ANNUAL REPORT
2019
SUPPORTED BY
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Annual
Report
2019
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have been prepared by
GET FiT Uganda
2
Annual Report 2019
3
T
he Global Energy Transfer for Feed-in Tari
(GET FiT) Programme has left its mark on the
Ugandan power sector. At the end of 2019, ap-
proximately 50 percent of all energy generation pro-
jects in the country were procured and supported
by the GET FiT Programme, contributing to a greatly
diversied power sector – institutionally, technologi-
cally and geographically.
When the GET FiT Programme was developed in
2012 by the Electricity Regulatory Authority on be-
half of Government, and the German development
bank KfW, the prospect of local shareholding in
power plants in Uganda was almost inconceivable.
Yet through the GET FiT portfolio, the Nkusi (9.6 MW),
Kyambura (7.6 MW) and Waki (4.8 MW) small hydro-
power plants that have a component of local share-
holding have come to life.
Following the conclusion of funding and the success
story of GET FiT in Uganda, it became a model pro-
gramme which has been rolled out in other countries
on the continent of Africa; in terms of implementati-
on of small-scale renewable energy projects and the
attraction of private nance into the energy sector.
I wish to convey special appreciation to the Govern-
ment of Uganda and the Ministry of Energy and
Mineral Development for trusting ERA as the GoU
implementing agency, the Governments of the Uni-
ted Kingdom, Norway and the Federal Republic of
Germany; the European Union, and other govern-
ment agencies and stakeholders for making the GET
FiT concept a huge success. Because of your unwa-
vering support, Uganda is now a renewable energy
investment model for the rest of Africa!
Message from ERA
As we edge towards the completion of the GET FiT Pro-
gramme implementation in Uganda, the Electricity
Regulatory Authority is especially delighted to have sup-
plemented eorts by the Government of Uganda to rea-
lize Vision 2040; through harnessing Renewable Energy
to provide adequate generation capacity way before the
commissioning of the large hydropower plants. Indeed,
I can conrm that the GET FiT Programme has achieved
the key objective for which it was established.
Eng. Ziria Tibalwa Waako | Chief Executive Ocer, ERA
GET FiT Uganda
4
Annual Report 2019
5
T
he GET FiT Uganda programme made further
progress in 2019 with the commissioning of
four additional small hydropower projects, na-
mely Sindila, Siti 2, Kyambura and Ndugutu. This ad-
ded over 35 MW in installed capacity and an estima-
ted annual generation of 162 GWh to the Ugandan
National Grid. In total, 14 of the 17 projects in the
portfolio were operational at the end of 2019, repre-
senting 122 MW (77 %) of the targeted 158 MW of
installed capacity. The remaining three projects are
expected to be commissioned in 2020-21.
Besides the additional capacity for the country, the
programme has also delivered on local content by
creating approximately 10,000 jobs, comprised of
circa 90 % Ugandan employees, spurring the local
economy.
Moreover, GET FiT is supporting upgrades to the
33 kV transmission grid infrastructure in Western
Uganda to ensure full evacuation of ve projects, as
well as an upgrade of the Opuyo substation in the
East.
Key challenges in 2019 included delays in the im-
plementation of the 33 kV grid reinforcements as
a result of unexpectedly high wayleave costs, envi-
ronmental and social compliance of commissioned
projects and extended construction timelines of
projects not yet commissioned. Addressing these
will be a priority for the programme during 2020 to
ensure its success.
As this is the last annual report to be published on
this programme, it is the right time to pay tribute to
the founders and implementing partners of this very
successful and innovative programme. KfW has ma-
naged to spur a good spirit of cooperation among
several development partners (Norway, UK, Germa-
ny and the EU), private investors and the Ugandan
administration that yielded the good achievements
mentioned in this report. Indeed GET FiT set seve-
ral records: the rst competitive auction program-
me for renewables in East Africa, the –then- biggest
grid-connected solar PV plant in East Africa to name
a few. And other countries have now replicated this
same model.
The EU with its expertise and the right nancial
instruments, like the External Investment Plan, will
remain a good partner of Uganda in this eort.
Congratulations to all for all these achievements.
Message from EU
It is also not a coincidence that the Electricity Regulatory
Authority (ERA) was ranked best regulator in the 2019
Electricity Regulatory Index for Africa. ERA has put in
place with GET FiT an attractive regulatory framework
and investment climate for private investment in the re-
newable energy space. It is a good example on how we
can work together to promote investments but also to
lead the way towards an inclusive, green economy in
this country.
Attilio Pacici | Ambassador of the European Union
GET FiT Uganda
6
Annual Report 2019
7
Executive Summary
P
owering growth. In 2019, GET FiT supported
power plants provided approximately eight
percent of the total electricity supply in Uganda.
This was despite the commissioning of a new large
hydropower project on the Nile (Isimba, 183 MW),
which reportedly generated approximately 16 per-
cent of the total national supply during its rst ope-
rational year. In more round about terms, it is safe
to say that GET FiT is currently powering almost one
out of ten Ugandan electricity customers. Due to late
commissioning of several plants in 2019, and a few
projects still under construction, the annual energy
delivered from GET FiT Uganda will increase further
over the next two years.
With more than 50 million people and an on-grid
electricity access rate below 30 percent, Uganda
faces a challenging path towards the ultimate target
of universal access to electricity. While considerable
investments in large hydropower are currently being
undertaken, these are largely centred on the Nile
and ultimately dependent on Lake Victoria water le-
vels, which cause vulnerability. With an increasingly
robust portfolio of hydro, solar and biomass power
plants, GET FiT has added much needed geogra-
phical and technological diversity to the power mix
according to the key sector institutions Uganda Elec-
tricity Transmission Company Limited (UETCL) and
the Electricity Regulatory Authority (ERA). In terms of
national supply security, this aspect may turn out to
be equally important as to the mere level of electri-
city generated.
Attracting investments. With 14 new power plants
built in no more than six years (and three more yet to
come), GET FiT Uganda has proven its unique ability
to attract private sector investments. As of 2019, the
Programme has leveraged over USD 455 million in
private investments, including USD 165 million of pri-
vate commercial nancing. After closing the GET FiT
funding window, the private sector interest in rene-
wable energy development has remained very high
in Uganda, with a range of solar, hydro and biomass
projects now being developed without subsidies; 17
additional small-scale IPP projects have been issued
generation licences and three have been construc-
ted to date, still utilising and benetting from the
standardised PPA framework put in place through
the GET FiT Technical Assistance Facility. Some of
these projects are also being developed by GET FiT
developers and/or contractors, building further on
the competence and experience they have gained
from within the Programme.
Best in Africa. While long-term eects of the Pro-
gramme are still to be observed, indications of in-
creased sector and regulatory capacity can already
be reported in 2019: This year ERA issued 12 gene-
ration licences and development permits for new
renewable IPPs, which already meets ERA’s 2023 tar-
get. Adding to this, more timely and complete repor-
ting by electricity sector licensees was observed over
the last year. GET FiT supported the development of
a new reporting framework, which appears to have
strengthened ERA’s ability to monitor and manage
sector performance.
It is encouraging to note that the increasingly robust
and conducive regulatory environment created by
ERA and other stakeholders is well recognised in-
ternationally - for the second time in a row, Uganda
was ranked number one in the Electricity Regulatory
Index for Africa in 2019, by the African Development
Bank!
Creating jobs. With a high level of construction
activities in 2019, job creation from the portfolio
continued to be substantial. Since the Programme
was launched in 2013, an accumulated total of over
10,000 jobs (Full-time equivalent - FTE) have now
been created through the project portfolio, with al-
most 90 percent of those jobs being occupied by
Ugandan sta. This refers to direct jobs only, asso-
ciated with development, construction and opera-
tion of the respective power plants. The potential
indirect job creation due to, for example, local eco-
nomic growth, is not included but is expected to be
signicant.
Portfolio and performance. The GET FiT Uganda
Programme made substantial progress in 2019. Four
of the seven remaining hydropower projects with a
total capacity of 35.3 MW were commissioned during
the year including the Sindila SHP (5.3 MW), Ndugu-
tu SHP (5.9 MW), Kyambura SHP (7.6 MW) and Siti 2
SHP (16.5 MW). These newly commissioned projects
GET FiT Uganda
8
resulted in the GET FiT portfolio reaching an installed
capacity of 122.4 MW out of the expected 158.4 MW.
The GET FiT Portfolio of 14 operational projects now
consists of 11 small hydropower projects (SHPs) with
a combined installed capacity of 82.4 MW, two solar
PV projects with a combined installed capacity of
20 MW, and one bagasse co-generation project with
20 MW installed capacity, all delivering clean, rene-
wable energy to the Ugandan grid. Some of the ear-
lier commissioned projects, now in their second or
third year of operation, were able to ramp up their
production to higher levels due to grid improve-
ments. Overall, GET FiT projects delivered a total of
circa 315 GWh in 2019, out of a total national supply
of approximately 4,350 GWh.
At appraisal stage, the average annual generation of
the portfolio’s SHPs were estimated based on availa-
ble gauged ow data, which was often incomplete or
considered to be unreliable. With many of the plants
now operational, the SHP generation data can be
used to provide a more reliable and accurate record
of the available hydrology at each plant each plant
and river.
Comparing the SHPs’ operational data with the es-
timated hydrology at appraisal stage indicates that
the hydrology for 2019 was generally within the
expected variation of an average hydrological year.
The generation potential of the plants was generally
either slightly more or less than the annual estima-
te at appraisal stage, with the overall average gene-
ration potential of SHPs equivalent to 107 % of the
estimated total. Due to the partial availability of the
grid, however, only 77 % of the electricity was actu-
ally delivered.
The nish line. With only three hydropower sche-
mes still under construction, the full GET FiT portfo-
lio is coming to fruition, with the remaining projects
expected to commission in 2020-21. Actions have
been taken by the Programme to incentivise Develo-
pers to minimise commissioning delays beyond the
original 2018 funding window, including additional
supervision visits and nancial penalties in the form
of subsidy reductions for delays. While several pro-
jects have responded positively and with increased
eorts, the remaining projects still have work to do:
Nyamagasani 1 SHP (15 MW) still has remaining
construction challenges to be solved. Construc-
tion of the plant has been characterised by poor
progress, and a landslide in the beginning of 2019
exacerbated this further, making works at the
upper headrace canal, weir and intake challenging.
Commissioning is currently expected in Q4 2020.
Nyamagasani 2 (5 MW) is located downstream of
Nyamagasani 1, forming a cascade. Except for the
land slide, the project has been facing similar chal-
lenges as its neighbouring project and is expected to
reach commissioning stage during Q2 or Q3 in 2020.
Annual Report 2019
9
For Kikagati (16 MW), key design issues were
still to be resolved by the end of the year 2019,
though the Developer still planned to achieve the
contractual Commercial Operation Date (COD) by
Q3 2020. There are, however, substantial cons-
truction works and risks remaining and there is
potential for COD to be delayed until early 2021.
Construction works for Kikagati SHP will expand
across the border into Tanzania during 2020, and
harmonisation and continued coordination with
respect to requirements in the two countries is
essential to avoid further unexpected delays.
Grid connection. In 2019, more than 20 % of the
planned energy generation from GET FiT plants was
not delivered due to missing or inadequate grid
infrastructure, or insucient grid capacity. Corre-
sponding to approximately 96 GWh of renewable
energy generation, this is a severe socio-economic
loss and an unacceptable nancial burden on the
Government, which ultimately must be carried by
Ugandan electricity customers. Development part-
ners have provided considerable funding towards
reinforcement of the local grid infrastructure to faci-
litate power evacuation from GET FiT projects. While
contractors were mobilised in 2018-19 for some of
the most critical components, other reinforcement
needs are still not properly addressed or are behind
schedule. This represents an operational, nancial
and reputational risk to the Ugandan power sector
and to the GET FiT Programme. GET FiT maintains
a close dialogue with the GoU agencies to facilitate
high-level attention and coordination in fast-track-
ing the grid infrastructure, which will continue in the
forthcoming year.
Outlook. With 14 of the 17 GET FiT projects now
delivering power to the Ugandan grid, 2020 will be
another exciting year for the Programme with per-
sistent challenges and a lot to celebrate. Helping
newly commissioned projects to achieve a success-
ful rst year of operation will be important, along
with close follow-up for the remaining plants that
are severely behind on their construction schedules
but forecast by their respective Developers to com-
mence commercial operations this year. As in previ-
ous years, continued eorts to ensure progress on
grid infrastructure investments that aect GET FiT
projects remain critical.
The nish line for GET FiT Uganda is undoubtedly ap-
proaching fast, after more than seven years of hard
and dedicated work by a range of Ugandan stake-
holders, project developers and development part-
ners. Certainly, the Programme is already a success
story, now contributing almost one tenth of Ugan-
da’s electricity from clean and renewable sources,
funded mainly by private investors! However, as this
report shows, work remains. Over the coming years,
coordinated and dedicated eorts will be needed by
all stakeholders to ensure a successful nish and a
sustainable legacy.
GET FiT Uganda
10
Bhatiya Ranatunga | Director, Ziba Limited - Kyambura SHP
Ziba Limited successfully completed the development and commissioning
of the 7.6 MW Kyambura SHP and entered into the operations and main-
tenance phase in July 2019. We have received positive feedback from the
local community, as improved road network in the project area has in-
creased the socio-economic standing of community members through in-
creased access to markets, access to social services and communication.
We are glad to place on record our heartfelt gratitude to the GET FiT Team
for the valuable support and guidance extended on technical, environ-
mental and social aspects of the project during the development phase of
Kyambura project which was truly a challenging construction experience.
