GET FiT Uganda - Annual Report 2022 : simplebooklet.com

GET FiT Uganda 2 Annual Report 2022 Executive Summary First full year of GET FiT portfolio operations 2022 was the first year in which all GET FiT projects were operational for the entire year The portfolio of 17 renewable energy projects comprising solar PV small hydropower and bagasse technologies now has a combined installed capacity of 158 MW with an estimated annual energy yield of approximately 760 GWh The actual energy delivered in 2022 was 502 GWh however for several operational reasons Deemed energy energy that could not be delivered due to grid constraints accounted for approximately 91 GWh The remaining difference between the estimated and actual annual generation in 2022 can be attributed to low sugarcane availability at the bagasse plant as well as the below average hydrological year experienced by several of the small hydropower plants Contributing to an improved private sector investment environment Besides enabling the implementation of 17 small scale renewable energy projects by private developers GET FiT has further assisted authorities in the energy sector via several Technical Assistance activities over the years contributing to a transparent and robust regulatory framework In that respect the Ugandan Energy Regulatory Authority ERA has been ranked to have the best regulatory framework in Africa for five consecutive years in the Africa Electricity Regulatory Index a strong indicator of a favourable investment environment Creating jobs reducing emissions and diversifying the country s power supply By the end of 2022 more than 13 500 FTEs were employed in Uganda more than three times the target with the majority of FTEs being Ugandan nationals Generation from the renewable energy projects has furthermore avoided the release of approximately 1 4 million tons of CO2e from alternative power generation sources With projects spread across four different regions in Uganda and three different generation technologies the GET FiT portfolio has further contributed to the diversification and resilience of the country s power supply Continued challenges in power evacuation Power evacuation remains a challenge for a number of projects resulting in continued high deemed energy Whilst improvements to the evacuation infrastructure in 2022 benefited several projects evacuation challenges persisted at those projects commissioned in the second half of 2021 As a result deemed energy equated to approximately 15 of the total annual generation potential in 2022 Gradual progress on implementing the Interconnection Component To address evacuation challenges and strengthen the grid GET FiT is providing further support through a separate Interconnection Component in Western Uganda This further intervention will benefit several GET FiT projects as well as other generation projects in the region and is expected to substantially reduce deemed energy liabilities for the Government of Uganda GoU Implementation delays have persisted since 2018 however and further dedicated efforts during 2022 were required to resolve key stakeholder issues and prioritise the intervention Construction is now scheduled to commence in mid 2023 with an estimated 6 8 months duration to complete Environmental and social performance as a key focus Environmental and social performance has been a focus area for GET FiT since the inception of the Programme throughout the development and construction phases of the projects and now during the operating phase Monitoring has particularly focused on checking compliance with Ugandan regulations and the environmental and social performance standards PS of the International Finance Corporation IFC Following up closely in this area has been important with several environmental and social issues requiring particular attention throughout the implementation phase Fish migration challenges continued to be a key focus at two GET FiT supported projects during 2022 and will require continued follow up in the coming year 3

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GET FiT Uganda 10 Annual Report 2022 01 About GET FiT Uganda The GET FiT Uganda Programme was officially launched on May 31st 2013 The Programme which was developed by the Government of Uganda GoU 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 Uganda GET FiT is supported by the Governments of Norway the United Kingdom Germany and the European Union 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 carbon development path resulting in growth poverty reduction and climate change mitigation by facilitating private sector involvement and improving the framework conditions for private investments in renewable energy The GET FiT Uganda objectives