmental Sustainability (PAES) is a non- governmental organization established to promote environmentally and socially sustainable development in Africa. PAES focuses on policy studies and assists countries to strengthen their capacities in four program areas: environmental security; sustainable development strategies; sustainable land management; and natural resource assessment. PAES is headquartered in Kampala, Uganda, with offices in Washington, D.C. and Lusaka, Zambia. President and CEO: Mersie Ejigu This report was produced in 2006 by the Foundation for Environmental Security and Sustainability. The principal writers were Mersie Ejigu, Christine Mataya, Jeffrey Stark, and Ellen Suthers. Additional contributions were made by field research team members Eric Dannenmaier, Joëlle DuMont, Sauda Katenda, Loren Remsburg, and Sileshi Tsegaye. Cover photo: Kabale District Christine Mataya Acknowledgement FESS would like to thank staff at USAID/EGAT/ESP in Washington, DC as well the USAID Mission in Kampala for their encouragement and support.
    [Show full text]
  • UGANDA COUNTRY REPORT Wikus Kruger, Kyle Swartz and Anton Eberhard Power Futures Lab
    AUGUST 2018 UGANDA COUNTRY REPORT Wikus Kruger, Kyle Swartz and Anton Eberhard Power Futures Lab Report 2: Energy and Economic Growth Research Programme (W01 and W05) PO Number: PO00022908 www.gsb.uct.ac.za/mir Uganda Country Report Report 2: Energy and Economic Growth Research Programme (W01 and W05) PO Number: PO00022908 August 2018 Wikus Kruger, Kyle Swartz and Anton Eberhard Power Futures Lab Contents List of figures and tables Frequently used acronyms and abbreviations 1 Introduction 2 Country overview Uganda’s power sector: reconsidering reform? Key challenges facing the sector The GET FiT programme in Uganda 3 The GET Fit Solar PV Facility: auction design Auction demand Site selection Qualification and compliance requirements Bidder ranking and winner selection Seller and buyer liabilities 4 Running the auction: the key role-players GET FiT Steering Committee Investment committee The Secretariat The independent implementation consultant 5 Evaluating and securing the bids Securing equity providers Securing debt providers Assessing off-taker risk Securing the revenue stream Technical performance and strategic management 6 Coordination and management: strengths and challenges 7 Conclusion: lessons and recommendations Appendix A Possibly forthcoming non-GET FiT electricity generation projects in Uganda, 2018 Appendix B Analytical framework References 2 List of figures and tables Figures Figure 1: Installed electricity generation capacity, Uganda, 2008-2017 Figure 2: Generation capacity versus peak-demand projections, Uganda, 2012–2030
    [Show full text]
  • OIL and GAS Oranto to Have Majority Stake in Ngassa Oil Well
    NOVEMBER, 2016 OIL AND GAS Oranto to have majority stake in Ngassa oil well Oranto Petroleum Limited is current- the Ngassa well to Oranto. ly negotiating with government for an Oranto and the Uganda government are exploration license for the Ngassa oil well, expected to sign an agreement by the a couple of months after the company second week. noted it was not comfortable with Ugan- The Ngassa oil well is said to have as da’s decision to award an equal stake in much potential as the giant Kingfisher the well with fellow Nigerian firm, Niger field that holds more than 500 million Delta Petroleum Resources, our sources barrels of oil. have told us. Oranto’s vast experience - it holds licens- In pushing out Niger Delta, Oranto has es in Nigeria, Ivory Coast and Namibia - is executed its first major boardroom coup no match for Niger Delta. and made a statement of intent of its In late July, Niger Delta Exploration plans in Uganda. & Production Plc, the parent company In August, the Uganda government, in of Niger Delta Petroleum Resources, completing the country’s first competi- announced that a funding exercise that tive round for oil blocks, awarded equal started in 2013, where the company exploration rights over the deep Ngassa sourced for $80 million from the issu- oil well, which is located on the banks ance of convertible loan notes, had been of Lake Albert, to both Oranto and Niger completed. Delta. However, Oranto protested on The Ngassa oil well requires substantial grounds that Niger Delta did not have the amounts of investment.