Annual Report 2019
11
762GWh/yr
17
Projects
GET FiT PORTFOLIO
Uganda
0
14
Projects Commissioned
Capacity Installed
118.4 MW
581.7 GWh/yr
2014
2015
2016
2017
2019
2,000 3,000
20 MW
33.5 GWh/yr
20 MW
147 GWh/yr
Hydropower
Bagasse
Solar PV
GET FiT Grants
Private Financing
Public Financing
Male
Female
77 %
Of Portfolio
Capacity Installed (MW)
36
$ 290 M$ 165 M
$ 100 M
122
10,379
89 %
Jobs Created
Ugandan Employment
4.6 455
GET FiT
Leverage Ratio
Million USD in Private
Investments Leveraged
1,0000
2018
158MW
14 2 1
Solar PV BagasseHydro
GET FiT Uganda
12
Annual Report 2019
13
Table of Contents
01 About GET FiT Uganda .................................................................................................. 17
02 Project Portfolio Progress ........................................................................................... 19
03 Environmental and Social Performance ................................................................. 45
04 Grid Connection Status and Challenges ................................................................. 49
05 Financial Status ............................................................................................................... 57
06 Programme Monitoring & Risk Management ....................................................... 61
07 GET FiT Zambia ............................................................................................................... 71
08 Outlook for 2020 ............................................................................................................ 73
GET FiT Uganda
14
Annual Report 2019
15
List of Abbreviations
COD Commercial Operation Date
CP Condition Precedent
BEIS Department for Business, Energy & Industrial Strategy
DFA Developer Financing Agreement
DFID Department for International Development, UK
EPC Engineering, Procurement and Construction (a form of contract)
ERA Electricity Regulatory Authority
E&S Environmental and Social
ESIA Environmental and Social Impact Assessment
EU ITF European Union Infrastructure Trust Fund
GHG Greenhouse Gas
GoU Government of Uganda
GWh Gigawatt Hours
IFC PS International Finance Corporation Performance Standards
IPP Independent Power Producer
MEMD Ministry of Energy and Mineral Development
MtCO
2
e Million Tonnes of Carbon Dioxide Equivalent
MVA Mega-Volt-Ampere
MW Megawatts (of installed power capacity) 1 MW = 1000 kilowatts
PPA Power Purchase Agreement
RE Renewable Energy
REA Rural Electrication Agency
RFP Request for Proposal
SC Steering Committee
SHP Small Hydropower Plant
SPCC Sector Planning and Coordination Committee
SSA Sub-Saharan Africa
TA Technical Assistance
UEDCL Uganda Electricity Distribution Company Limited
UETCL Uganda Electricity Transmission Company Limited
GET FiT Uganda
16
Annual Report 2019
17
T
he GET FiT Uganda Programme was ocially
launched on May 31
st
, 2013. The Programme,
which has been developed by the Government
of Uganda and the Electricity Regulatory Authority
(ERA), in close cooperation with KfW Development
Bank, is designed to leverage private investments
into renewable energy generation projects in Ugan-
da. GET FiT is being supported by the Governments
of Norway, the United Kingdom, Germany and the
EU through the EU Africa Infrastructure Fund.
The main objective of the GET FiT Programme is to
assist Uganda in pursuing a climate resilient low-car-
bon development path resulting in growth, poverty
reduction and climate change mitigation by facilita-
ting private sector involvement and improving the
framework conditions for private investments in re-
newable energy. In Uganda, GET FiT is fast-tracking
a portfolio of 17 small-scale renewable energy (RE)
projects, promoted by private developers and with
a total installed capacity of 158 MW. This will yield
approximately 765 GWh of clean energy production
per year, transforming Uganda’s energy mix within a
period of 3-5 years, and resulting in:
Emission reductions of roughly 10 million tonnes
of CO
2
in the 20-year lifespan of Power Purchase
Agreements (PPAs).
An increase in Uganda’s energy production by
about 20 %, and thus a contribution to tackling an
anticipated supply shortage.
Facilitating (or signicantly improving) access to
energy for at least 200,000 additional households
(approximately 1.2 million people) also due to
strengthening of regional grids.
Leveraging more than USD 450 million in public
and private investments for RE generation pro-
jects with a limited amount of results-based grant
funding.
A more comprehensive description of the specic
tools and approaches applied by GET FiT to address
the challenges faced in the Ugandan power sector,
the governance structure of the Programme and,
key activities and achievements so far, is found in
the GET FiT Annual Reports produced since 2013.
01 About GET FiT Uganda
18
GET FiT Uganda
Annual Report 2019
19
A
further four small hydropower projects (SHP)
completed construction works during 2019
and synchronised to the grid – Sindila, Kyam-
bura, Ndugutu, and Siti 2 adding 35.3 MW of power
capacity to the Ugandan grid. Combined with the ten
projects already operational by the end of 2018, the
total installed capacity of operational GET FiT sup-
ported projects is now 122.4 MW approximately
77 % of the total installed capacity to be implemen-
ted under the Programme (158.4 MW).
As a result, GET FiT supported projects supplied circa
315 GWh to the grid during 2019, corresponding to
approximately seven percent of the total grid elect-
ricity supplied in Uganda. Cumulatively, the overall
power supplied to the Ugandan grid by GET FiT sup-
ported projects thus far has totalled circa 750 GWh,
equivalent to a saving of approximately 205,000 ton-
nes of CO
2
due to displacement of power production
from fossil fuelled electricity production.
Progress in 2019 and Remaining
Challenges
Of the seven SHPs still under construction in 2019,
the performance of the Developers and their cons-
truction teams continued to vary substantially. Com-
mendable improvements in construction practices
and construction progress were observed for some
projects, contrasted with continuing design changes,
ongoing contractual challenges, and substantial de-
lays in others.
The Developers of the remaining three SHPs in the
portfolio yet to achieve commercial operation ex-
pect to be delivering electricity to the grid by the
end of 2020, nally unlocking the remaining power
system contribution from the GET FiT Programme.
Of those three, the Nyamagasani 2 SHP is anticipa-
ted to complete construction and synchronise to the
grid during Q2 or Q3 of the year, with the Nyamagas-
ani 1 SHP following in the second half of the year. For
both projects, which are being constructed by the
same Developer, 2019 was characterised by gene-
rally poor construction progress. Contractual chan-
ges implemented by the Developer towards the end
of the year were expected to resolve this issue and
lead to accelerated construction progress in 2020.
Key design decisions had predominantly been resol-
ved for both projects, though for the Nyamagasani 1
SHP substantial construction challenges, risks, and
uncertainties remained. The timely completion of
the power evacuation line to both projects also re-
mained a critical risk.
The last project still under construction, the Kikagati
SHP, had also undergone further design modicati-
ons and optimisations during 2019 and also expe-
rienced construction delays. Substantial challenges
and risks remain, including the potential for delays
from cross-border construction activities between
Uganda and Tanzania, which require careful coordi-
nation and management. Nonetheless, the Project
planned to progressively commission and bring into
operation the three generating units over several
months in the second half of 2020, with all three
units expected to be operational and COD achie-
ved by Q4 2020. There are substantial construction
works and risks remaining in order to commission
the plant, however, and there is potential for COD to
be delayed until early 2021. Either way, construction
of key project structures was planned to continue
into 2021, although the completion of these works
and associated potential construction delays are not
anticipated to aect generation.
Table 1 summarises the status of key project mi-
lestones across the portfolio. Milestones that have
been achieved are indicated by green cells, whereas
the remainder are shown by the white or grey cells.
The expected dates for key milestones that have not
yet been achieved are shown. As indicated, the re-
maining three SHPs are expected to achieve com-
mercial operation in 2020 and 2021.
02 Project Portfolio Progress
2.1 Portfolio Status
GET FiT Uganda
20
No. Project
Generation
Licence
Developer
Financing
Agreement
(DFA)
Power
Purchase
Agreement
(PPA)
Financial
Close
Construction
Start
Commissioning
1
1 Kakira Q2 2012 Q2 2014
2 Kikagati
Q4 2017 Q1 2021
2
3 Kyambura Q3 2017 Q3 2019
4 Lubilia
Q1 2016 Q2 2018
5 Muvumbe
Q3 2015 Q2 2017
6 Ndugutu
Q2 2017 Q4 2019
7 Nkusi
Q2 2015 Q2 2018
8 Nyamagasani 1
Q1 2017 Q4 2020
9 Nyamagasani 2
Q1 2017 Q2-Q3 2020
10 Nyamwamba
Q4 2015 Q2 2018
11 Rwimi
Q3 2015 Q4 2017
12 Sindila
Q1 2017 Q2 2019
13 Siti I
Q1 2015 Q2 2017
14 Siti II
Q3 2016 Q3 2019
3
15 Soroti Q1 2016 Q4 2016
16 Tororo
Q1 2017 Q3 2017
17 Waki
Q2 2015 Q4 2018
Table 1 | Project Milestones Overview
1
Whilst the Developer of the Kikagati SHP expects to commission all three generating units and achieve COD in Q4 2020, there is potential for COD to be
delayed until early 2021. The completion of key project structures will, nonetheless, continue into 2021 and GET FiT estimates that construction works will
not be completed until Q2-Q3 2021.
2
As acknowledged in the 2017 Annual Report, GET FiT recognises the unique transboundary challenges experienced by the Kikagati SHP and the resulting
impact on the implementation timeframe. Delays were further exacerbated during the rst half of 2018 by key changes in contracting arrangements –
further details are provided in Section 2.2.
3
Pending approval by GET FiT.
Consequences of Delayed CODs
During 2018, the GET FiT Steering Committee re-
solved that, at the discretion of the GoU, represen-
ted by KfW, the contractual deadline for achieving
commercial operation would be extended from
31 December 2018 to 31 October 2019. Based on
updated assessments during the rst half of 2019,
however, it was clear that not all remaining projects
would be able to comply with even the extended
deadline. The Steering Committee subsequently
concluded not to terminate the Developer Financing
Agreements (DFA) with the projects not able to meet
the extended deadline provided an addendum to
the DFA was agreed with the remaining Developers,
stipulating that for each full month of delay beyond
31 October 2019 a penalty of 5 % to the COD sub-
sidy payment would be imposed. The Nyamagasani
SHPs and the Kikagati SHP will be subject to these
further reductions in the nal subsidy amount.
21
Annual Report 2019
Portfolio Operating Performance in 2019
The timely implementation of new power evacuation
infrastructure and upgrades to the existing grid con-
tinued to be a major issue for many of the projects.
Of the 14 projects operating by the end of 2019, four
SHPs had only partially completed their respective
commissioning activities as a result of grid-related
issues and had only achieved Deemed COD. In each
case, improvements to the existing grid and/or the
completion of new lines were required to enable
completion of the full suite of commissioning tests
and to enable power generation at full capacity,
which were expected to be in place in 2020.
The availability of the plants to generate electricity
during 2019 was generally in line with the expected
range for a portfolio of new generation projects. Only
three SHPs reported an availability of approxima-
tely 95 % - lower than would normally be expected
- which was predominantly a result of isolated opera-
ting incidents or plant shutdowns, for example where
remedial works were required to close out outstan-
ding works or defects from the construction phase.
Otherwise, the availability and quality of the grid
continued to aect the overall generation output,
with resulting deemed energy obligations for GoU.
Overall, 23 % of the planned generation from the
portfolio failed to deliver due to grid related cons-
traints. Except for the unusually high outages expe-
rienced by the Waki SHP and the lack of a dedicated
power evacuation line at the Siti 2 SHP, the average
deemed energy resulting from grid outages equated
to approximately 11 % expected annual generation,
painting a slightly less severe picture. The Siti 2 SHP,
which achieved commercial operation during the
second half of 2019, is still awaiting the completion
of the interim connection solution, expected now
during the rst half of 2020, followed by the imple-
mentation of the permanent solution in 2021. As the
ongoing enhancements to the grid continue in 2020,
the overall grid outages and deemed energy obliga-
tions are expected to reduce substantially.
Expected Portfolio Output
An overview of the total planned installed capacity
of the portfolio and how it is distributed across the
supported technologies is presented in Figure 1.
The overall portfolio capacity amounts to a total of
158.4 MW, representing approximately 93 percent
of the original Programme target of 170 MW. The
dierence between the planned capacity of the cur-
rent portfolio and the original target is partly due to
a reduction in the overall Programme funding in ear-
lier years combined with a lower share of bagasse/
biomass than originally anticipated. Nevertheless,
adding an installed capacity of over 150 MW to the
Ugandan electricity supply network is a signicant
achievement and truly reects the successful impact
of the GET FiT Programme.
Figure 1 | GET FiT Portfolio Build Up
20 %
10 %
0 %
GWh/yearMW
Hydro Hydro
Bagasse
Bagasse
Solar PV
Solar PV
30 %
40 %
50 %
100 %
90 %
70 %
80 %
60 %
22
GET FiT Uganda
Figure 2 provides a schematic illustration of the
merit order eect of the GET FiT portfolio at the end
of 2019 (considering the current installed capacity
of 122.4 MW). The merit order eect refers to the
reduction of highly priced peak energy that the utility
needs to buy: As indicated in the graph, the GET FiT
portfolio (green area) is o-setting expensive ther-
mal generation (grey area) that is associated with
high GHG emissions. Due to GET FiT approximately
14 % of total generation capacity has been added,
thereby reducing generation from the heavy fuel oil
plants in the country. Notably, the HPP Isimba com-
missioned this year, increased the installed capaci-
ty in the country by about 180 MW. In addition, the
commissioning of the 600 MW Karuma hydropower
project is expected in late 2020. This will increase the
installed generation capacity by approximately 60 %.
Based on ERA reporting, it is expected that consu-
mers will face a signicant excess generation in the
short to medium term, and therefore incur deemed
energy costs as a result of low demand.
Annual Report 2019
23
Figure 2 | Schematic Representation of Uganda's Merit Order with and without the GET FiT Portfolio
Note: The merit order eect is expressed in marginal energy price, not average energy price. Both thermal power plants have 7 MW generation guaranteed
in their PPA. Additionally, most powerplants have take-or-pay PPAs. Therefore, the illustration is only a schematic representation of the eects.
5
0
25
20
15
10
5
0
25
20
15
10
0 300 400 500 600 700 800 900 1000200100
0 300 400 500 600 700 800 900 1000200100
Price in UScPrice in USc
Capacity in MW
Marginal Power Price
Marginal Power Price
Marginal Power Price excl. GET FiT Portfolio
Demand Curve
Merit Order Effect
GET FiT Contribution
+14 %
Demand Curve
Kiira &
Nalubaale
Isimba Bujagali Fossil Fuel
Kiira &
Nalubaale
Isimba Bujagali Fossil FuelGET FiT
Capacity in MW
Schematic Representation of Merit Order in 2019
Large Hydro
Small Hydro
Bagasse
GET FiT
Thermal
24
GET FiT Uganda
25
In the following sections, projects comprising the GET FiT portfolio are described in more detail, highlighting
notable developments and power generation
4
in 2019. Figure 3 provides an overview of the location of the
respective projects of the portfolio.