include fast tracking a portfolio of 17 small scale renewable energy RE projects promoted by private developers with a total installed capacity of 158 MW This yields approximately 760 GWh of clean energy production per year transforming Uganda s energy mix and resulting in Emission reductions of roughly 10 million tonnes of CO2 during the 20 year lifespan of the 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 significantly 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 projects with a limited amount of results based grant funding A more comprehensive description of the specific 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 are presented in the GET FiT Annual Reports produced since 2013 Following the success of the Programme in Uganda the GET FiT concept has been replicated in other countries with the launch of GET FiT Zambia in 2018 and GET FiT Mozambique in 2022 11

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GET FiT Uganda 12 Annual Report 2022 02 Project Portfolio Status 2 1 Portfolio Status 2 1 1 Overview All 17 of the small scale renewable energy projects supported by the GET FiT Programme were connected to the grid by the end of 20211 providing a combined installed capacity of 158 4 MW During 2022 the first year with all projects fully operational the portfolio delivered a total of 502 GWh to the grid corresponding to 9 of the total grid electricity supplied in Uganda If all deemed energy had also been delivered to the grid the corresponding numbers would have been approx 593 GWh Despite all projects being operational in 2022 the portfolio generation potential was only at approximately 80 of the estimated average portfolio generation of 760 GWh per annum The lower generation potential in 2022 can be predominantly attributed to high planned production from Kakira which was not achieved due to continuing challenges with an under supply of sugarcane as well as lower hydrology for the hydropower plants compared with the estimated average hydrological year Several hydropower plants also experienced relatively short lived operational outages due to various reasons which also contributed to lower overall generation By the end of 2022 the GET FiT portfolio had collectively delivered almost 2 TWh to the grid since Programme inception The portfolio is estimated to have the effect of reducing CO2 emissions by approximately 10 million tonnes over the 20 year lifespan of the PPAs During the preceding two years 2020 and 2021 the construction and operation of several small hydropower projects SHPs had been adversely impacted by the coronavirus pandemic and flooding events both separately recognised as Force Majeure events Recovery efforts continued into 2022 and were largely concluded with operating stage impacts in 2022 substantially reduced compared with previous years Several challenges still remain to be addressed in 2023 and beyond including critically completing the long awaited permanent power evacuation solutions for several of the SHPs as well as follow up of recently commissioned projects to ensure compliance with GET FiT Programme requirements 2 1 2 Completion of May 2020 Flood Recovery Efforts The four SHPs affected by the May 2020 floods the Nyamagasani 1 and 2 Nyamwamba and Lubilia SHPs had experienced varying degrees of damage Recovery efforts enabled already operational projects to recommence operations in 2020 and projects still under constructing to commence commercial operations in 2021 Nevertheless further construction works were required to preserve the integrity of key project structures in the long term which were still ongoing entering 2022 as summarised below Nyamagasani 1 and 2 SHPs Critical riverbank erosion protection works were significantly damaged in the 2020 floods and required reconstruction to protect the powerhouses of both plants as well as alongside the reconstructed sections of Nyamagasani 2 SHP upper waterway These works were completed in 2022 concluding the flood recovery efforts for the Nyamagasani 1 and 2 SHPs Nyamwamba SHP At the Nyamwamba SHP the May 2020 floods resulted in significant damage to the intake structure and environs Following the reconstruction of the intake and recommencement of plant operations in 2020 the Developer subsequently embarked on a pro 1 An overview of the implementation timescales for each GET FiT supported project from approval in principle to construction start and commissioning is provided in the GET FiT 2021 Annual Report see GET FiT Annual Reports for further details 13