    [Show full text]
  • GET Fit Performance Review and Baseline
    First Performance Review and Baseline Report for GET FiT Uganda Background In 2015 the German Financial Cooperation in partnership with the Republic of Uganda procured an independent evaluation and performance review of the Global Energy Transfer Feed-in Tarrif (GET FiT) programme, managed by Kreditanstalt für Wiederaufbau (KFW). The first deliverable under the Terms of Reference was the First Performance Review and Baseline Report which can be found attached. An advisory group provided oversight and direction to KFW. The role of the advisory group was to review the technical quality of the evaluation and to ensure that the design and implementation were robust and credible and would stand up to external scrutiny. The advisory group comprised of representatives from KFW, the GET FIT Secretariat, the UK Department of Business, Energy and Industrial Strategy (BEIS) and the UK Department for International Development (DFID). Included in this group were evaluation specialists, economists and programme managers. The advisory group provided feedback to the contracted evaluation team, Castalia, on their deliverables (October 2015 – August 2016), including specifically on the ‘Evaluation and Performance Review of the GET FiT Uganda Program, Inception Report’ and ‘First Performance Review and Baseline Report for GET FiT Uganda’. Detailed below is a summary of the groups’ comments on the First Performance Review and Baseline Report for GET FiT Uganda. Overall The advisory group consider that the report identifies some interesting findings and recommendations as well as raising some questions and generic lessons to consider in the future implementation of GET FiT. However, the group consider that that the value of the report has been limited by its design, the application of methods, and the presentation of findings.
    [Show full text]
  • Uganda UGANDA
    South Sudan DR Our Congo Network Kitgum Distribution Albert Nile Gulu in Uganda UGANDA Umeme’s 458,000 customers are located mainly in urban centres. Lira Masindi Umeme’s footprint extends for 1 km Soroti around the backbone line Lake Albert Hoima Lake Kyoga Bombo V i c Mbale t o r ia N Tororo i Mityana l Fort Portal e Iganga Kampala Jinja Kenya Kasese L. George Entebbe Katonga l Lake Kazinga Channe Masaka Edward Bushenyi Lake Victoria Mbarara Kabale Tanzania Rwanda Highlights Page 2-3 Messages from Staff Page 4-5 Appreciation for Umeme’s Service Page 6 Umeme Relies on Local Suppliers Page 7 Board of Directors Page 8-9 Safety is Paramount Page 10 Message by the Chairman of the Board Page 11 Customer Contact Centre Page 12 Message by the Managing Director Page 13 Umeme’s Control Centre Key Umeme Staff Page 17 Financial Report for 2011 Page 18 Umeme powers Kampala Company Information Page 18 Report of the Directors Page 19 Statement of the Directors’ Responsibilities Page 23 Financial Statements Page 24 Income Statement Page 25 Statement of Comprehensive Income Page 26 Statement of Financial Position Page 27 Statement of Changes in Equity Page 29 Statement of Cash Flows Page 30 Notes to the Financial Statements Page 32 Contents Cover: Pre-payment customers can purchase vouchers at supermarkets like Nakumatt 1 Umeme Annual Report and Financial Statements for the year ended December 2011 VVIWYPXMRKMRWYWXEIWYPXMRKMRWYWXEMRIHKMRIHKVSVS[XLMRXLI[XLMRXLI EERHWMKRMJMGERHWMKRMJMGERXMQTVRXMQTVSZSZIQIRXMRIQIRXMR [LMPWXHIPMZ[LMPWXHIPMZIVIVMRKZEPYIMRKZEPYI
    [Show full text]
  • Contribution of Uganda
    INTERSESSIONAL PANEL OF THE UNITED NATIONS COMMISSION ON SCIENCE AND TECHNOLOGY FOR DEVELOPMENT (CSTD) Geneva, Switzerland 6-8 November 2017 Contribution of Uganda to the CSTD 2017-18 priority theme on ‘The role of science, technology and innovation to increase substantially the share of renewable energy by 2030’ DISCLAIMER: The views presented here are the contributors' and do not necessarily reflect the views and position of the United Nations or the United Nations Conference on Trade and Development. 1. What are the national policies (renewable energy Strategies, regulations, standards, fiscal measures, financial incentives, etc.) in place that encourage renewable energy projects or aim at increasing the share of renewable energy in Uganda’s energy mix? The Energy Policy for Uganda 2002 The Renewable Energy Policy for Uganda 2007, which is currently under review; The Biomass Energy Strategy by MEMD of 2014; The RE Investment guide of 2012 by MEMD, GIZ Scaling up Renewable Energy Program Uganda 2015 The SE4ALL action Agenda for Uganda 2015 by MEMD Energy week (awareness program) by MEMD for all players Rural electrification strategy and plan 2013 to 2022; REA can fund CAPEX up to 70% for mini-grids Electricity Regulatory Authority (ERA) procedures on acquisition of permits and licences National Environment Management Authority (NEMA) procedures on EIAs and permits DWRM procedures on hydro projects Uganda Electricity Credit Capitalisation Company (UECCC) and the banks receiving guarantees from them on enhancing access to finance Subsidies and tax waivers eg on solar by URA, MEMD UBOS household surveys and renewable energy resource mapping Uganda National Bureau of Standards (UNBS) standards and affiliated certified renewable energy labs like CREEC.