2.2 Projects
Figure 3 | Map of GET FiT Portfolio
Annual Report 2019
Hydropower
Bagasse
Solar PV
4
Generation data is presented as provided by developers. The accuracy and appropriateness of the generation levels presented in the following sections
will be reviewed by GET FiT only upon submission as per contractually agreed procedures.
Kakira
Siti I SHP
Siti II SHP
Waki SHP
Nkusi SHP
Sindila SHP
Ndugutu SHP
Rwimi SHP
Nyamwamba SHP
Nyamagasani
I + II SHP
Kyambura SHP
Kikagati SHP
Muvumbe SHP
Lubilia SHP
Tororo
Soroti
GET FiT Uganda
26
Capacity
(in MW)
Planned
Generation
(in GWh/year)
Total
Investment
(in million USD)
GET FiT
Commitment
(in million USD)
Annual Generation
(in GWh)
Bagasse
Uganda
2016
35
44
87
76
147
2017 2018 2019 2020e
20.0
147.0
56.8
7.1
T
he Kakira biomass (bagasse from sugar production) plant
is located in the Jinja District, Eastern Uganda, and was
the rst operational project supported by GET FiT. Since
commissioning in 2015 the Project has been facing a low availa-
bility of sugar cane caused by increased local competition. The
sugar cane supply improved during the past year, basically due
to good weather and increased number of farmers. Kakira has
also developed its own satellite cane elds to reduce depen-
dency on the outgrower farmers to ensure constant raw ma-
terials supply for smooth operations. Accordingly, the output
has seen a considerable increase: In 2017 the generation was
at 44 GWh, while the plant generation nearly doubled to appro-
ximately 87 GWh in 2018 and now 76 GWh in 2019. The project
expects to gradually increase generation in the following years
to approximately 105 GWh in 2020 and 130 GWh in 2021.
Kakira Sugar Limited has established a fund, contributing a fee
per tonne of sugarcane delivered. It is now 11 years old and
remains sustainable having spent over UGX 6.0 billion during
the period. Its primary objective is to develop the social and
physical infrastructure in the 35 km radius of the factory in the
farmer communities. As such, the fund has a direct positive im-
pact on the quality of life of all communities in the catchment
area. Key activities include, among others, health units, science
laboratories, safe drinking water and farmer loans.
Kakira
Operational
Figure 4 | Kakira Bagasse - Planned versus Actual Energy Output (2019)
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
Jan
Energy (GWh)
Feb Mar Apr May JunJul AugSep Oct NovDec
Planned Energy (GWh) Actual Energy (GWh)
Uganda
Kyambura SHP
Operational
27
Annual Report 2019
T
his run-of-river hydropower plant is located in the Rubirizi
District in Western Uganda. The Developer initially mobi-
lised to site in February 2017 but only commenced with
key construction activities from September 2017.
Despite repeated occurrences of irresponsible construction
practices during 2018, the Developer’s performance improved
substantially during 2019. Construction practices improved,
restoration of damaged areas continued, and the general ap-
proach to resolving design and construction issues, as well as
construction progress, was generally commendable. The Pro-
ject successfully completed commissioning tests and synchro-
nised to the grid in July 2019.
During the rst ve full months of operation (from August on-
wards), the Project delivered 15.5 GWh of electricity to the grid.
Grid failures and external outages during the same period were
approximately equivalent to 10 % of the potential plant output
(energy delivered plus deemed energy). The plant availabili-
ty during the corresponding period was approximately 99 %,
which is in line with the upper end of the expected range for a
new SHP.
Adjusting for the partial availability of the power evacuation line,
the cumulative energy output of the plant during the rst ve
full months of operation would have been 17.2 GWh, approxi-
mately equivalent to 96 % of the average energy for the same
period of operation estimated at application stage.
Figure 5 | Kyambura SHP - Planned versus Actual Energy Output (2019)
0.00
1.00
2.00
3.00
4.00
5.00
6.00
Jan
Energy (GWh)
Feb Mar Apr May JunJul AugSep Oct NovDec
Planned Energy (GWh) Actual Energy (GWh) Deemed Energy (GWh)
Capacity
(in MW)
Planned
Generation
(in GWh/year)
Total
Investment
(in million USD)
GET FiT
Commitment
(in million USD)
Annual Generation
(in GWh)
Hydropower
2019
16
37 37 37 37
2020e 2021e 2022e 2023e
7.6
36.7
24.0
5.4
Uganda
Capacity
(in MW)
Planned
Generation
(in GWh/year)
Total
Investment
(in million USD)
GET FiT
Commitment
(in million USD)
Annual Generation
(in GWh)
Hydropower
2018
14
16
22 22 22
2019 2020e 2021e 2022e
5.4
22.0
16.0
3.2
T
his run-of-river hydropower plant is located in Kasese Dis-
trict in Western Uganda and has been operational since
early April 2018. In 2019 the Project delivered a total of
15.8 GWh of electricity to the grid.
5
Grid failures and external outages during 2019 were approxi-
mately equivalent to 14 % of the potential plant output (energy
delivered plus deemed energy), which is similar to the same
level of outages experienced in the rst nine full months of ope-
ration in 2018. The new transmission line under construction is
expected to substantially reduce grid outages and improve grid
reliability in 2020 following completion. Adjusting for the partial
availability of the power evacuation line, the cumulative energy
output of the plant during 2019 would have been 18.4 GWh,
approximately equivalent to 84 % of the average annual energy
estimated at application stage.
A post-COD site visit was undertaken to the site during Novem-
ber 2019. Documentation submitted by the Developer indica-
ted that planned maintenance activities had generally been
undertaken. Similar to the Siti 1 SHP, there appeared to be
a serious non-compliance issue with operating phase permit
conditions, relating to insucient minimum ow release. The
Developer’s proposal for a revised release arrangement was ac-
cepted in principle, with installation of the alternative arrange-
ment understood to be planned during early 2020.
Lubilia SHP
Operational
Figure 6 | Lubilia SHP - Planned versus Actual Energy Output (2019)
28
GET FiT Uganda
5
The planned average annual generation of the Lubilia SHP has been adjusted from the
25 GWh reported in previous GET FiT Uganda reporting in order to reect the expected
plant output more accurately.
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
Planned Energy (GWh) Actual Energy (GWh) Deemed Energy (GWh)
Annual Report 2019
29
Muvumbe SHP
Operational
T
his run-of-river hydropower project is located in Kabale
District in South-Western Uganda and has been operatio-
nal since mid-May 2017.
During 2019, the Project delivered 28.9 GWh of electricity to the
grid. Combined with the output generated since achieving COD
in 2018, the Project has so far delivered a total of 69.6 GWh to
the Ugandan grid.
Grid failures and external outages were approximately equi-
valent to 9 % of the potential plant output (energy delivered
plus deemed energy). Adjusting for the partial availability of
the power evacuation line, the cumulative energy output of the
plant would instead have been 31.6 GWh, approximately equi-
valent to 101 % of the average energy estimated at application
stage.
Following a post-COD site visit undertaken to the site during
2018 and subsequent follow-up communications with the De-
veloper, the Developer proposed modications to the intake
structures during 2019 to ensure compliance with operating
phase permit conditions, in particular the continuous release of
the minimum ow requirement. The Developer’s proposal for
a revised release arrangement was accepted in principle, with
installation of the alternative arrangement understood to be
planned during early 2020 after detailed plans having been pre-
sented to GET FiT for acceptance. Some further environmental
and social compliances issues also required corrective actions.
Figure 7 | Muvumbe SHP – Planned versus Actual Energy Output (2019)
0.00
1.00
2.00
3.00
4.00
5.00
6.00
Planned Energy (GWh) Actual Energy (GWh) Deemed Energy (GWh)
Capacity
(in MW)
Planned
Generation
(in GWh/year)
Total
Investment
(in million USD)
GET FiT
Commitment
(in million USD)
Annual Generation
(in GWh)
Hydropower
2017
16
28
29
31 31
2018 2019 2020e 2021e
6.5
31.0
12.5
4.5
Uganda
Uganda
Capacity
(in MW)
Planned
Generation
(in GWh/year)
Total
Investment
(in million USD)
GET FiT
Commitment
(in million USD)
Annual Generation
(in GWh)
Hydropower
2019
5
27 27 27 27
2020e 2021e 2022e 2023e
5.9
26.5
17.1
3.2
T
his run-of-river hydropower plant is located in the Bundi-
bugyo District in Western Uganda and was developed in
parallel with the Sindila SHP, located on an adjacent river
basin (also approved for GET FiT support). The Project com-
menced construction in June 2017 and achieved Deemed COD
on 1 October 2019.
During the rst three full months of operation (from October
onwards), the Project delivered 4.8 GWh of electricity to the
grid. Grid availability reported during the same period averaged
approximately 87 %.
Reinforcements to the existing grid and construction of a new
power evacuation line to the Fort Portal substation were on-
going during 2019. These eorts are expected to substantially
reduce outages and allow both Ndugutu and the neighbouring
Sindila SHP to complete outstanding commissioning tests and
to evacuate at full capacity to the grid. In the interim, improve-
ments were implemented during Q3 to improve the capacity of
the existing grid to circa 8 MW, enabling both the Sindila and
Ndugutu SHPs to generate and supply electricity.
Since the Ndugutu SHP achieved COD, it is understood that the
combined output of the Sindila and Ndugutu SHPs had been
restricted to approximately 7.5 MW, to minimise tripping of the
power plant, which was shared between the projects depen-
ding on the availability of ows.
Ndugutu SHP
Operational
Figure 8 | Ndugutu SHP - Planned versus Actual Energy Output (2019)
GET FiT Uganda
30
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
Planned Energy (GWh) Actual Energy (GWh) Deemed Energy (GWh)
Uganda
Annual Report 2019
31
Nkusi SHP
Operational
T
his run-of-river hydropower plant is located in the Kibaa-
le and Hoima Districts in Western Uganda and has been
operational since mid-June 2018.
During 2019, the Project delivered 43.8 GWh of electricity to the
grid. Combined with the output generated since achieving COD
in 2018, the Project has so far delivered a total of 73.1 GWh to
the Ugandan grid.
Grid failures and external outages during 2019 were approxi-
mately equivalent to 24 % of the potential plant output (energy
delivered plus deemed energy), a marginal improvement on the
28 % of outages reported in 2018. The availability of the plant
to generate during 2019 was generally within acceptable limits
at an average of 96 %.
Adjusting for the partial availability of the power evacuation line,
the cumulative energy output of the plant during 2019 would in-
stead have been 57.4 GWh, approximately equivalent to 125 %
of the average annual energy estimated at application stage.
The construction of an alternative power evacuation route to-
wards Hoima was completed in July 2019. This enhanced the
network’s robustness and reduced the outages and the dee-
med energy risk to GoU.
A post-COD visit has not yet been undertaken. Meanwhile, fol-
low-up of outstanding issues at the time of COD is undertaken
on a desk review basis.
Figure 9 | Nkusi SHP - Planned versus Actual Energy Output (2019)
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
Planned Energy (GWh) Actual Energy (GWh) Deemed Energy (GWh)
Capacity
(in MW)
Planned
Generation
(in GWh/year)
Total
Investment
(in million USD)
GET FiT
Commitment
(in million USD)
Annual Generation
(in GWh)
Hydropower
9.6
46.0
19.6
2.8
2018
29
44
46 46 46
2019 2020e 2021e 2022e
Uganda
T
his run-of-river hydropower plant is located in Kasese Dis-
trict in Western Uganda and has been operational since
the end of April 2018.
During 2019, the Project delivered 29.6 GWh of electricity to the
grid. Combined with the output generated since achieving COD
in 2018, the Project has so far delivered a total of 60.0 GWh to
the Ugandan grid.
Grid failures and external outages were approximately equiva-
lent to 13.7 % of the potential plant output (energy delivered
plus deemed energy). Adjusting for partial availability of the
power evacuation line, the cumulative energy output of the
plant during 2019 would instead have been 34.3 GWh, appro-
ximately equivalent to 88 % of the average energy estimated at
application stage.
Notably, the ownership of the project changed in 2019 from
SAEMS LLC to responsAbility Renewable Energy Holding (rAREH).
Africa EMS Nyamwamba Ltd. will continue to operate the plant.
A post-COD visit has not yet been undertaken. Meanwhile, fol-
low-up of outstanding issues at the time of COD is undertaken
on a desk review basis.
Nyamwamba SHP
Operational
GET FiT Uganda
32
Figure 10 | Nyamwamba SHP - Planned versus Actual Energy Output (2019)
0.00
1.00
2.00
3.00
4.00
5.00
6.00
Planned Energy (GWh) Actual Energy (GWh) Deemed Energy (GWh)
Capacity
(in MW)
Planned
Generation
(in GWh/year)
Total
Investment
(in million USD)
GET FiT
Commitment
(in million USD)
Annual Generation
(in GWh)
Hydropower
9.2
39.0
28.7
5.8
2018
30 30
39 39 39
2019 2020e 2021e 2022e
Uganda
Annual Report 2019
33
Rwimi SHP
Operational
T
his run-of-river hydropower project is located in Kasese
and Bunyangabo Districts in Western Uganda and has
been operational since October 2017. During 2019, the
Project delivered 25.1 GWh of electricity to the grid.
Works to remedy residual defects from the construction stage
were undertaken during 2019. Excluding scheduled mainte-
nance works the plant availability would have been more than
99 % which is in line with the upper end of the expected range
for a new SHP.
Grid failures and external outages during 2019 were approxi-
mately equivalent to 2 % of the potential plant output. Adjus-
ting for the partial availability of the power evacuation line and
downtime due to the rectication of construction defects, the
energy output of the plant would instead have been 26.0 GWh,
approximately equivalent to 97 % of the average annual energy
estimated at application stage, well within the expected devia-
tion of an average hydrological year.