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GET FiT Uganda gramme to minimise the risk of similar damage in future flood events The Programme included major channel realignment works and construction of a flood diversion wall and riverbank erosion protection works The designs were concluded by the end of 2021 following a period of extended design optimisation to bring construction costs to acceptable levels The works were subsequently commenced and completed in 2022 It was further understood that erosion in the upstream catchment during the May 2020 floods had led to localised slope failures along the riverbanks resulting in a substantial increase in the nature and volume of suspended sediment transported by the river The increase in sediments had adversely affected plant operations in 2020 and throughout 2021 Plant operating protocols were subsequently modified to reduce the volumes of sediments entering the project waterway which continued throughout 2022 and reduced overall generation The developer also studied possible modifications to sediment capture structures and the procurement of additional equipment to further reduce sediments entering the waterway Considerations in this regard were still ongoing at the end of 2022 Lubilia SHP The May 2020 floods also resulted in damage at the Lubilia SHP intake and riverbank adjacent to the switchyard at the powerhouse Whilst the riverbank repairs and erosion protection works at the switchyard were completed in 2021 riverbank repairs at the intake and waterway were ongoing eventually being completed in the first half of 2022 Whilst this largely concluded the flood recovery efforts for the Lubilia SHP further requirements for additional riverbank erosion protection works upstream of the powerhouse were still being considered at the end of 2022 2 1 3 Remaining Challenges The completion of the long term power evacuation infrastructure for several GET FiT supported SHPs remained a critical outstanding issue in 2022 with completion now expected in 2024 Implementation delays continued to result in substantial deemed energy claims throughout the year as well as delaying the completion of remaining plant commissioning tests for several SHPs GET FiT and supporting partners continue to follow up and support the projects in any possible way to ensure completion of the remaining power evacuation infrastructure as quickly as possible to minimise future deemed energy claims see Chapter 4 for more details Sediment management also continued to remain a challenge for some of the SHPs with efforts still ongoing at the end of 2022 to either optimise plant operating protocols or to explore adaptations to existing structures The performance of sediment management facilities at several SHPs is still to be proven heading into 2023 Lastly the final three projects in the portfolio that achieved commercial operation in 2021 the Nyamagasani 1 and 2 and Kikagati SHPs will also continue to require follow up during 2023 to ensure that Programme requirements are fulfilled and that procedures and protocols for the operating phase are appropriate This includes ensuring fish passage and migration as well as community health and safety at some of the projects 2 1 4 Consequences of Achieving Delayed Commerical Operation It was previously determined by the GET FiT Steering Committee SC in 2019 that projects achieving their Commercial Operation Date COD beyond the extended GET FiT Programme deadline of 31 October 20192 would remain eligible for GET FiT support though the subsidy would be reduced for each full month of delay beyond the deadline3 It was further determined by the SC in 2020 that where there were genuine and justifiable Force Majeure claims arising out of the coronavirus pandemic and extreme flooding events the projects still under construction beyond the deadline the Nyamagasani 1 and 2 SHPs and the Kikagati SHP would be eligible for subsidy reduction relief The Developers claims of Force Majeure delays were evaluated by GET FiT in 2021 and early 2022 taking account of legal aspects a review of construction progress throughout 2020 and 2021 as well as decisions by the Uganda Electricity Transmission Company Limited UETCL and ERA with respect to the PPAs The evaluation concluded in Q1 2022 and an estimated delay duration assigned to each Force Majeure event4 The delay duration beyond the Programme deadline was subsequently reduced for each project 2 The GET FiT Steering Committee resolved in 2018 that at the discretion of the GoU represented by KfW the contractual deadline for all projects still constructing beyond 31 December 2018 would be extended to 31 October 2019 Kikagati received an additional extension until 31 October 2020 due to transboundary issues the project is facing 3 Further details are provided in the GET FiT 2021 Annual Report see https www getfit uganda org annual reports for further details 14 Annual Report 2022 by an equivalent number of