THE REPUBLIC OF UGANDA

KEY NOTE SPEECH

BY

HON. ENG. SIMON D’UJANGA

MINISTER OF STATE FOR ENERGY

ON THE OCCASION OF THE POWER FORUM 2020 HELD

AT GOLDEN TULIP CANAAN HOTEL, KAMPALA

DATE: FRIDAY DECEMBER 4, 2020

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The Permanent Secretary,
Government Officials present,
CEOs of Energy Agencies,
Development Partners,
Representatives of the Private Sector,
Distinguished Participants,
The Press,
Ladies and Gentlemen,

INTRODUCTION
1. I am delighted to be here today to deliver this keynote on:
“Government strategy on policy, regulatory and institutional
framework to support increased access to power” at this
power forum. I am aware that this event has been organized
with the goal of engaging key stakeholders on various issues
in the power sub-sector and finding common grounds with
regard to the strategic direction to address them in order to
improve service delivery in the power industry.
2. This Forum is very important realizing that Government is
committed to improving electricity generation, transmission
and distribution to support industrialization as well as
ensuring that we increase the level of access to affordable,
reliable and modern energy services.
3. In addition to that, we all agree that access to modern energy
services is a necessary precondition for achieving
sustainable development goals such as poverty reduction,
access to clean water, improved public health, better
education, women’s empowerment and increased food
production.

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CHALLENGES FACED IN THE POWER SUB SECTOR
4. In an effort to provide and increase access to affordable and
reliable electricity supply, the sector has faced several
challenges:
i) Limited capacity in the transmission and distribution
network to absorb additional electricity to be generated
from the plants under construction;
ii) The current low level of grid electrification estimated at
about 24% which is an impediment to the achievement
of our National Vision 2040 which is “A Transformed
Ugandan Society from a Peasant to a Modern and
Prosperous Country within 30 years”.
iii) Affordability of electricity by the consumers: This is
partly caused by inflation of the Ugandan currency
against the United States America Dollars and the
additional resources required for operating and
improving the network.
iv) In some part of the country we have intermittent and
unreliable supply of electricity.
5. I am glad to note that a roadmap for the transformation of the
Power sector has been developed aimed at addressing the
challenges in providing adequate, affordable and reliable
power supply. I thank the UK government for supporting
government in the development of the roadmap.
6. This is in line with Government strategic plan that made
energy a key sector for development and emphasis has been
put on these priorities:
i) increase electricity generation capacity and
transmission network;

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 ii) increase access to modern energy services through
rural electrification and renewable energy development;
iii) promotion of energy efficiency and power loss reduction.
7. These priority areas are key to the development of the energy
sector which is a key driver to the social economic
development of Uganda. For this keynote I will focus on
increasing access to modern energy services

MEASURES PUT IN PLACE TO ADDRESS THE

CHALLENGES
A. INSTITUTIONAL FRAMEWORK
8. Government has established an institutional arrangement for
the management of Uganda’s energy resources.
9. The Ministry of Energy and Mineral Development is
mandated to establish, promote, strategically manage and
safeguard the rational and sustainable exploitation and
utilisation of energy resources for social and economic
development. The Directorate of Energy Resources
Development is responsible for the overall energy policy
formulation and implementation and is comprised of four
departments (Electric Power Department, Renewable Energy
Department, Energy Efficiency and Conservation Department
and Nuclear Energy Department).
10. In regards to electricity access, the institutions under the
supervision of the Ministry include:
i) Uganda Electricity Generation Company Limited
(UEGCL) is responsible for generation and sale of
electric power;
ii) Uganda Electricity Transmission Company Limited
(UETCL) is responsible for bulk purchase and sale of
electricity and is the grid network operation;

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 iii) Uganda Electricity Distribution Company Limited
(UEDCL) owns and operates the electricity distribution
network;
iv) Rural Electrification Agency (REA) implements the rural
electrification agenda under a public-private
partnership;
v) Electricity Regulatory Authority (ERA) regulates the
generation, transmission, distribution, sale, export and
import of electricity in Uganda;
vi) Uganda Energy Credit Capitalisation Company
(UECCC).

B. POLICY FRAMEWORK
11. The energy sector is guided by the Energy Policy for Uganda
2002 and the Renewable Energy Policy 2007. The goal of the
Energy Policy 2002 is to meet the energy needs of Uganda’s
population for social and economic development in an
environmentally sustainable manner. The goal of the
Renewable Energy Policy 2007 is to provide a framework for
increasing, in significant proportions, the contribution of
renewable energy in the energy mix.
12. These two policies have facilitated the increase in installed
electricity generation capacity from 183MW in 1997 to
1,252MW currently; the level of energy access is now over
50% with 24% connected to the grid; energy losses have
reduced from 38% in 2005 to 17.5% currently and during the
same period; private sector investment of nearly $2bn has
been brought into the sector.
13. The Energy Policy for Uganda 2002 and the Renewable
Energy Policy 2007 are under review. The policy review is

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 very important realizing that a lot has changed from the time
the Energy Policy of 2002 and the Renewable Energy Policy
2007 were put in place.
14. To accelerate rural electrification in the country, in 2013,
Government put in place the Rural Electrification Strategy
and Plan (RESP) covering the period 2013 to 2022. This
strategy is aimed at facilitating accelerated access to modern
energy services for the rural communities.
15. Government is developing a “National Electrification Strategy
(NES)” aimed at achieving electricity access by every
Ugandan, taking into consideration technical, institutional,
policy, regulatory, legal, and financial aspects. The NES is a
key element in our mandate to update and consolidate the
multiple strategy papers related to access to electricity.
C. LEGAL FRAMEWORK
16. The Electricity Act of 1999 sets out the legal framework for
the electricity sub-sector. Consultations with the key
stakeholders on the amendment of the Electricity Act 1999
have been concluded and drafting of the Electricity
Amendment bill 2019 finalized.
17. I am glad to note that the Electricity Amendment Bill 2019 has
been presented to Cabinet for approval.