A post-COD site visit was undertaken to the site during Novem-
ber 2019. Operational issues reported during the period were
understood to have been rectied. The Project was requested
to address outstanding environmental and social compliance
issues related to operations.
Figure 11 | Rwimi SHP - Planned versus Actual Energy Output (2019)
6
At the time of project approval, the Project was located in Kasese and Kabarole Districts.
Since 1 July 2017, the area on the left bank is in Bunyangabo District following the split of
Kabarole District into multiple districts.
0.00
0.50
1.00
1.50
2.50
2.00
3.50
3.00
4.00
Planned Energy (GWh) Actual Energy (GWh) Deemed Energy (GWh)
Capacity
(in MW)
Planned
Generation
(in GWh/year)
Total
Investment
(in million USD)
GET FiT
Commitment
(in million USD)
Annual Generation
(in GWh)
Hydropower
2017
7
29
25
27 27
2018 2019 2020e 2021e
5.5
27.0
19.9
3.9
Uganda
Capacity
(in MW)
Planned
Generation
(in GWh/year)
Total
Investment
(in million USD)
GET FiT
Commitment
(in million USD)
Annual Generation
(in GWh)
Hydropower
2019
9
27 27 27 27
2020e 2021e 2022e 2023e
5.3
27.0
19.4
3.9
T
his run-of-river hydropower plant is located in Bundibugyo
District in Western Uganda and was developed in parallel
with the Ndugutu SHP, located on an adjacent river basin
(also approved for GET FiT support). The Project commenced
construction in February 2017 and synchronised to the grid du-
ring April 2019. The plant was unable to complete the full suite
of commissioning tests, however, due to constraints with the
existing grid, and achieved Deemed COD on 1 May 2019. GET
FiT formally acknowledged the achievement of COD in Septem-
ber 2019 following the completion of key Project structures and
demonstrating compliance with permit requirements.
During the rst eight full months of operation (from May on-
wards), the Project delivered 9.1 GWh of electricity to the grid.
Grid failures and external outages during the same period were
approximately equivalent to 17 % of the potential plant output,
which reects issues encountered with the capacity and reliabi-
lity of the existing grid. Reinforcements to the existing grid and
construction of a new power evacuation line between the Sindi-
la and Ndugutu SHPs and Fort Portal are expected to substanti-
ally reduce grid outages moving forward. As indicated earlier in
this report, reinforcements to the existing grid and construction
of a new power evacuation line between the Sindila and Ndu-
gutu SHPs and Fort Portal are expected to substantially reduce
grid outages moving forward. Adjusting for the partial availabi-
lity of the power evacuation line, the energy output of the plant
during the rst eight full months of operation is equivalent to
approximately 57 % of the average energy for the same period
of operation estimated at application stage.
Sindila SHP
Operational
Figure 12 | Sindila SHP - Planned versus Actual Energy Output (2019)
GET FiT Uganda
34
0.00
0.50
1.00
1.50
2.50
2.00
3.50
3.00
4.00
Planned Energy (GWh) Actual Energy (GWh) Deemed Energy (GWh)
Uganda
35
Annual Report 2019
Siti 1 SHP
Operational
T
his run-of-river hydropower plant is located in Bukwo Dis-
trict in Eastern Uganda and has been operational since
May 2017. During 2019, the Project delivered 20.1 GWh
of energy to the grid.
Substantial grid failures and outages continued throughout
2019 with grid availability reportedly as low as 59 % on average.
Lost generation due to grid failures and outages, accounting
for water availability, equated to approximately 23 % of the
potential plant output, which is especially high and similar in
magnitude to the 26 % reported in 2018. The long-term power
evacuation solution for the Siti 1 SHP and downstream Siti 2
SHP comprises a new 132 kV transmission line between Mbale
and Bulambuli, which is expected to substantially improve the
availability and reliability of power evacuation from the plant.
The line is not expected to be completed before 2021.
Adjusting for the partial availability of the power evacuation line,
the energy output of the plant during 2019 would have been
equivalent to 104 % of the average energy estimated at appli-
cation stage.
A post-COD site visit was undertaken to the site during Sep-
tember 2019. A serious non-compliance with operating phase
permit conditions was identied, relating to a persistent, insuf-
cient minimum ow. The Developer’s proposal for a revised
release arrangement was accepted in principle and installation
was reportedly completed in early 2020.
Figure 13 | Siti 1 SHP - Planned versus Actual Energy Output (2019)
0.00
0.50
1.00
1.50
2.50
2.00
3.50
3.00
4.00
Planned Energy (GWh) Actual Energy (GWh) Deemed Energy (GWh)
Capacity
(in MW)
Planned
Generation
(in GWh/year)
Total
Investment
(in million USD)
GET FiT
Commitment
(in million USD)
Annual Generation
(in GWh)
Hydropower
2017
11
20 20
25 25
2018 2019 2020e 2021e
6.1
25.0
15.0
3.6
Uganda
Capacity
(in MW)
Planned
Generation
(in GWh/year)
Total
Investment
(in million USD)
GET FiT
Commitment
(in million USD)
Annual Generation
(in GWh)
Hydropower
2019
2
72 72 72 72
2020e 2021e 2022e 2023e
16.5
72.0
33.0
10.2
T
his run-of-river hydropower plant is located in Bukwo
District in Eastern Uganda. The Project commenced cons-
truction in August 2016 and completed partial commis-
sioning tests and synchronised to the grid in July 2019.
The Project is currently connected to the grid via the adjacent
Siti 1 SHP power evacuation line, which has very limited capa-
city. As a result, Siti 2 has only delivered 1.7 GWh to the grid
in the rst ve full months of operation, with deemed energy
claims accounting for 95 % of the potential plant output during
the same period.
The long-term power evacuation solution is a new 132 kV trans-
mission line planned between Mbale and Bulambuli, not expec-
ted to be complete before 2021. In the interim, a 125 km long
33 kV line is being constructed following the existing Siti 1 SHP
line, though implementation of this line is also delayed.
Despite synchronising to the grid, the Project had not comple-
ted essential commissioning tests within the constraints of the
grid by the end of 2019 and there were further substantial en-
vironmental non-compliances outstanding.
Siti 2 SHP
Operational
Figure 14 | Siti 2 SHP - Planned versus Actual Energy Output (2019)
GET FiT Uganda
36
0.00
2.00
4.00
6.00
10.00
8.00
12.00
Planned Energy (GWh) Actual Energy (GWh) Deemed Energy (GWh)
Uganda
Annual Report 2019
37
Soroti Solar PV
Operational
T
his Project is located east of the town of Soroti in the So-
roti District, Eastern Uganda, and was commissioned in
November 2016. The Soroti Solar Power Plant has 32,680
solar modules on 13 hectares, was developed by Access Ugan-
da Solar Ltd., and has been injecting power to the national grid
for more than three years. At the beginning of its commercial
operation the 10 MW plant was the rst grid-connected Solar
PV Power Plant in Uganda and also East Africa’s largest.
In 2019, the plant produced approximately 16.0 GWh. The dee-
med energy due to failures from the grid was 1.24 GWh, mea-
ning that the plant could have produced and delivered circa
17.2 GWh to the grid, given no grid failure. The local Operation
and Maintenance team did not report any major events in this
second year since achieving commercial operation, and was
mostly following normal operating procedures, both preventive
and corrective.
Figure 15 | Soroti Solar PV - Planned versus Actual Energy Output (2019)
0.00
0.20
0.40
0.60
2.00
1.80
1.60
1.40
1.20
1.00
0.80
Planned Energy (GWh) Actual Energy (GWh) Deemed Energy (GWh)
Capacity
(in MW)
Planned
Generation
(in GWh/year)
Total
Investment
(in million USD)
GET FiT
Commitment
(in million USD)
Annual Generation
(in GWh)
Solar PV
10.0
17.5
14.3
9.6
2016
5
16 16 16
17
2017 2018 2019 2020e
Uganda
Tororo Solar PV
Operational
T
he Tororo Solar PV project is located just outside Tororo
Town in the Tororo District, Eastern Uganda. The 10 MW
power plant was constructed with 32,240 solar modules
on 14 hectares. The Project commenced commercial opera-
tions in September 2017, and so became the second grid-con-
nected power plant in Uganda.
The facility operated to expected and forecasted performance
levels and there have been no major issues or concerns during
the rst two operational years. The Project has not reported
any deemed energy in 2019. Total generation during the year
equalled approximately 16.0 GWh, in line with the planned an-
nual generation.
The owners, Tororo Solar North Ltd., part of the Building Energy
Group, has built an Early Childhood Development Centre which
has been available for use by the local community since De-
cember 2018.
GET FiT Uganda
38
Figure 16 | Tororo Solar PV – Planned versus Actual Energy Output (2019)
0.00
0.20
0.40
0.60
2.00
1.80
1.60
1.40
1.20
1.00
0.80
Planned Energy (GWh) Actual Energy (GWh)
Capacity
(in MW)
Planned
Generation
(in GWh/year)
Total
Investment
(in million USD)
GET FiT
Commitment
(in million USD)
Annual Generation
(in GWh)
Solar PV
10.0
16.0
19.6
8.0
2017
6
16 16 16 16
2018 2019 2020e 2021e
Uganda
Annual Report 2019
39
Waki SHP
Operational
T
his run-of-river hydropower plant is located in Hoima and
Buliisa Districts in Western Uganda and has been opera-
tional since December 2018.
During 2019, the Project delivered 13.0 GWh of electricity to the
grid. Grid availability during 2019 was very poor, averaging ap-
proximately 76 %. The approximate resulting deemed energy
was equivalent to 48.3 % of the potential plant output (energy
delivered plus deemed energy). Please refer to Chapter 4 for
further details on grid-related challenges experienced at the
Project. Adjusting for partial availability of the power evacua-
tion line, the cumulative energy output of the plant during 2019
would instead have been 25.1 GWh, approximately equivalent
to 102.3 % of the average energy estimated at application stage.
Despite achieving Deemed COD in 2018, the Developer was not
able to demonstrate the safe and reliable performance of the
forebay spillway to the satisfaction of GET FiT. Consequently,
following several unsatisfactory modications to the arrange-
ment between November 2018 and July 2019, the forebay was
converted into a surge tank, thereby eliminating the need for
the spillway. The modications were completed by the end of
September 2019 and GET FiT formally acknowledged the achie-
vement of Deemed COD in October 2019.
A post-COD visit has not yet been undertaken. Meanwhile, fol-
low-up of outstanding issues at the time of COD is undertaken
on a desk review basis. This has included corrective measures
regarding the release and monitoring of the minimum ow.
Figure 17 | Waki SHP - Planned versus Actual Energy Output (2019)
0.00
0.50
1.00
4.00
3.50
3.00
2.50
2.00
1.50
Planned Energy (GWh) Actual Energy (GWh) Deemed Energy (GWh)
Capacity
(in MW)
Planned
Generation
(in GWh/year)
Total
Investment
(in million USD)
GET FiT
Commitment
(in million USD)
Annual Generation
(in GWh)
Hydropower
2018
1
13
25 25 25
2019 2020e 2021e 2022e
4.8
25.0
17.3
3.6
Uganda
T
his run-of-river hydropower plant is located in Isingiro Dis-
trict in Southern Uganda on the Kagera River representing
the border with Tanzania. Following the replacement of
the EPC Civil Contractor in the latter half of 2018, the Contrac-
tor completed mobilisation activities, including establishment
of the site facilities such as the compound and accommodation
blocks where construction had continued under management
by the Developer during the EPC replacement process. The EPC
Civil Contractor was nally awarded a Full Notice to Proceed in
August 2019, despite construction activities having progressed
in the meantime.
Blasting and excavation of the powerhouse foundations, which
comprised substantial volumes of material as a result of the
powerhouse previously being shifted slightly further inland, was
completed during 2019 and construction of the reinforced con-
crete foundations and walls had commenced. Several months
of delay were encountered in constructing the powerhouse,
however, as a result of resolving design issues between the
EPC Contractor and Owner’s Engineer. Night-working shifts had
been introduced in an attempt to recover programme delays.
Construction works on the Tanzanian side had not yet com-
menced.
Further design modications and optimisations to the dam and
sh pass arrangements were considered throughout 2019,
with details of the revised proposals being submitted and di-
scussed as late as the site visit in November 2019. Key design
issues were still to be resolved by the end of the year, although
progress against key issues had been achieved.
The Developer planned for the three units to be commissioned
progressively, with an estimated contract COD in September
2020 and construction completion in March 2021. Based on
observed progress, outstanding design issues, the scope of re-
maining construction works, and substantial construction risks
such as being able to successfully divert the Kagera River, there
is potential for COD to be delayed until early 2021 and for con-
tract completion to be delayed until Q2-Q3 2021. Harmonisa-
tion and continued coordination with respect to requirements
in the two countries is likely to be essential to avoid further un-
expected delays, in particular as construction works expand to
the Tanzanian side in 2020.
Kikagati SHP
Under Construction
GET FiT Uganda
40
Capacity
(in MW)
Planned
Generation
(in GWh/year)
Total
Investment
(in million USD)
GET FiT
Commitment
(in million USD)
Hydropower
16.0
115.0
88.0
12.3
Uganda
Capacity
(in MW)
Planned
Generation
(in GWh/year)
Total
Investment
(in million USD)
GET FiT
Commitment
(in million USD)
Hydropower
15.0
64.0
36.1
9.3
Nyamagasani 1 SHP
Under Construction
T
his run-of-river hydropower plant is located in the Kasese
District in Western Uganda. The Developer mobilised to
site in February 2017 and only issued the EPC Contractor
with a full Notice to Proceed at the end of 2017. At the end
of the following year, 2018, the Project still faced substantial
challenges in a few key locations across the site and a number
of key design decisions remained unresolved, despite having
initially achieved design freeze in Q1 2018.
The rst few hundred metres of headrace waterway in steep
terrain, downstream of the weir and intake, remained the most
challenging section of the Project in 2019. A landslide in this
location at the start of the year exacerbated the slow progress,
and ultimately resulted in a major design change. Notable pro-
gress in resolving Project designs was nally achieved by the
middle of 2019. Nonetheless, last year was characterised by
generally poor construction progress, which was understood
to be predominantly a result of the Contractor being overstret-
ched. By the end of 2019, the Developer had agreed with the
Contractor to implement measures that were expected to im-
prove progress.