months and the total subsidy reduction calculated on this basis For operational projects affected by Force Majeure events during 2020 a delayed submission of annual subsidy claims equivalent to the Force Majeure delay duration was permitted where such delay duration was justified in line with an earlier SC determination4 Irrespective of the duration of evaluated Force Majeure delays and whether projects were already operational or were delayed in achieving COD the cut off date for final subsidy disbursements made under the GET FiT Premium Payment Mechanism remains as 2023 2024 for Kikagati 2 1 5 Power Plant Performance in 2022 Whilst the impacts of the coronavirus pandemic and the 2020 flooding events had largely diminished several projects still experienced higher than expected internal outages during 2022 due to various reasons Several of the hydropower projects continued to experience challenges with debris accumulation at waterway intake structures as well as sediment accumulation whilst others also experi enced small landslides along waterway structures and equipment failures which resulted in operating downtime Generation constraints at the Kakira cogeneration plant CHP as a result of a low availability of sugar cane continued in 2022 this is discussed further in Section 2 2 1 Overall this had the effect of lowering the average plant availability across the portfolio to 96 which is lower than expected for renewable energy projects of this age5 With the completion of long term power evacuation infrastructure still outstanding for several GET FiT supported projects grid availability improved in 2022 with an average of approximately 91 across the portfolio compared with 87 in 2021 Whilst this represents a year on year improvement deemed energy claims as a proportion of the plants energy potential was approximately 15 in 2022 highlighting the critical nature of completing the new power evacuation lines and upgrades The plant and grid availabilities are shown in Figure 1 below 100 90 80 70 60 availability 50 40 30 20 10 0 Siti 1KySaHmPbura SHPWaki SHSPindila SHP Siti 2MSuHvuPmbe SHPNkusiNSHdNuPgyaumtuaSgHasPani 1 SHRPwimi SHLPubilia SKHiNPkayagmatiaSgHasPanNiy2amSHwPamba SHKPakiraSSoHroPti SoTloarroProV Solar PV Grid availability Plant availability Figure 1 Grid and plant availability during 2022 for all operational GET FiT supported hydropower projects 4 Six months being the maximum possible subsidy reduction relief that a Project could be eligible for per Force Majeure event in accordance with the legal interpretation of the DFA 5 Due to differences in the reporting of internal outage hours between the projects the actual average plant availability is likely to be marginally higher than reported 15

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Energy GWh Energy GWh GET FiT Uganda The energy delivered to the Ugandan grid plus deemed energy by the GET FiT supported hydropower projects during 2022 is summarised in Figure 2 below compared against the average annual generation estimated at GET FiT application stage 5 For the SHPs the generation potential in 2022 was on average 85 of the annual generation estimated at application stage compared with 120 in 2020 and 94 6 in 2021 indicating that 2022 was a below average hydrological year As in previous years the Sindila and Ndugutu SHPs located on the western side of the Rwenzori Mountain range had a generation potential of only 60 and 84 of expected annual generation respectively In the east of Uganda the Siti 1 and 2 SHPs located on Mount Elgon also had a substantially lower generation potential in 2022 at 67 and 38 respectively despite previously experiencing generation potential well above the estimated annual generation There were however several hydropower plants that exceeded their annual generation estimates demonstrating the potential for wide hydrological variability across the country as well as the advantage of a distributed power system tending to average out differences in hydrology over the country Further years of operation will improve certainty with respect to the energy potential of the small hydropower projects compared with the estimates made at application stage The total energy delivered across the portfolio including all 17 projects during 2022 was 502 GWh which represents circa 66 of the total planned annual generation at application stage The total energy delivered per hydropower project is shown in Figure 3 120 110 100 90 80 70 60 50 40 30 20 10 0 Lubilia SHP Waki SHP SNityia1mSaHgPasani 2 SHNPdugutu SHPSindila SHP Rwimi SMHuPvumbe SKHyPamburNaySaHmPwamba SHP NNkuyasimSaHgPasani 1 SHP Siti 2 SHPKikagati SHP Planned energy GWh Energy actually delivered to the grid GWh Deemed energy GWh Figure 2 