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.