By the end of 2019, access to the weir was still limited and
construction progress at the weir and rst few hundred metres
of waterway were limited. Based on the substantial volume of
construction works remaining and the potentially substantial
risks and uncertainties to completion, the Developer’s planned
commercial operation date at the end of April 2020 appeared
highly unlikely. A COD of Q4 2020 appears more realistic.
Construction of the new 33 kV power evacuation line, being im-
plemented by the Rural Electrication Agency, also remained a
critical risk to the Project with substantial delays experienced
during 2019. Completion of the line was not anticipated until
Q3 of 2020.
Annual Report 2019
41
Uganda
Capacity
(in MW)
Planned
Generation
(in GWh/year)
Total
Investment
(in million USD)
GET FiT
Commitment
(in million USD)
Hydropower
5.0
25.5
19.4
3.7
Nyamagasani 2 SHP
Under Construction
T
his run-of-river hydropower plant is located in the Kasese
District in Western Uganda and was developed as part of
a cascade, just downstream of the Nyamagasani 1 SHP
(also approved for GET FiT support). The Developer and EPC
Contractor are common to both the Nyamagasani 1 and 2 SHPs
and, similar to the Nyamagasani 1 SHP, observed construction
progress during 2019 was generally poor, the resolution of de-
sign issues continued into 2019, and there were substantial de-
lays to the planned COD.
By the end of 2019, key design decisions had been resolved,
including the sh passage arrangement at the weir and the
planned COD had been revised to early March 2020. Despite
the site being less challenging from an access and construction
perspective, compared with the upstream Nyamagasani 1 SHP,
as well as being more advanced, there were still considerable
remaining construction works and risks to completion. A COD
of Q2-Q3 2020 appears more realistic.
As for the Nyamagasani 1 SHP, the timely implementation of
the new 33 kV power evacuation line, which is common to both
projects and expected to be completed only in Q3 2020, repre-
sents a major ongoing risk to the Project.
GET FiT Uganda
42
Annual Report 2019
43
GET FiT Uganda
44
Annual Report 2019
45
S
ound management of environmental and so-
cial (E&S) risks protects the environment and
safeguards project-aected people and wor-
kers. GET FiT supervision visits to projects show that
risk management aects a project developer’s soci-
al licence to construct and operate, that is, aects
the project’s social acceptance within the project
communities and among other stakeholders. Such
acceptance guards against a variety of social risks
during construction and operation and saves costs
in the long run, for instance costs for security, main-
tenance, repairs and losses due to theft.
Projects supported by GET FiT are required to com-
ply with Ugandan regulations and international
standards, particularly the environmental and social
performance standards (PS) of the International Fi-
nance Corporation (IFC). The IFC PS act as a global
benchmark and are widely applied by international -
nancing institutions and private investors, also making
these a convenient common reference point in mul-
ti-donor funded initiatives like GET FiT. In 2019, GET
FiT observed that several international lenders and
owners did not ensure compliance with national and
international E&S standards. This has increased the
supervision eorts and follow-up by GET FiT. It is im-
portant to note that the Ugandan regulations and the
IFC PS have many similarities with further similarities
added with the approval of Uganda’s 2019 National
Environment Act that replaced the National Environ-
ment Act, 1995. One important dierence remains
concerning compensation for loss of assets during
displacement. The international standards require full
replacement cost (market value + transaction costs)
rather than Uganda’s requirement of using the lower
depreciated value. Multiple projects have been requi-
red to increase compensation from the rates appro-
ved nationally to ensure fair compensation.
03 Environmental and Social
Performance
3.1 Environmental and Social Benchmark
GET FiT Uganda
46
A
s highlighted in previous GET FiT Annual Re-
ports, the capacity of developers to mana-
ge environmental and social risks, including
health and safety, has been considerably lower than
expected. Weak capacity was reected in the low
E&S scores during appraisals of applications for GET
FiT support, also resulting in numerous conditions
precedent (CPs) dened by the Investment Commit-
tee. Few project developers had pre-GET FiT expe-
rience from implementing projects in line with the
IFC Performance Standards.
The GET FiT Investment Committee dened more
than 50 environmental and social CPs across the
three Request for Proposals (RfPs) in 2013, 2014 and
2015. The CPs were concerned with revision of en-
vironmental and social impact assessments (ESIAs),
resettlement action plan (RAPs), environmental and
social management or action plans (ESMPs or ESAPs)
and livelihood restoration plans (LRPs). Cumulatively
across the portfolio to date, approximately 83 % of
the environmental and social CPs have been cleared.
As in previous years, GET FiT spent considerable re-
sources reviewing and advising developers on E&S
issues in 2019. While the number of projects under
construction reduced, E&S compliance issues asso-
ciated with operations were uncovered particularly
regarding inadequate releases of minimum ows.
Labour and working conditions including health and
safety on construction sites, managing additional
land acquisition during construction and ensuring
fair compensation, appropriate hazardous waste
management, minimising damage during excavati-
ons and management of indirect adverse impacts
on important biodiversity areas like national parks
continued to be important issues in 2019. Progress
was recorded on multiple issues as project develo-
pers gained experience.
A total of 23 project visits to ten (10) projects were
undertaken in 2019 including 16 project supervision
visits, four (4) COD visits, and three (3) post-COD
visits. All visits were to small hydropower projects.
Action points were identied in each visit, and the
visits continued to prove useful and a necessary part
of managing environmental and social risks. The su-
pervision visits comprise a one-day visit per project
with subsequent provision of a supervision visit re-
port for each visit. KfW participated in all site visits in
2019 and the Electricity Regulatory Authority (ERA)
participated in approximately half of the visits in ad-
dition to separate visits undertaken by ERA as the
regulator for all projects. The joint visits continued
to prove very useful. For some of the projects, GET
FiT also shared observations from visits with lenders.
3.2 GET FiT Follow-Up and Support
Annual Report 2019
47
M
ost projects under construction in 2019 saw
improvements in environmental and social
performance and several project develo-
pers continued to gain experience and improve ca-
pabilities in managing environmental and social risks.
Additional GET FiT follow-up and advice, notications
of potential subsidy reductions and GET FiT not provi-
ding COD payments until improvements in complian-
ce were undertaken, all contributed to more decisive
actions by project developers to close key gaps in en-
vironmental and social compliance. As a result of the
GET FiT Programme, there is now a considerably hig-
her degree of compliance with Ugandan regulations
and international standards than would otherwise
have been observed, greater capacity among develo-
pers, and this has resulted in substantially improved
safeguarding of people and nature in project areas.
Damage to the surrounding natural vegetation and
rivers as well as to local people’s properties due to
poor construction practices (e.g. excavation), delays
in compensation payments triggered by construc-
tion damage, and workers’ health and safety risks,
remained challenges in 2019 but has gradually re-
duced. For some projects, legal proceedings against
developers and contractors due to construction da-
mage and claims of compensation are still ongoing
while others were closed in 2019. Some of the cases
have merit, others appear speculative.
Developers’ monitoring of E&S issues during cons-
truction and operations remained a weakness in
multiple projects, and resource-constrained Ugan-
dan government lead agencies were not able to
completely full their intended roles in monitoring
compliance. GET FiT uncovered that multiple pro-
jects have not released the required minimum ow
with adverse impacts on people and ecosystems.
Such unacceptable practices required immediate
corrective measures, which have not always been
forthcoming. GET FiT works with ERA to address
these non-compliances and develop guidance for
future follow-up of environmental ow releases.
Challenges continued to be observed in the transi-
tion from the construction phase team to the ope-
rations phase team including ensuring adequate
hand-over and institutionalising local knowledge and
understanding of sensitive issues. It was positive to
note that some projects retained one of the envi-
ronmental and social ocers from the construction
phase, and this person plays an important role in
community liaison as operations phase issues arise,
for instance grievances.
One approved project had its support revoked by
the GET FiT Steering Committee in 2015 due to
consistent serious environmental and social non-
compliances. In 2016, two projects were requested
to suspend construction until corrective measures
were implemented, one project was requested to do
the same in 2017, and ve projects had stops in spe-
cic construction works in 2018 but not across the
entire project site. All projects resumed construc-
tion following substantial improvements. Two pro-
jects experienced subsidy reductions in 2018 due to
serious non-compliances that were not adequately
addressed during the cure period. No construction
stops were requested and no further subsidy reduc-
tions due to serious E&S non-compliances were is-
sued in 2019 but subsidy payments were postponed
because of such non-compliances.
A limited number of projects still had substantial
non-compliances related either to construction or
operations at the end of 2019 and will likely face ac-
tions by GET FiT in 2020. The serious non-complian-
ces will be followed up by GET FiT in 2020 in order to
nd workable solutions.
3.3 Improvements and Remaining Challenges
GET FiT Uganda
48
Annual Report 2019
49
T
he Government of Uganda, in cooperation with
development partners, has made signicant
progress in reinforcing grid infrastructure for
the integration of renewable energy projects during
2019. These eorts will eventually result in more re-
liable transmission and distribution networks across
the board. However, considerable work remains in
order to adequately evacuate power from operatio-
nal projects and establish new lines for projects un-
der construction. Several interventions are already
underway.
Four additional projects (Kyambura, Ndugutu, Sindi-
la, and Siti 2) were connected and synchronised to
the Ugandan national grid in 2019 following success-
ful commissioning tests by UETCL. Kyambura had
proximity to an existing 33 kV distribution grid and
faced fewer grid connection challenges. However,
Siti 2, Sindila and Ndugutu experienced inadequate
or unreliable power evacuation and registered sig-
nicant deemed energy claims at the end of 2019.
Figure 18 shows the planned, actual and deemed
energy outputs of the GET FiT portfolio projects in
2019 (left axis). It also shows the percentage of dee-
med energy relative to total potential generation
(right axis). As seen in the gure, ve projects had
deemed energy levels of more than 20 percent. No-
tably, Siti 2 SHP barely delivered electricity during its
rst months of operations (since August 2019), as
the required transmission line was still under cons-
truction. This, together with the unreliable connec-
tion experienced at Waki SHP, contributed towards
the high portfolio average of 22 %.
04 Grid Connection Status
and Challenges
4.1 Operational Projects
Figure 18 | Planned, Annual and Deemed Energy Generation from GET FiT Projects in 2019
* Kyambura, Ndugutu, Sindila, and Siti 2 were commissioned during the year and their planned generation is shown for operational months only.
40
20
Kakira Kyambura*Lubilia Muvumbe Ndugutu*Nkusi NyamwambaRwimi Sindila*Siti 1Siti 2* Soroti TororoWaki
0
60
80
100
120
140
160 100 %
90 %
80 %
70 %
60 %
50 %
40 %
30 %
20 %
10 %
0 %
Deemed Energy (percent) Planned Energy (GWh) Actual Energy (GWh) Deemed Energy (GWh)
GWh
Deemed Energy as Percent of Total Generation Potential
(Actual + Deemed)
GET FiT Uganda
50
As seen in Figure 18, there is a wide variation in the
reliability of power evacuation among commissioned
projects that require a dedicated follow-up. Concer-
ted eorts are needed to strengthen the national
grid in order to maximise the benets of GET FiT dis-
tributed generation. The evacuation challenges and
interventions experienced by selected projects com-
missioned in 2019 are highlighted below.
Siti 2 SHP
Since commissioning, Siti 2 SHP (16.5 MW) has been
marginally evacuated through a 33 kV connection
via the neighbouring Siti 1 SHP (6.1 MW). The eva-
cuation through Siti 1 was an interim measure only
to enable commissioning of the plant; it does not
allow for proper operation of Siti 2. To this end, a
new 125 km (33 kV) line to Mbale substation is being
constructed by distribution grid operator Umeme
(tasked by GoU) to enable higher production levels
at Siti 2. Due to poor planning at GoU level, construc-
tion of the new line started too late and was not yet
completed by the end of 2019. Consequently, the
project has registered deemed energy levels at 95 %
since commissioning.
As at the end of 2019, the new line was in the advan-
ced stages of construction with poles erected and
line stringing ongoing. It is expected to be commis-
sioned in Q1 2020. KfW and the GET FiT Secretariat
continue to engage with all stakeholders towards
expediting the line’s implementation.
Sindila and Ndugutu SHPs
The Sindila (5.3 MW) and Ndugutu (5.9 MW) SHPs in
Bundibugyo were commissioned and declared ready
for synchronisation to the national grid in February
and October 2019 respectively. Both projects are
connected to the grid through a new 4.8 km 33 kV
line from the projects’ switchyards to the existing
grid at Bubandi for evacuation towards Fort Portal.
The existing grid connection is not adequate to eva-
cuate both projects at full generation capacity.
REA is constructing a new 104 km 33 kV line from
Bubandi to Fort Portal with funding from the UK
Department for International Development (DFID)
through GET FiT to adequately evacuate both pro-
jects. The line construction has been delayed and is
expected to be completed during 2020. GET FiT will
continue to engage with GoU, the Implementation
Consultant and Contractors to ensure that the im-
plementation of the line is expedited.
Waki SHP
Since it’s commissioning in December 2018, Waki has
faced challenges achieving full power evacuation due
to several technical constraints on the project area
grid. The project is connected to the Hoima Bulin-
di Waki 33 kV distribution line. The technical prob-
lems identied on this line following an inspection by
the developer in 2018 included faulty insulators, old
poles, faulty transformers and inadequate earthing
and line protection in parts. Uganda Electricity Dis-
Annual Report 2019
No. Project
Capacity
(MW)
Expected
COD
Status*
Deemed
Energy Risk
1 Nyamagasani 1 15.0 Q4 2020 Delayed. Line to be expedited by REA. High
2 Nyamagasani 2 5.0 Q2-Q3 2020 Delayed. Line to be expedited by REA. High
3 Kikagati 16.0 Q1 2021 Completed. Line built by REA. Low
Table 2 | Status of Interconnection of GET FiT Projects Still Under Construction
*Status as of 31.01.2020
51
tribution Company Limited (UEDCL) undertook seve-
ral interventions to improve the line, including line
clearances, improved protection scheme through
installation of jumpers, dropout fuses and an auto-
recloser, and the installation of transformers.