Planned energy versus energy delivered plus deemed energy during 2022 for all GET FiT supported hydropower projects 5 The potential energy or generation potential refers to the total energy actually delivered plus deemed to have been delivered accounting for grid outages The potential energy therefore reflects water availability during the year compared with the planned annual generation at application stage Missed generation as a result of internal outages is not included as developers are not paid for such outages under the PPA nor DFA 6 The 94 excludes the energy potential of the Nyamwamba and newly commissioned Nyamagasani 1 and 2 and Kikagati SHPs Energy potential data for the Nyamwamba SHP are incomplete for 2020 due to the damage sustained to project structures as a result of the May 2020 floods The 94 furthermore includes estimated deemed energy values for the Waki SHP as deemed energy is still to be reconciled with UETCL for 2020 and 2021 16 Annual Report 2022 350 300 250 200 150 100 50 0 Nyamagasani 2 SHP SindNilyaaSmHaPgasani 1 SHNPdugutu SHPKikagati SHP Lubilia SHP WakiNSyHaPmwamba SHKyPambura SHP Siti 1 SHP Rwimi SMHPuvumbe SHP Siti 2 SHP Nkusi SHP Figure 3 Cumulative generation from COD until end of 2022 for all GET FiT supported hydropower projects 2 1 6 Expected Portfolio Output All GET FiT projects are now operational feeding up to 158 4 MW of electricity to the Ugandan grid with small scale geographically distributed energy from three different production technologies Approximately 75 of the portfolio installed capacity is contributed by 14 hydropower projects while about 15 of the capacity is coming from two solar projects and the remaining 10 from bagasse However a larger share of the planned electricity generation is coming from bagasse and an equally smaller fraction from solar due to the difference in capacity factor of these technologies The total installed capacity is only about 93 of the originally planned capacity of 170 MW as Programme funding was lacking to award more projects under the Programme and because the biomass portfolio was smaller than anticipated Figure 5 provides a schematic illustration of the merit order effect of the GET FiT portfolio considering the current installed capacity of 158 4 MW The merit order effect 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 can off set expensive thermal generation grey area that is associated with high GHG emissions The indicative demand curve is based on 2021 figures as demand data for 2022 was not available at the time of writing this report Due to GET FiT approximately 22 of total generation capacity from renewable sources has been added thereby reducing generation from the heavy fuel oil plants in the country When the 600 MW Karuma Hydropower Project commissions it is expected that Uganda will face a significant surplus generation capacity compared to demand in the short to medium term Solar PV Bagasse 158 4 MW Solar PV Bagasse 760 GWh year Hydro Hydro Figure 4 GET FiT Portfolio composition across technologies 17

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GET FiT Uganda Kakira CHP Operational Bagasse Capacity inMW 20 0 Planned Generation inGWh year 147 0 Total Investment in million USD 56 8 GET FiT Commitment in million USD 7 1 Annual Generation inGWh Estimated Generation 87 76 65 86 71 2018 2019 2020 2021 2022 Uganda 22 The Kakira CHP located in the Jinja District of Eastern Uganda was the first operational project supported by GET FiT The plant uses bagasse from sugar production as feedstock for electricity generation In 2022 the Kakira power plant generated 70 7 GWh a decrease in power generation of 18 compared to 2021 and the plant produced only 41 of planned generation The reduction in cane supply from outgrower farmers was the primary reason for this decline The disruption in outgrower cane supply was principally due to competition over sugar cane from multiple sugar factories in the region around Kakira and to some extent caused by climatic conditions The shortage of cane supply from outgrowers resulted in a reduction in the available bagasse to generate adequate steam for electricity generation However grid availability increased from 92 in 2021 to 97 in 2022 Additionally there was a large reduction of over 60 in unplanned internal outages In 2021 the project experienced multiple internal outages reaching a peak in November and December due to a rotor replacement Conversely there was an all time low scheduled maintenance in 2022 totaling 160 hours This can be seen from the improvement in plant availability from 87 percent in 2021 to 98 percent in 2022 meaning that the plant could have produced much more had the sugar cane supply not been low 14 00 12 00 10 00 Energy GWh 