Thinking of developing mini-grid project in Uganda?
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Mini-grids are small-scale electricity distribution systems that generate, store, and distribute energy to localized areas, such as rural or off-grid communities. They are a reliable, flexible, and cost-effective way to provide clean energy access to underserved regions. https://nrep.ug/technologies/mini-grids/
They can be fully isolated from the main grid or connected to it but able to intentionally isolate (“island”) themselves from the grid. A new, “third generation” of mini-grids has recently emerged. They incorporate the latest technologies, such as smart meters and remote monitoring systems, and are typically designed to interconnect with the main grid
Energy Sector Management Assistance Program. 2022. Mini Grids for Half a Billion People: Market Outlook and Handbook for Decision Makers. Washington, DC: World Bank.
Mini-grids are one of the fastest and most cost-effective ways to electrify rural communities. They support economic growth, enable job creation, improve healthcare and education, and enable productive businesses through electricity access. (Electrification & Report, 2021)
https://nrep.ug/wp-content/uploads/2024/09/NES-STUDY-REPORT-1.pdf
They serve different needs. Solar home systems provide electricity to individual households, while minigrids supply electricity to entire communities and can power businesses, machinery, and institutions. They are complementary technologies.
IEA (2024), SDG7: Data and Projections, IEA, Paris https://www.iea.org/reports/sdg7-data-and-projections, Licence: CC BY 4.0
Yes. Uganda’s regulatory framework allows mini-grids to integrate with the main grid. Developers may continue operating as Small Power Producers/Distributors or negotiate asset transfers when the grid arrives. For more details refer to https://www.era.go.ug/ , (Electricity Isolated Grid System Regulation 2020.Pdf, n.d.)
Modern mini-grids are highly reliable and are designed to provide continuous power through battery storage and smart energy management systems
The National Renewable Energy Platform reports that Uganda currently has about 45 operational minigrids (totalling 3.87 MW of installed capacity). Another 42mini-grids have been licensed but are not yet operational, over 166 minigrids planned with funding committed and over 469 in the master plan. https://nrep.ug/technologies/mini-grids/
Mini-grids in Uganda are regulated under the Electricity (Isolated Grid Systems) Regulations, 2020. The regulation can be downloaded from the Electricity Regulatory Authority (ERA) website (Electricity Isolated Grid System Regulation 2020.Pdf, n.d.) https://www.era.go.ug/ , https://www.era.go.ug/regulations-codes/
According to ERA Licensing Guidelines, projects below 2 MW are exempt from full licensing requirements, but developers must still obtain a License Exemption Certificate from the ERA. Developers intending to set-up mini-grid projects where the generation capacity does not exceed 2 megawatts (MW) apply to ERA for an exemption from the requirement to hold a license for the generation, distribution or sale of electricity. https://www.era.go.ug/licensing-procedure/
Although regulations suggest approvals within 90 days, developers often experience delays due to multiple agency approvals and licensing procedures. Some projects tend to take up to one year from the start of the application for approval to when the approval is issued. https://www.era.go.ug/licensing-procedure/
According to unpublished data from the Ministry of Energy and Mineral Development (MEMD), there are currently 11 licensed private companies that are operating mini-grids in Uganda. These include NOA Uganda, Equatorial Power Ltd, Engie Energy Access, Mandulis Energy Ltd, Sagewood Ltd, NRECA International, Kalangala Infrastructure Services Ltd, Solargen Ventures (U) Limited, Absolute Energy Ltd, former KRECS now taken over by UEDCL, and Pamoja Energy Ltd.
In terms of current market share (focusing on installed sites to date), NOA Uganda can be seen as the leading market player. However, other private companies like Equatorial Power and Mandulis Energy continue to develop new mini-grids in addition to their already existing portfolios.
The Ministry of Energy has prepared a National Electrification Strategy which includes a total of 2, 712 potential mini-grid sites available for development. The National Electrification Strategy (NES) can be found on the MEMD website under the GIS unit.
However, developers must get written confirmation from the MEMD regarding the available sites.