However, the project continued to face grid chal-
lenges during 2019. Key among these, as reported
by the developer, were frequent tripping of the line
especially during the night and in the rains, with
delayed response from UEDCL to rectify the faults;
earth faults and poor line clearances along certain
line segments; inadequate line protection including
faulty fuse dropouts and load break switches; rot-
ten and leaning electricity poles; faulty transformers;
and lack of eective communication with the UETCL
SCADA system so that the auto-recloser cannot be
remotely controlled after a trip.
A technical team with representation from ERA,
UEDCL, Umeme, REA and the developer was consti-
tuted to oversee continued interventions on the grid
aimed towards full evacuation of the project.
Nkusi SHP
The evacuation of Nkusi SHP has also experienced
several challenges since the project’s commissio-
ning in 2018. The project’s generation was capped
to 4 MW, out of 9.6 MW, in early 2019 due to high
losses (>50 %) reported by UEDCL in wheeling ge-
nerated power from the project through its distribu-
tion network to the UETCL substation in Fort Portal.
In order to mitigate the network losses and improve
the project’s power evacuation, the System Planning
and Coordination Committee (SPCC) comprising
UETCL, ERA, UEDCL, REA, UEGCL, Umeme and the
developer carried out technical simulations in 2019
to establish the cause of losses and recommend ne-
cessary interventions.
The SPCC conrmed that the network losses were
over 50 % and determined that the construction of
additional lines to provide alternative power evacua-
tion routes towards Hoima, and splitting of the Nkusi
SHP plant into two units evacuated separately would
reduce the network losses by 50 % and mitigate
deemed energy. The developer constructed an ad-
ditional 17.7 km evacuation line in 2019 with a grant
from NORAD and handed the lines over to UEDCL
in July 2019. The developer also added switches and
did line repairs during the construction phase. The
proposal to split the 9.6 MW plant into 2 x 4.8 MW
for respective evacuation was submitted to ERA for
approval. In the interim, the generation cap was rai-
sed to 6 MW.
To provide a long-term solution for the evacuation of
Nkusi and planned hydropower projects in the area,
REA plans to construct a new 33/132 kV substation
at Muzizi and dedicated 33 kV lines from the project
to the substation. The timeline for the commence-
ment of works and commissioning of the substation
is not conrmed.
The three projects still under construction have wi-
dely varying risks of timely power evacuation. The
16 MW Kikagati SHP has the lowest risk because
the evacuation line was already constructed by REA.
Nyamagasani 1 and 2, however, have the highest risk
as explained below.
4.2 Projects under Construction
GET FiT Uganda
52
Nyamagasani 1 and 2 SHPs
Construction of a joint 55 km 33 kV line to evacuate
power from both Nyamagasani 1 SHP (15 MW) and
Nyamagasani 2 SHP (5 MW) to Nkenda 132/33 kV
substation in Kasese is being implemented by REA.
An EPC contractor was procured by REA in August
2018 but construction of the line is yet to commence
due to extended delays caused by high compensati-
on costs. The lines are expected to be commissioned
in Q4 2020. With Nyamagasani 2 (5 MW) currently
expected to be commissioned in Q2-Q3 2020, there
is a high risk of deemed commissioning. The imple-
mentation of the evacuation lines for Nyamagasani 1
and 2 is part of the wider interventions through GET
FiT, and the Secretariat will continue engagements
to expedite the reinforcements.
A number of projects still have a high risk of deemed
energy obligations to GoU if critical grid reinforce-
ments are not implemented in a timely manner. Mul-
tiple interventions are ongoing, which are presented
in the following section. An overview of key ongoing
grid investments that are funded by GET FiT, or rele-
vant to the GET FiT portfolio, is provided in Figure 19.
4.3 Grid Reinforcements
Figure 19 | GET FiT Uganda Project Map with Grid Investment in Red Boxes
Grid Investment
Hydropower
Bagasse
Solar PV
33 kV Grid
Reinforcement
Mbale - Bulambuli
132 kV
LAKE VICTORIA
Sindila SHP
Ndugutu SHP
Lubilia SHP
Nyamagasani I SHP
Nyamagasani II SHP
Kyambura SHP
Kikagati SHP
Muvumbe SHP
Nyamwamba SHP
Rwimi SHP
Nkusi SHP
Waki SHP
Kakira
Soroti
Tororo
Siti I SHP
Siti II SHP
Nkenda Substation
Reinforcement
Opuyo Substation
Reinforcement
Annual Report 2019
53
Reinforcements of 33 kV Networks in
Western Uganda
The Programme secured support from DFID to
construct new 33 kV distribution lines in the west of
the country for the power evacuation of four pro-
jects. The implementing agency is REA which has
procured two EPC contractors to construct the lines
in two lots, namely: Lot A involving the construction
of 104 km of new 33 kV lines for the evacuation of
Sindila and Ndugutu SHPs in Bundibugyo; and, Lot
B involving 120 km of new 33 kV lines for evacuation
of Lubilia (5.4 MW), Nyamagasani 1 and 2 in Kasese
district. The initiative will ensure evacuation of ap-
proximately 37 MW of new generation to the natio-
nal grid.
The Works included the design, supply, construction,
test and completion of the two Lots and were expec-
ted to be completed in August 2019, as per original
EPC contracts. The contractors have completed line
route surveys, technical designs and procurement
of most of the required materials. However, the line
construction has been delayed due to costs of way-
leaves compensations in the densely populated load
centres of Bundibugyo, Fort Portal (Lot A), and Kase-
se (Lot B), where the line runs alongside a national
park. The contractors and REA are reviewing new
line routes to minimize the cost and social impact
of the lines. Construction will commence when line
rerouting is completed and Project Aected Persons
are compensated by REA. The timeframe for com-
pletion has not been conrmed by REA.
Opuyo Substation Upgrade
The objective of this interconnection component is
to install 2x40 MVA 132/33 kV transformers at the
Opuyo substation which will facilitate adequate ca-
pacity and improved reliability and security for the
evacuation of existing and planned solar generation
power plants near the Opuyo area. The Soroti solar
PV plant is evacuated through Opuyo substation.
The current transformer capacity is a single 10/14
MVA 132/33 kV transformer which presents a relia-
bility risk in case of an outage.
Regarding implementation, the contracts for the Su-
pervision Consultant and EPC contractor became ef-
fective in May 2018. The project implementation is at
advanced stages. All design and procurement have
been completed, and the construction progress was
at 87 % in January 2020. The implementation sche-
dule according to the contracts was originally 16
months but there have been delays due to slower
than expected construction of the civil works. Com-
pletion is expected in Q1 2020.
Three grid-related interventions are funded through
the GET FiT Programme, namely reinforcement of
33 kV networks in Western Uganda, an upgrade of
the Opuyo substation, and Technical Assistance to
ERA. An overview of the elements and associated in-
vestment needs is provided below. The elements are
further detailed in the following sections.
Item Required Intervention Project Owner
Estimated Costs
(MUSD)
1 Reinforcement of 33 kV networks in Western Uganda UEDCL 13
2 Opuyo Substation upgrade UETCL 5.8
3 TA support to ERA ERA 3.7
Total grid interconnection support 22.5
Table 3 | Funding Commitments for Interconnection Support through GET FiT
GET FiT Uganda
54
Technical Assistance to ERA
In addition to infrastructure reinforcements, the grid
connection support component included a budget
for technical assistance to ERA through the GET FiT
TA Facility. Several other TA components have been
conducted under the GET FiT TA Facility in previous
years. Information on these can be found in earlier
annual reports.
ERA has committed to invest in the use of information
technology to improve eciency in the execution
of its various mandates. The main objective of this
assignment is to support ERA in the successful im-
plementation of a Regulatory Information Manage-
ment System to enhance its information collection
and data processing, automate regulatory analysis
and compliance monitoring, as well as automate
interactions with its stakeholders. The contract for
the system design and preparation of tender docu-
ments was awarded to Ernst and Young Uganda and
the project was started in May 2018. The Consultant
nalised the system design and solution report and
the tender for the procurement of the contractor to
implement the system has been launched by ERA
in 2019. The system is expected to be completed in
2020.
Other Sector Interventions
Two wider sector interventions for grid reinforce-
ments will directly impact the evacuation of power
generated by GET FiT projects that are not funded by
the Programme - namely the upgrade of the Nkenda
substation and the implementation of the Mbale-Bu-
lambuli 132 kV transmissions line.
The two GET FiT projects currently under construc-
tion (Nyamagasani 1 & 2) with a combined capacity
of 20 MW will be evacuated through UETCL’s Nkenda
substation after their commissioning. Following
years of anticipated capacity shortages, the substa-
tion was upgraded by UETCL in October 2019 from
a capacity of 20 MVA at the time to 60 MVA by the
transfer of a transformer from Kanyambeho substa-
tion in Fort Portal to Nkenda. This alleviated previous
evacuation risks to the project portfolio and provi-
des adequate capacity for the renewable energy
projects in the Kasese area.
The planned 79 km Mbale-Bulambuli 132 kV trans-
mission line is expected as a long term solution to
evacuate power from the GET FiT supported Siti 1
and 2 SHPs. The line will also eliminate transmission
bottlenecks in Eastern Uganda and enhance system
reliability, availability, and quality of power supply.
The scope includes the construction of the Bulambuli
(Atari)-Mbale 132 kV transmission line and 132/33 kV
substations at Bulambuli (Atari) and Mbale.
The feasibility study including ESIA scoping of the
line has been completed, with funding from the EU
ITF through KfW. The nancing for the line’s cons-
truction by KfW is about to be secured. The line is
not expected to be completed before 2021. Hence,
as mentioned earlier in this report, a new 33 kV line
is currently being constructed as an important inte-
rim solution to evacuate power from Siti 1 and Siti 2.
Annual Report 2019
55
GET FiT Uganda
56
Annual Report 2019
57
A
s a results-based Programme, meaning that
subsidies are being paid following actual deli-
very of energy, GET FiT Uganda is dependent
on predictable commitments from sponsors in order
to be successful. Several changes were made to the
portfolio structure since the Programme’s inception
in 2013, demanding an active follow-up and resilien-
ce from all stakeholders. This requirement has also
been met by the GET FiT funders to date, enabling
the Programme to deal with any arising uncertain-
ties and risks in a relatively pro-active manner. To
this end, four development partners have taken up
the challenge and provided GET FiT with the neces-
sary funding: Government of Norway, Government
of UK (through BEIS and DFID), Germany (BMZ) and
the EU (through EU ITF). To date, circa EUR 93 million
has been committed to the Programme. An over-
view of the respective commitments can be found
in Table 4.
EUR/GBP exchange rate developments had an ad-
verse impact on the overall budget of GET FiT Ugan-
da, due to donor commitments in GBP. A budget
buer was introduced to cushion future decline in
the EUR/GBP rate until remaining disbursements
were made to KfW and converted in EUR. Reference
is made to previous GET FiT annual reports.
A limited amount of undisbursed donor contributi-
ons remains at this stage: Approximately 8 % of the
total GET FiT budget in form of 6.5 million GBP re-
main subject to foreign exchange risk. In that regard,
GET FiT regularly monitors the relevant forex de-
velopments to allow for proactive actions if needed.
05 Financial Status
5.1 Funding Commitments
Table 4 | Overall Donor Commitments to GET FiT
Note: Net amounts are based on funding disbursed to the Programme
thus far, projected exchange rates for undisbursed funds and deduction
of management fees.
Donor
Net Amount Committed
(EUR)
Norway 15,590,475
UK BEIS 28,593,096
UK DFID 14,128,113
GER BMZ 15,000,000
EU ITF 20,000,000
Total 93,311,684
GET FiT Uganda
58
GET FiT funds are disbursed for the following three
purposes:
Project grants, with 50 % paid at commercial ope-
ration date and 50 % paid in the form of results-ba-
sed support over the rst ve years of operation,
subject to actual generation,
Consultants under the Technical Assistance Faci-
lity for ERA,
Consultants for the overall management and mo-
nitoring of the Programme.
Figure 20 illustrates the actual (up to and including
2019) and projected disbursements from the Pro-
gramme. The overview includes net funding available
to the Programme only, after deduction of a modest
KfW management fee. The projections are based on
the status of the project portfolio and expected pro-
gress. During the rst ve years of operation of each
project, results-based disbursements in the form of
annual subsidies are made.
For the disbursement projections, the main uncer-
tainty relates to actual COD for the various projects.
Project construction delays have inuenced the dis-
bursement prole, shifting a considerable share of
COD premium payments into 2020 and 2021. With
all projects being nancially closed and under cons-
truction, future changes in the disbursement prole
will be linked predominantly to construction related
risks. There is also some uncertainty tied to the an-
nual result-based payments for each project. Since
the developers will only be paid for what they are
producing (with a cap at their planned average ener-
gy generation), signicant under-production across
the portfolio may lead to accumulation of excess
funding. Eligibility for the annual subsidy payments
will end in 2023 for all projects (except for Kikagati
in 2024, which has been granted exception due to
trans-boundary issues) signifying that there will not
be any disbursement after 2024.
The annual GET FiT Steering Committee (SC) meeting
was held on May 29, 2019 in Kampala in the presen-
ce of representatives from the German Embassy,
DFID, BEIS, the European Union, ERA, the Embassy
of Norway, MEMD, KfW and the GET FiT Secretariat
(Multiconsult). A key topic of the 2019 SC meeting
was delayed and underperforming projects, as some
were not able to meet the already extended COD
deadline of October 2019. It was decided that no fur-
ther deadline would be specied but a penalty for
projects that are not able to meet the deadline was
imposed. The penalty amounts to 2.5 % of the total
subsidy amount for every additional month of delay
beyond the October 2019 deadline (October 2020
5.2 Disbursement Projections
Figure 20 | Projected Annual Payments (Premium Payments and Consultants) under GET FiT
Note: Projections are subject to uncertainty, mainly related to individual project progress
TA Facility & Consultants COD Premium Payments Annual Subsidy Payments
Million EUR
Total, accumulated
TA Facility & Consultants,
accumulated
Million EUR accumulated
4
2
0
6
8
10
2013 20242023202220212020201920182017201620152014
16
14
12
20
10
0
30
40
60
50
100
90
80
70
Annual Report 2019
59
for Kikagati due to transboundary issues). It was ag-
reed to shift substantial amounts of these savings to-
wards the interconnection component which suers
underfunding due to delays and missing contributi-
ons from the Government of Uganda.