8 00 6 00 4 00 2 00 0 00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Planned Energy GWh Actual Energy GWh Figure 7 Kakira Bagasse cogeneration plant Planned versus Actual Energy Output 2022 Soroti Solar PV Operational Annual Report 2022 The Soroti 10 MWp Solar PV in the Soroti District in Eastern Uganda was commissioned in November 2016 It was the second GET FiT supported project to be commissioned the first grid connected solar plant in Uganda and was at commissioning the largest project of its kind in the East and Central African Region The total generation from the plant in 2022 was 16 2 GWh comparable with previous years being just above the average of 16 1 GWh from the first six full years of operation 2017 2022 inclusive The plant availability was reportedly 100 with all planned maintenance activities having been undertaken outside of sunlight hours Grid availability was also generally higher than experienced at most other GET FiT supported projects with an average in 2022 of nearly 99 This still resulted in nearly 0 5 GWh of deemed energy claims equivalent to nearly 3 as a proportion of the overall generating potential of the plant Nevertheless this represents a year on year reduction in deemed energy claims since 2019 Since commencing commercial operations the plant has on average generated nearly 97 of the estimated annual generation when accounting for grid availability 2 00 1 80 1 60 1 40 1 20 1 00 0 80 0 60 0 40 0 20 0 00 Planned Energy GWh Actual Energy GWh Deemed Energy GWh Figure 8 Soroti Solar PV Planned versus ActualEnergy Output 2022 Solar PV Capacity inMW 10 0 Planned Generation inGWh year 17 5 Total Investment in million USD 14 3 GET FiT Commitment in million USD 9 6 Annual Generation inGWh 17 17 17 16 17 Estimated Generation 2018 2019 2020 2021 2022 Uganda 23

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GET FiT Uganda Siti 1 SHP Operational Hydropower Capacity inMW 6 1 Planned Generation inGWh year 25 0 Total Investment in million USD 15 0 GET FiT Commitment in million USD 3 6 Annual Generation inGWh 33 27 26 Estimated Generation 17 17 2018 2019 2020 2021 2022 Uganda 24 This run of river hydropower plant in Bukwo District in Eastern Uganda has been operational since May 2017 During 2022 the project delivered 15 3 GWh of energy to the grid substantially less than the estimated annual generation partly resulting from a drier than average hydrological year and continued issues with grid availability The plant experienced substantially higher than expected internal outages due to scheduled and unplanned maintenance as a result of equipment failures This had the effect of reducing plant availability to 95 which is substantially lower than expected for a plant of this age Substantial grid failures and outages continued throughout 2022 with grid availability reportedly as low as 81 on average Whilst this represented an improvement compared with previous years lost generation due to grid availability accounted for approximately 9 of the potential annual generation Adjusting for the partial availability of the power evacuation line as well as internal outages the energy potential of the plant during 2022 would have been approximately equivalent to 70 of the average annual energy estimated at application stage This low potential energy production shows that the hydrology was lower than the plant is designed for The long term power evacuation solution for the Siti 1 SHP and downstream Siti 2 SHP which comprises a new 132 kV transmission line between Mbale and Bulambuli is expected to substantially improve the availability and reliability of power evacuation from the two plants The timeline for completing the permanent evacuation solution is currently unclear 4 00 3 50 3 00 2 50 2 00 1 50 1 00 0 50 0 00 Figure 9 PlaSnitnie1dSEHnePrg yP GlaWnhn ed verAscutusaAl EcnteuraglyE GnWerhg y OutpDueetm 2e0d2E2n ergy GWh Muvumbe SHP Operational Annual Report 2022 This run of river hydropower project in Kabale District in South Western Uganda has been operational since May 2017 In 2022 the Project generated 36 8 GWh Combined with the energy generated since achieving commercial operation the Project has contributed more than 170 GWh of electricity to the Ugandan grid the second highest in the portfolio Nevertheless the plant has continued to experience ongoing issues with higher than expected suspended sediments passing through the waterway and generating units In 2022 scheduled and unplanned maintenance which included replacing equipment due to sediment impacts as well as other non sediment related issues resulted in a plant availability less than 98 which is lower than expected Grid availability was approximately 94 on average during 2022 broadly consistent