PROGRESS MADE ON ELECTRICITY GENERATION

18. Following the commissioning of the 183MW Isimba Power
Plant last Year, Uganda’s current electricity generation
capacity to 1,252MW today.

19. This generation capacity is expected to exceed 2,000MW by

2021 due to additional generation expected from Karuma
(600 MW) and several small hydro power plants such as

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 Kikagati (16MW), Nyamagasani I (15MW) and Nyamagasani
II (5.9MW) and solar power plants.

20. Other Generation projects being developed include: Ayago

(840MW), Orianga (392MW), Kiba (400MW), Achwa I
(42MW), geothermal (450MW), 50 MW from Cogeneration by
private companies in sugar production using bagasse; small
hydropower plants with a total capacity of over 150 MW being
developed by the private sector; and construction of about 60
MW from Solar PV by the private sector.

PROGRESS MADE ON ELECTRICITY TRANSMISSION

21. To ensure that power generated is evacuated and consumed,
Government is expanding the power transmission
infrastructure through the construction of several high
voltage, medium voltage and low voltage power lines and
associated substations.

22. The transmission network currently stands at 2,989Kms of

high voltage lines, representing 1,008km of 220kV
transmission lines and 1,946km of 132kV transmission lines
and 35km of 66kV transmission line. Government is soon
completing the Karuma-Kawanda 400KV high voltage line to
evacuate power for Karuma HPP.

23. We do recognize that additional investments will be required

in the transmission and distribution segments to match the
investment made in the generation segment. I have engaged
my colleague at the Ministry of Finance, Planning and
Economic Development to secure additional financing to
meet the funding gap in the transmission, distribution and
rural electrification.

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STRATEGY TO ENSURE GROWING DEMAND FOR
ELECTRICITY
24. Government has a keen interest to grow demand for
electricity through the promotion of productive use of energy
as well as the creation of industrial parks. The Industrial parks
are projected to increase electricity demand by 1000 MW. To
date, high voltage lines to supply Iganga Industrial Park,
Mukono Industrial Park, Kapeeka Industrial Park, Kampala
Industrial and Business Park (KIBP) and the Mbale Industrial
Park have been completed.

25. Electricity has been extended to all District Headquarters

(with the exception of Kaabong which is expected to be
complete by December 2020).

26. We have commenced on the electrification of Sub-county,

Division and Town Council headquarters, and works are on-
going in 25 districts covering 570 sub county headquarters.

27. With regard to industrial electricity consumers, the rebate

system provides for reimbursement of the cost of design,
finance and construction of the electricity distribution
infrastructure to their facilities in terms of energy consumed
to cover the cost incurred.

RURAL ELECTRIFICATION PROGRAMS TO INCREASE

ACCESS TO ELECTRICITY
28. In line with the Rural Electrification Strategy and Plan to
achieve 60% by 2027 access we are using three approaches.
These include:

i) Expanding the grid infrastructure ensuring that large

quantities of power are provided at affordable tariffs. We

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 are focusing on grid intensification to major rural growth
centres, and fast-tracking electrification of all sub
counties.

ii) Establishment of Mini-grids in the various parts of the

country. The min-grids can effectively serve isolated, yet
clustered populations. Off-grid electrification is done by
private companies using standalone energy solutions
and so far 13 mini-grids are in operation. We have
tendered out 40 mini-grids to be developed and
operated by private sector and estimated to provide
4,000 connections.

iii) The third alternative is the isolated solar home systems

and solar appliances. These provide valuable energy
services in the form of lighting and power for electronics.
Government is providing credit support through solar
loans which are managed by commercial banks and
Micro finance Institutions to enable households acquire
the systems.

STRAGY TO ENSURE AFFORDABLE ELECTRICITY TARIFF

29. When Karuma Power Plant is commissioned and fully
absorbed/utilized, it is expected that the weighted generation
tariff will reduce from the current US Cents 6.47/kWh (Ush.
243.43) to US cents 5.34/kWh (Ush.200.93), representing a
reduction of 17.45%.

30. The target of 5 US Cents per unit of electricity has already

been achieved during off-peak hours for extra-large
consumers. This was possible following the conclusion of
refinancing Bujagali Hydro Power Plant (tariff reduced from
10.1 US Cents to 8.3 US Cents).

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31. Further reduction on the tariff will be achieved when we grow
demand for the additional power to be generated.

CONCLUDING REMARKS
32. As I conclude, Let me take this opportunity to thank our
Development Partners who have supported the sector to
enable us improve service delivery.

33. I thank the sector players and the power consumers for
coming to the power forum. We are glad you are here for this
engagement whose outcome will inform government on how
to improve service delivery.

34. I would like to thank the Foreign, Commonwealth &

Development Office (FCDO) from the United Kingdom (UK)
for financing the roadmap.

35. I wish also to thank the sponsors of this Power Forum

including World Wide Fund for Nature (WWF), Cities and
Infrastructure for Growth (CIG), German Development
Agency (GIZ), Eskom Uganda Limited, Power for All and
Electricity Regulatory Authority (ERA).

36. I wish to assure all of our stakeholders that Government is

committed to providing affordable and reliable power supply.

37. Finally, I have the honour and privilege to launch the

Roadmap for Catalytic Power Sector Transformation
(RCPT) (2020 – 2025).

For God and My Country!

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