Figure 21 shows the relative shares of the various
cost components under the GET FiT Programme,
based on current budget reservations. Overall, ap-
proximately 8 percent of the overall funds are tied
to management, implementation and the Technical
Assistance Facility, while 92 percent of the total com-
mitments are expected to be disbursed as premium
payments.
Figure 21 | Distribution of Budget Reservation of GET FiT Uganda
Premium Payments
Hydro
68.2 %
Consultants
6.7 %
TA Facility
1.1 %
Premium Payments
Bagasse
7.0 %
Premium Payments
Solar
17.0 %
GET FiT Uganda
60
Annual Report 2019
Table 5 | Overview of Impact, Outcomes and Outputs
61
T
he GET FiT Monitoring and Evaluation frame-
work monitors the results of the Programme
through several quantitative indicators, which
are collected from project developers and key sector
stakeholders on an annual basis. The Programme’s
monitoring and evaluation are structured in a logical
framework (Logframe) outlining the relationship bet-
ween targeted Outputs, Outcomes and Impacts and
setting baselines, expected milestones and targets.
The Programme is behind schedule on achieving the
original capacity targets, which aimed at full com-
missioning of the RE portfolio by the end of 2018.
Despite the delays in project implementation, inten-
sive eorts in previous years has resulted in good
progress on most reporting dimensions.
Notably, due to a lower share of biomass projects
in the portfolio than anticipated, the original capaci-
ty targets of 170 MW and 830 GWh/year, will not be
achieved. Programme targets have not been revised
to this end. Other targets that relate to the portfolio
size, such as nance mobilised, or displacement of
thermal generation may also be aected by the ove-
rall reduced capacity of the portfolio.
Nevertheless, the project portfolio delivered a 20 %
increase in energy generation in 2019, and is already
reaching, and even exceeding, some 2023 targets,
such as job creation and sector-related indicators.
With the commissioning of the entire portfolio in
2020/2021, and improved grid connection for some
operational projects, the Programme also expects
continued improvement in delivered results in the
coming years.
An overview of the targeted Outputs, Outcomes and
Impacts is provided in the overview below. The follo-
wing section will address these goals in more depth,
providing details and context on the development
of the Programme. It should be noted that an ad-
ditional indicator Output indicator 5.4 has been
added in 2019, tracking online delivery of ERA ser-
vices in relation to the implementation of the Regu-
latory Information Management System (RIMS) in
2019/2020.
06 Programme Monitoring &
Risk Management
6.1 Programme Monitoring
1. Increased small scale RE
capacity & generation.
2. Balanced portfolio of RE
technologies.
3. Reduced GHG emissions.
4. Increased number of
Ugandan national jobs.
5. Increased capacity of ERA
6. Finance mobilised for
GET FiT portfolio
Uganda pursues a low carbon,
climate resilient development
path, resulting in growth, poverty
reduction and climate change
mitigation.
1. Improved private sector
investment environment for
renewable energy in Uganda.
2. Improved nancial stability
of energy sector.
Outcomes ImpactOutputs
GET FiT Uganda
62
Outputs
The Programme made progress on a range of
Programme monitoring indicators in 2019 with
the commissioning of four additional hydropower
plants. Electricity generation picked up with appro-
ximately 315 GWh delivered to the grid in 2019. This
represents approximately 56 percent of planned an-
nual generation of commissioned projects overall.
The dierence can be explained by commissioning
of projects during late 2019, as well as grid-related
issues causing high deemed energy levels for cer-
tain projects. With 14 projects now to produce a full
year and at least two other projects set for commis-
sioning in 2020, the overall portfolio generation is
expected to substantially increase in the coming ca-
lendar year.
The GET FiT portfolio is represented in most regions
of the country and multiple renewable energy tech-
nologies contributing to the country’s geographical
and technological diversication: The Programme
has generation capacity in all regions of the coun-
ty, except in Northern Uganda and has projects
with Solar PV, Hydro and Bagasse technologies. In
addition, it is diversifying the group of developers,
contractors and other players that participate in the
Ugandan electricity sector; almost 50 percent of ge-
neration projects in the country (14 out of 30) are
supported by GET FiT.
With an increasing level of energy generation, the
Programme portfolio is contributing to reducing
Uganda’s GHG emissions. Due to the overall imple-
mentation delays for the portfolio, GET FiT is not yet
able to oset all the thermal electricity generation
to the Ugandan grid. However, thermal generation
has reduced signicantly from 200 GWh in 2018 to
almost 100 GWh in 2019. It will be exciting to see to
what extent GET FiT can continue to oset thermal
generation in 2020, while awaiting commissioning
of the 600 MW large hydropower plant Karuma in
Uganda.
The GET FiT portfolio has direct eects on the local
economy and made a substantial contribution to
local job creation. This is represented by almost
10,500 newly created jobs (FTE’s Full Time Equi-
valent) in relation to the portfolio alone, by far ex-
ceeding the initial target. In 2019, the portfolio has
contributed another 1,700 FTE jobs, compared to
last year’s 2,700. This decline is due to more projects
reaching commercial operations and fewer cons-
truction jobs. Notably, the share of Ugandan emp-
loyment is almost 90 percent.
In addition, indicators relating to the Technical As-
sistance activities at the regulator ERA achieved very
positive results. Time-ecient issuance of genera-
tion licenses could be maintained from last year,
exceeding the initially targeted processing time. In
addition, a REFiT review took place in 2019, and re-
porting requirements were tracked closely and are
largely complete and on time. In line with these re-
sults, GET FiT is happy to see ERA being ranked num-
ber 1 in the Africa Electricity Regulatory Index for the
second time.
Finally, GET FiT projects have raised over USD 455
million in investments for the portfolio approxi-
mately USD 165 million in private, and USD 190 mil-
lion in public funding. Private nancing represents
a share of 36 percent. During 2019 the remaining
project Kikagati achieved nancial close.
An overview of all Output indicators is presented in
Table 6.
Annual Report 2019
63
Indicator
Target
2023
Status
2019
Target
Achieved
Comment
Output 1 – Increased small scale renewable energy capacity and generation
Indicator 1.1
MW installed
170
(158.4)
122.4 77 %
The current portfolio has a planned capacity of
158.4 MW. The original target of 170 MW will not
be achieved due to lower availability of Programme
funds and a lower share of biomass projects than
originally expected.
Indicator 1.2
GWh/year delivered to the
national grid
830
(762)
316.08 38 %
Commissioned projects have an expected annual
generation of 557.7 GWh. The current portfolio
has a planned total output of approximately
762 GWh/year.
Output 2 – Balanced portfolio of renewable energy technologies
Indicator 2.1
Number of technologies
supported by GET FiT
4 3 75 %
Supported technologies include hydropower,
solar PV and bagasse.
Indicator 2.2
Number of sub-regions with
GET FiT projects
5 4 80 %
The GET FiT portfolio includes 4 regions: Western,
South-Western, Eastern and Central.
Output 3 – Reduced GHG emissions
Indicator 3.1
Net change in GHG emissions
(Cumulative MtCO
2
e)
4.03 0.65 16 %
Power generated from the GET FiT portfolio is
currently osetting thermal generation and
reducing GHG emissions. The indicator is behind
target due to the delayed portfolio implementation.
Output 4 – Increased number of Ugandan national jobs
Indicator 4.1
Number of direct national
construction and O&M jobs (FTE)
created
4,200 10,379 247 %
GET FiT is exceeding targets on this indicator.
Approximately 1,700 full-time equivalent (FTE)
jobs were created in 2019.
Output 5 – Increased capacity at ERA
Indicator 5.1
Time taken by ERA to review
generation licence for 1-20 MW
renewable energy applications
(months)
2 1.2
Target
exceeded
Three generation licences were reviewed in 2020,
with an average time taken for the review of 35
days. This is almost equivalent to last year’s value
and exceeds the 2023 target.
Indicator 5.2
Number of REFiT tari reviews
taking place by ERA per year
1 1 100 %
In January 2019, a consultant, MS. Economic
Consulting Associates was contracted to undertake
the review of the Renewable Energy Feed in Tari
(REFiT IV). This Assignment was completed and
the ERA board approved the new set of REFiTs
eective April 2019 for another 2 years.
Indicator 5.3
Timely and complete reporting to
ERA by licensees
100 % 91 % 91 %
152 out of 168 reports were submitted complete
and on-time.
Indicator 5.4
Online delivery of ERA services
50 %
0
% 0%
The Regulatory Information Management System
(RIMS) is being implemented in the course of 2020.
Output 6 – Finance mobilised for GET FiT portfolio
Indicator 6.1
Private nance mobilised for GET
FiT portfolio (in USD million)
200 165 83 %
All projects have reached nancial close. Due to
the reduced portfolio size following inception, the
target will not be reached.
Indicator 6.2
Public nance mobilised for GET
FiT portfolio (in USD million)
300 290 97 %
All projects have reached nancial close. Due to
the reduced portfolio size following inception, the
target will not be fully reached.
Table 6 | Output Indicators
GET FiT Uganda
64
Outcomes
The outcomes address the inuence of GET FiT at
a higher sector level, namely on the private sector
investment environment for renewable energy in
Uganda, and improved nancial stability of the ener-
gy sector. A third indicator on local grid stability has
been excluded from the logframe in 2018.
7
Currently four commercial banks are nancing pro-
jects of the GET FiT portfolio. Kakira project debt is
already entirely nanced through commercial debt
and as further projects restructure debt in the fu-
ture, it is expected that more commercial banks will
become involved in the Ugandan energy sector.
The regulator has issued three development permits
and nine generation licences for renewable energy
projects with capacities under 20 MW in 2019, inclu-
ding seven hydropower projects and two solar PV
projects. ERA highlighted the progressive increase
in licence applications from 2013 until 2019 in the
annual monitoring, indicating a favourable develop-
ment of the investment environment. As highlighted
in the Output section, the process of issuing gene-
ration licences has maintained high eciency, with
only about one month taken to review applications.
While the power utility UETCL has paid all its invoices
for delivered energy in 2018, ve developers have re-
ported delayed deemed energy payments. The dee-
med energy invoicing process was reviewed by ERA
in early 2019, however, delays in payments are still
reported by developers. These delays are not consi-
dered for the indicator since deemed energy claims
are not approved for payment by UETCL, but by ERA
through the base consumer tari, which is reviewed
to include deemed energy only once a year.
The electricity purchased from thermal power stati-
ons has reduced drastically from circa 200 GWh in
2018 to ca. 100 GWh in 2019, which is well below the
target of 832 GWh in 2023. However, capacity pay-
ments remain part of a Government subsidy, which
signies that the country has not yet achieved fully
cost-reective retail taris.
An overview of the Outcome indicators is provided
in Table 7.
7
The indicators for Outcome 3 – Improved local grid stability have become inadequate for monitoring Programme performance due to various sector
developments, particularly due to the many changes in regional and national grid infrastructure and particular network solutions for GET FiT projects.
Following discussions regarding the data availability, validity and attribution (as Programme results), it was decided to remove both indicators for Outcome
3 (voltage variations and load loss at local substations) from the logframe. Notably, the TA provided by DFID via GET FiT on compliance monitoring is aimed
at making grid performance data in Uganda more precise and accessible. Therefore, Outcome 3 might be re-introduced at a later stage.
Indicator
Target
2023
Status
2019
Target
Achieved
Comment
Outcome 1 – Improved private sector investment environment for renewable energy in Uganda
Indicator 1.1
Number of commercial banks that
invest in renewable energy for
project nance lending for GET FiT
projects
5 4 80 %
Kakira has achieved full commercial bank debt.
Currently, no Uganda commercial bank is among
lenders, due to a lack of technical competence and
energy sector experience, according to developers.
Indicator 1.2
Number of development permits
and generation licences issued by
ERA per year
12 12 100 %
3 generation licences and 9 development permits
were issued in 2019.
Indicator 1.3
Occurrence of annual “UETCL
event of default” for energy
supplied (deemed energy)
0 0 n/a
There have been ve delayed deemed energy
payments. While deemed energy invoicing process
has been reviewed by ERA in early January 2019,
delays in deemed energy payments are still
reported.
Indicator 1.5
REFiT adjusted to be cost-reective
(in percent)
100 % 100 % 100 %
REFiTs were adjusted in 2019 (REFiT IV), and are
now providing ceiling taris, with a maximum
return on equity for respective technologies.
Outcome 2 – Improved nancial stability of the energy sector
Indicator 2.1
Subsidy paid by the Government
for UETCL to cover thermal power
use
0 0
Target
achieved
All energy purchased beyond stand-by capacity
was covered by taris.
Indicator 2.2
GWh purchased by UETCL from
thermal stations
832 103
Target
exceeded
The sector is well below target due to i) lower
demand for thermal power than anticipated and ii)
thermal energy being oset by renewable energy
from the GET FiT portfolio and commissioning of
Isimba. Last year’s purchases were at 199 GWh.
Indicator 2.3
Cost-reective retail taris (in
percent)
100 % 97 % 97%
Capacity payments remain part of the subsidy paid
by the Government. These increased from 95 % in
2018, to a cost reectivity at 97 % in 2019.
Annual Report 2019
65
Table 7 | Outcome Indicators
GET FiT Uganda
66
Impact
The Programme follows the impact statement “Ugan-
da pursues a low carbon, climate resilient develop-
ment path, resulting in growth, poverty reduction
and climate change mitigation”. Accordingly, the im-
pact of the Programme is measured through three
indicators, highlighted below. Due to the heavy reli-
ance on the activities of key sector actors to reach
the targets, the eects of GET FiT Uganda are limited
to a certain extent, and subject to a time lag bet-
ween GET FiT activities and observable results at a
higher sector level. Table 8 provides an overview of
the Impact indicator developments in 2019.