with the average grid availability since the plant achieved commercial operation This resulted in deemed energy claims as a proportion of the plant s energy potential of nearly 9 Adjusting for the partial grid availability and internal outages the cumulative plant generation would instead have been 40 8 GWh approximately equivalent to 130 of the average energy estimated at the application stage Since commencing commercial operations the plant has on average generated more than 111 of the estimated annual generation when accounting for grid availability and is one of the best performing plants in the portfolio 4 50 4 00 3 50 3 00 2 50 2 00 1 50 1 00 0 50 0 00 Planned Energy GWh Actual Energy GWh Deemed Energy GWh Figure 10 Muvumbe SHP Planned versus Actual Energy Output 2022 Hydropower Capacity inMW 6 5 Planned Generation inGWh year 31 0 Total Investment in million USD 12 5 GET FiT Commitment in million USD 4 5 Annual Generation inGWh 38 32 32 32 40 Estimated Generation 2018 2019 2020 2021 2022 Uganda 25

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GET FiT Uganda Tororo Solar PV Operational Solar PV Capacity inMW 10 0 Planned Generation inGWh year 16 0 Total Investment in million USD 19 6 GET FiT Commitment in million USD 8 0 Annual Generation inGWh Estimated 16 16 16 16 16 Generation 2018 2019 2020 2021 2022 Uganda 26 The 10 MWp Tororo Solar PV project in Tororo District Eastern Uganda commenced commercial operations in September 2017 The plant generated 15 5 GWh in 2022 comparable with previous years being just below the average of 15 8 GWh from the first five full years of operation 2018 2022 inclusive The plant availability was nevertheless below expectations at 95 due to unplanned internal outages resulting from corrective maintenance interventions on inverters and not the entire facility The maintenance required remote intervention from the inverter manufacturer and on site technicians Planned maintenance outages were performed after production hours to avoid interference with production during daytime thus resulting in no outages due to scheduled maintenance Grid availability was very good at nearly 100 as in previous years resulting in only minor external outages and less than 1 missed generation as a proportion of the plant s overall generating potential Accounting for the outages the plant would have been able to generate 15 7 GWh approximately equivalent to 101 of the estimated annual generation at application stage Since commencing commercial operations the plant has on average generated nearly 103 of the estimated annual generation when accounting for grid availability 1 80 1 60 1 40 1 20 1 00 0 80 0 60 0 40 0 20 0 00 Planned Energy GWh Actual Energy GWh Deemed Energy GWh Figure 11 Tororo Solar PV Planned versus Actual Energy Output 2022 Rwimi SHP Operational Annual Report 2022 This run of river hydropower project in Kasese and Bunyangabo Districts in Western Uganda has been operational since October 2017 The project generated 24 9 GWh during 2022 despite substantially higher than expected internal outages due to scheduled and unplanned maintenance Plant availability during 2022 was therefore well below that expected for a plant of this age at 95 The plant continued to experience large volumes of accumulated sediments in the reservoir as was experienced in 2020 and 2021 This resulted in prolonged plant outages in 2022 with sustained efforts required over several days to clear sediments Combined with planned maintenance activities this had the effect of reducing the plant availability to just above 97 lower than expected for a SHP Grid availability was at 98 better than at any other GET FiT hydropower project resulting in comparatively low deemed energy claims Adjusting for the low plant availability and grid outages the plant would have been able to generate a combined 27 0 GWh during 2022 equivalent to approximately 100 of the estimated annual average energy Since commencing commercial operation the average annual generation is generally in line with the estimated annual energy at application stage with the plant averaging just over 100 of the estimate per annum when accounting for grid availability 4 00 3 50 3 00 2 50 2 00 1 50 1 00 0 50 0 00 Planned Energy GWh Actual Energy GWh Deemed Energy GWh Figure 12 Rwimi SHP Planned versus Actual Energy Output 2022 Hydropower Capacity inMW 5 5 Planned Generation inGWh year 27 0 Total Investment in million USD 19 9 GET FiT Commitment in million USD 3 9 Annual Generation inGWh 29 26 29 25 26 Estimated Generation 2018 2019 2020 2021 2022 Uganda 27