    [Show full text]
  • Annual Report 2015 – 16
    ANNUAL REPORT 2015 – 16 1 ANNUAL REPORT 2015 - 16 The cover photograph is of the 10 MW Access Uganda Solar Plant, the first-ever Grid-connected Solar Photo Voltaic plant in Uganda, which was licensed by ERA in the financial year 2015/16. 2 ANNUAL REPORT 2015 - 16 ANNUAL REPORT 2015 – 16 3 ANNUAL REPORT 2015 - 16 Stakeholders at the GETFiT Forum Dinner and launch of ERA’s new corporate identity. iv ANNUAL REPORT 2015 - 16 Table of Contents 1.0 WHO WE ARE .................................................................. 1 3.7 Quality of Service...................................................... 21 1.1 Our Functions .............................................................. 1 3.8 Energy Efficiency .......................................................21 1.2 Strategic Objectives .................................................. 2 3.9 Improvement of the Distribution Network .............. 22 1.3 Our Vision .................................................................... 2 4.0 MONITORING AND ENFORCEMENT OF COMPLIANCE .. 23 1.4 Our Mission .................................................................. 2 4.1 Statutory Inspections ................................................ 23 1.5 Our Core Values ......................................................... 2 4.2 Environmental Monitoring and Compliance ........ 23 1.6 Regulatory Principles .................................................. 3 5.0 PERFORMANCE OF THE ELECTRICITY SUPPLY INDUSTRY .. 25 Members of the Electricity Regulatory Authority .............. 4 5.1 Loss Reduction
    [Show full text]
  • Executive Summary
    April, 2017 EXECUTIVE SUMMARY o much is going across all the sec- June this year. Kenya Pipeline Company tors we cover in Uganda. Cnooc, recently signed a three-year lease agree- Sa company that prefers to stay in ment to take over the facilities of Kenya the shadows, is slowly positioning itself Petroleum Refineries Limited at Mom- in preparation for the construction of basa, the last point that the crude will the crude oil pipeline from Uganda to be received before it is exported out of Tanzania. the country. This report goes further to Dao Marble Uganda Limited, the show what else Kenya Pipeline is doing company that once promised to take and what that means for the region. Uganda’s marble to foreign markets to In Tanzania, Africa’s richest billionaire, compete with other first-class gems, is Aliko Dangote, has managed to get the limping as a result of financial troubles. government there to extend power to One bank, company staff and other ser- his cement company. The Dangote group vice producers are hounding a top Dao was increasingly getting frustrated at the Marble official over unpaid dues. huge amounts of money it was spend- The Uganda Electricity Generation ing to buy diesel to power its machines. Company Limited is drawing up new An executive order from President John rules of engagement to deal with Chi- Pombe Magufuli has seen Tanzania Pe- na International Water and Electric, the troleum Development Corporation en- Chinese contractor at Isimba dam, after sure that gas power is taken to the plant. a series of letters and approved engi- The first power plant to serve three neering designs were ignored.
    [Show full text]
  • Overview Politics & Policy
    MONTHLY BRIEFING SERIES 03/07 March 2017 Overview Andrew Felix Kaweesi, an Assistant Inspector General of Police and the force's spokesperson, was gunned down about a mile from his home. Kaweesi was murdered together with his driver and bodyguard, both police officers. Several arrests have been made, but police are yet to apprehend the killers. Annual headline inflation for the year ending March 2017 declined to 6.4% compared to the 6.7% recorded in the year ending February 2017. The decline was due to a fall in annual core inflation to 4.8% versus the 5.7% recorded in the year ended February 2017. China National Offshore Oil Corp, one of the firms exploring for oil in Uganda, expressed interest in acquiring half of the 21.57% shares Tullow Oil announced it was selling to Total E&P Uganda in January. Cnooc's interest was revealed by Tullow. The transaction is subject to regulatory approval. Politics & Policy Andrew Felix Kaweesi, an Assistant Inspector General of Police and the force's spokesperson, was gunned down about a mile from his home. Kaweesi was murdered together with his driver and bodyguard, both police officers. He was shot in the morning on his way to work. Eyewitnesses say Kaweesi was killed by two gunmen on two motorcycles driven by accomplices. Several arrests have been made, but police are yet to apprehend the killers. Several motives have been floated, including rivalries within the police force and that he was murdered by ADF rebels. The police spokesperson says investigators are looking at several angles.
    [Show full text]