Grid-related CO
2
emissions have reduced in 2019.
With an increased energy generation from the GET
FiT portfolio, as well as the commissioning of the
Isimba hydropower plant, less energy was dispat-
ched from fossil fuelled power plants in 2018. As
such, the indicator is currently exceeding the target
set for 2023. While this can be attributed to an in-
crease in renewable energy supplied from GET FiT
projects and others, it is also due to a higher electri-
city consumption.
In a joint sector review during 2019 the electricati-
on rate was assessed. A signicant jump of the elec-
trication rate to 28 percent was reported. The new
Electricity Connections Policy, which launched in No-
vember 2018 was highlighted as a key contribution
to these developments. In 2019, over 150,000 new
household connections were made. The target for
the connection policy is to realise over 300,000 new
connections annually. With these developments, the
2023 target of 26.4 percent was exceeded.
Impact Indicators
Target
2023
Status
2019
Comment
Indicator 1
Grid related CO
2
emissions per unit
electricity use
0.09 0.016
Grid related CO
2
emissions decreased considerably
to 2018 from 0.037 to 0.016, which can be attri-
buted to 50 % less thermal generation and higher
consumption in 2019.
Indicator 2
Percent of population with access to
electricity
26.4 % 28 %
The electrication rate has increased signicantly
from 20 % in 2017 and 22 % in 2018 to 28 % in
2019.
Indicator 3
Electricity consumption (kWh per
capita)
105 103
Electricity consumption per capita was 101 kWh
per capita in 2018 and has seen a slight increase
in 2019.
Table 8 | Impact Indicators
Annual Report 2019
67
R
isk management is a continuous process run-
ning through the lifetime of a programme,
where risks are identied and categorised, and
measures introduced to reduce or eliminate the risks.
Grid connection. Inadequate grid infrastructure
and/or operations within the local and regional dis-
tribution and transmission networks continue to
present the main risk against achievement of Pro-
gramme targets. As a result, in 2019, approximately
22 percent of the energy generation at GET FiT power
plants failed to reach Ugandan electricity customers
due to grid availability issues (deemed energy). The
current level of deemed energy generated by GET
FiT and other power plants across the country poses
a major risk to the sustainability of the Ugandan
power sector. Importantly, the remaining three GET
FiT projects under construction are also facing chal-
lenges related to securing adequate connection to
the grid. Unless these issues are resolved prior to
commissioning of the plants, deemed energy levels
from the GET FiT portfolio could still rise signicantly.
On this basis, the risk category for grid connection is
maintained with a high probability and high impact.
Operational performance. With most of the GET
FiT projects now operational, a dierent set of risks
are introduced. The technical performance, operati-
ons and maintenance of each plant will aect the tar-
geted level of annual energy production across the
portfolio. E&S performance in the operational phase
is also vital to ensure a sustainable energy genera-
tion from GET FiT plants for the next two decades.
While GET FiT Uganda was primarily rigged to sup-
port projects up to COD (which is reected in the
Programme’s legal framework and budgets) the Pro-
gramme is also trying to monitor general post COD
performance to the extent possible. This is maintai-
ned through review of annual energy production in
relation to subsidy disbursements, and one or two
post COD visits to each project in order to capture
key issues and experiences. One issue that has be-
come clear during operational phases to date, is that
some developers are not documenting compliance
with minimum ow in a satisfactory manner. While
such operational risks are not formally part of the
GET FiT risk framework, it is highly important that
they are monitored and managed by the Ugandan
authorities. Therefore, as a rst step, KfW and the
GET FiT supervision team have addressed the issu-
es with the relevant developers and provided do-
cumentation as a basis for GoU to follow up on the
issues going forward.
Project construction delays. Although 14 GET FiT
projects are now commissioned, three projects re-
main under construction which, due to their size, re-
present more than 20 percent of the total portfolio
capacity. These projects have demonstrated unsa-
tisfactory progress over the past year due to design
and construction challenges, and two of them failed
to achieve their extended COD deadline of October
2019. This will lead to subsidy reductions and there-
by aect project viability in negative manner, while
also increasing GET FiT supervision and Programme
management cost. This risk category is still rated
with high probability and high impact.
Health, Safety and Environment (HSE). Despite
the remaining projects under construction being
pushed on maintaining timelines, it is crucial that
this does not compromise HSE performance in any
way. GET FiT is not positioned to supervise or control
the quality of developer’s HSE work daily, and these
risks are therefore not formally part of the GET FiT
risk control framework. Nonetheless, GET FiT super-
vision visits focus on monitoring performance in
that respect to the extent possible, discussing HSE
standards with developers and creating awareness
around potential risks.
An overview of the most relevant remaining risks
across the Programme is presented in Table 9.
6.2 Risk Management
GET FiT Uganda
68
Description of Risk Mitigation Actions Progress
Risk
Assessment
Deemed commissioning of
GET FiT projects due to poor
planning at key institutions, as
well as lack of funds, to ensure
timely infrastructure for grid
connection.
Operational GET FiT plants
generating power at reduced
capacity due to continued,
unresolved constraints of the
national grid (HV/MV).
Additional funding provided
by GET FiT donors to support
selected, critical grid infrastruc-
ture investments required for
connection of GET FiT projects.
Comprehensive eorts by GET
FiT to fast-track implementation
of grid infrastructure projects
managed by GoU agencies,
which are relevant to the GET T
portfolio.
Unsatisfactory progress on GET
FiT funded grid infrastructure
projects due to various imple-
mentation challenges, including
major E&S issues related to
compensation. High risk of
continued increase in deemed
energy generation from the GET
FiT portfolio.
high
Corruption, misuse of funds
and bribes paid by developers
or contractors.
Subsidies are performance-ba-
sed and disbursed for energy
delivered.
Zero tolerance in developer’s
contracts, and termination of
contracts, as well as repayment
of fees in case of paid bribes.
General risk remains until the
commissioning of all projects.
medium
Compliance with Environmen-
tal and Social standards of
developers.
Workshops on E&S standards
were provided to developers.
Penalties for non-compliance are
incorporated in subsidy agree-
ment (DFA). Additional super-
vision visits are carried out for
critical projects.
Some projects still perform unsa-
tisfactorily. GET FiT has carried
out multiple additional supervisi-
on visits, and imposed penalties
on some developers.
Compliance is continuously follo-
wed-up, including post commis-
sioning. The risk of non-compli-
ance and associated reputational
risks remain.
medium
Lower generation than estima-
ted due to insucient hydro-
logical data and/or climate
change.
Risks were included and dili-
gently assessed in hydrological
estimates and sensitivity testing
at project evaluation stage.
Generation data for all projects
is continuously followed up by
GET FiT. The realisation of hydro-
logical risks can only truly be
assessed in the fullness of time,
following a sustained period of
generation (multiple years).
medium
Insucient Programme funds
due to foreign exchange rate
developments.
Continuous budget monitoring
allows for pro-active nancial
management and early iden-
tication of risks and Steering
Committee action if needed.
Low risk level on original
Programme budget (premium
payments) due to most funds
already disbursed there. Medium
risk level remaining on grid
connection component, where a
funding shortfall is likely.
medium
Insucient understanding
of ground conditions results
in substantial changes in the
design and layout of projects
and/or adverse environmental
and social impacts as a result
of landslides or similar during
construction.
Developers required to provide
updates on geotechnical con-
ditions in the location of key
project structures and in high
risk areas during the implemen-
tation phase based on further
investigations and assessments
by geotechnical engineering
specialists. Developers reques-
ted to address key geotechnical
risks through changes in project
designs and construction metho-
dologies.
Several projects implemented
changes in designs and cons-
truction methodologies in 2018-
19 to improve the robustness of
project designs and to reduce
the likelihood of landslides. Fur-
ther changes may be necessary
for remaining projects during
2020 to manage residual risks.
medium
Table 9 | Risk Matrix
Annual Report 2019
69
GET FiT Uganda
70
Annual Report 2019
71
T
he second roll-out of the GET FiT concept
GET FiT Zambia - was ocially launched in Fe-
bruary 2018 in Lusaka and is now in its second
year of implementation. This represents a major
achievement for GET FiT and further strengthens its
prospects in Sub-Saharan Africa.
The objective of the Programme is to improve the fra-
mework conditions for private investments in small-
scale renewable energy in the country. The central
component of GET FiT Zambia is the procurement of
up to 200 MW in renewable energy projects of up to
20 MW from IPPs. The Programme is a partnership
between the Zambian Department of Energy and
KfW, implemented by the GET FiT Secretariat (mana-
ged by Multiconsult). Other key stakeholders are the
Energy Regulation Board (ERB) and the state-owned
power utility ZESCO Ltd. The Programme has alrea-
dy received a funding pledge of 41 million EUR from
the German government.
At the core of the Programme is the procurement
of 100 MW solar PV and 50 MW small hydropower
(Phase 1), with the prospect of an additional 50 MW
depending on available funding. In addition, the Pro-
gramme comprises a set of tools that addresses
barriers and gaps in the Zambian energy sector (see
illustration below).
07 GET FiT Zambia
Figure 22 | GET FiT Zambia Toolbox
5
Technical
Assistance
Skills gaps and
capacity constraints
in becoming
credible counterpart
to investors
Grid
Facility
Capacity constraints
for integration and
operation of
decentralized
intermittent RE, and
rural electrification
opportunities being
overlooked
Viability Gap
Funding
High cost of capital
for renewable
transition and new
REFiTs yet untested
Procurement &
Transactions
Debt & Risk
Mitigation Facility
Individual small
projects unable to
attract appropriate
financing and
associated DD
Lack of credibility
amongst investors
that procurement
efforts will result in
execution
- Competitive
procurement of 100
MW of Solar
Capacity
- Competitive
procurement of up
to 100 MW of Hydro
- Production-based
top up for Hydro
Projects
- Competitive bidding
top-up, based on
Usc/kWh for the
entire PPA
- Shallow and deep
integration support
(funding and TA)
- Grid-related
technical assistance
- Skill Gap
identification at key
sector stakeholders
related to IPPs
- Procurement of
tailored capacity
building and TA
programmes
- Mitigating short &
medium-term
liquidity risk
Regional Liquidity
Support Facility
(RLSF)
BARRIERS & GAPS
GET FiT TOOLBOX
GET FiT Uganda
72
Record-breaking Results in a Highly
Competitive International Tender
The rst procurement round of GET FiT Zambia has
concluded with the award of six solar PV projects of
20 MW
ac
each. The Solar tender was run as a two sta-
ge-bidding auction preceded by a pre-qualication
stage (Request for Qualication) and a combined
technical and nancial scoring at the nal bidding
(Request for Proposal) stage which was launched Fe-
bruary 2018. In April 2019, the Permanent Secretary
of the Zambian Ministry of Energy announced the
award of six solar PV IPP projects, totalling 120 MW
ac
.
The lowest successful bid came in at 3.999 USc/kWh
and the weighted average of all six successful pro-
jects is 4.41 USc/kWh.
The GET FiT Zambia Solar tender became the largest
single Solar PV tender implemented in Sub-Saha-
ran Africa (SSA) to date outside of South Africa, and
the rst time a tari below 4 USc/kWh was achieved
through a public tender in SSA. The tender had a
target outcome of a total of 100 MW
ac
, but due to the
favourable results, the GRZ and GET FiT Investment
Committee awarded an additional 20 MW
ac
.
Promoting Private Sector Engagement
in the Power Sector with a 50 MW Small
Hydro Tender
The second procurement round of the Programme
is aimed at procuring a total of 100 MW, supporting
the development of small hydropower projects up
to 20 MW. The tender process includes a prequali-
cation procedure which concluded in April 2019.
This will be followed by the award of up to 100 MW
of small hydropower capacity through the imple-
mentation of several RfPs between 2020 and 2021.
Further Information & Updates
Stay informed about development in the GET
FiT Zambia Programme, please visit the website
www.gett-zambia.org, sign up for the GET FiT
Zambia newsletter, or follow the Programme on
LinkedIn and Twitter.
Annual Report 2019
73
I
n 2020, GET FiT Uganda will focus on close fol-
low-up of the three hydropower projects still un-
der construction. The projects have already been
granted extensions beyond the original window for
GET FiT funding and further delays will jeopardise
their continued support by the Programme. Demon-
strated eorts and progress is therefore key, and
the GET FiT Implementation Consultant will under-
take supervision visits to each project until COD is
achieved. While it has already been established that
one of the projects will not reach COD until 2021, it
is expected that the other two could make it in 2020.
Some projects, both commissioned and non-com-
missioned, are still facing environmental and so-
cial compliance issues, which are being monitored
carefully by GET FiT. In general, continuous impro-
vements were observed for the projects in their
construction phase during 2019, but there are still
serious outstanding issues such as compliance with
minimum ow requirements. GET FiT will continue
to cooperate with ERA to address these issues and
provide guidance for future follow-up.
With 14 of the 17 GET FiT projects now evacuating
much needed power to the Ugandan grid, 2020 will
be another exciting year for the Programme, with
persistent challenges and a lot to celebrate. Helping
newly commissioned projects to achieve a success-
ful rst year of operations will be important, along
with close follow up for the remaining plants that are
now severely behind on their construction schedu-
les. Finally, as in previous years, continued eorts to
ensure progress on grid infrastructure investments
that aect GET FiT projects will remain critical.
The nish line for GET FiT Uganda is undoubtedly ap-
proaching fast, after more than seven years of hard
and dedicated work by a range of Ugandan stake-
holders, project developers, and development part-
ners. Certainly, the Programme is already a success
story, now contributing almost one tenth of Ugan-
da’s electricity from clean and renewable sources,
funded mainly by private investors! However, as this
report has shown, work remains. For the next cou-
ple of years, coordinated and dedicated eorts will
be needed by all stakeholders to ensure a successful
nish and a sustainable legacy.
08 Outlook for 2020
KfW Development Bank
Georg Grüner
Principal Project Manager
georg.gruener@kfw.de
www.kfw.de
Multiconsult Norge AS
Christopher Ruud
Project Manager
christopher.ruud@multiconsult.no
www.multiconsult.no