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GET FiT Uganda Lubilia SHP Operational Hydropower Capacity inMW 5 4 Planned Generation inGWh year 22 0 Total Investment in million USD 16 0 GET FiT Commitment in million USD 3 2 Annual Generation inGWh Estimated 21 20 22 Generation 16 18 2018 2019 2020 2021 2022 Uganda 28 This run of river hydropower plant in Kasese District in Western Uganda has been operational since early April 2018 The plant delivered a total of 18 4 GWh of electricity to the Ugandan grid in 2022 The generation was noticeably lower than the planned annual generation as a result of substantial grid availability issues Internal planned and unplanned outages as a result of multiple equipment failures and repairs resulted in an average plant availability for the year of 97 5 below expectations for a SHP of similar age The substantial grid failures and external outages resulted in missed generation approximately equivalent to 19 of the total generation for the year energy delivered plus deemed energy Accounting for both internal and external outages the plant would have instead been able to generate a combined 23 1 GWh during 2022 approximately equivalent to 105 of the estimated annual average energy Based on the average annual generation since commencing commercial operation the actual potential energy of the plant is closer to 93 on average of the annual generation estimated at application stage when accounting for grid availability excluding the missed generation from prolonged internal outages 3 00 2 50 2 00 1 50 1 00 0 50 0 00 Planned Energy GWh Actual Energy GWh Deemed Energy GWh Figure 13 Lubilia SHP Planned versus Actual Energy Output 2022 Nkusi SHP Operational Annual Report 2022 This run of river hydropower plant in the Kibaale and Hoima Districts in Western Uganda has been operational since June 2018 The Project generated 52 4 GWh during 2022 Since achieving commercial operation the Project has contributed more than 300 GWh of electricity to the Ugandan grid the largest contribution from a single project within the portfolio Nevertheless internal outages during 2022 due to scheduled and unplanned maintenance predominantly resulting from modifications to existing structures to improve plant performance were higher than expected for a plant of this age with plant availability as low as 96 Whilst grid failures and external outages continued to be an issue in 2022 grid availability had generally steadily improved since the start of commercial operations as a result of several previous interventions Deemed energy had consequently steadily fallen from nearly 25 in the first full year of operation to approximately 5 in 2022 representing a substantial improvement Adjusting for external outages the plant would have been able to generate a combined 55 2 GWh during 2022 approximately equivalent to 120 of the average annual energy estimated at GET FiT application stage Since commencing commercial operation the actual energy has consistently been above the estimated generation at application stage indicating that there is potential for a higher installed capacity at the site At application stage the subsidy commitment for the Project was reduced from 6 7 million USD to 2 8 million USD until sufficient Programme funds were available Due to the financial status of the Programme the subsidy commitment for the Project was adjusted to the initial commitment accordingly in 2022 8 00 7 00 6 00 5 00 4 00 3 00 2 00 1 00 0 00 Planned Energy GWh Actual Energy GWh Deemed Energy GWh Figure 14 Nkusi SHP Planned versus Actual Energy Output 2022 Hydropower Capacity inMW 9 6 Planned Generation inGWh year 46 0 Total Investment in million USD 19 6 GET FiT Commitment in million USD 6 7 Annual Generation inGWh 77 77 57 40 55 Estimated Generation 2018 2019 2020 2021 2022 Uganda 29

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GET FiT Uganda Nyamwamba SHP Operational Hydropower Capacity inMW 9 2 Planned Generation inGWh year 39 0 Total Investment in million USD 28 7 GET FiT Commitment in million USD 5 8 Annual Generation inGWh Estimated Generation 32 34 29 24 17 2018 2019 2020 2021 2022 Uganda 30 This run of river hydropower plant is located in Kasese District in Western Uganda The plant achieved commercial operation in April 2018 but sustained substantial damage to key structures in May 2020 as a result of a major flood The plant was consequently out of operation until October 2020 and not restored to full capacity until June 2021 In 2022 the plant s first full calendar year of operation since the flood damage internal outages were higher than expected with scheduled and unplanned maintenance predominantly a result of ongoing equipment repairs The plant availability during 2022 was therefore well below that expected for a plant of this age at 92 The May 2020 floods had resulted in a substantial increase in the volume and apparent nature of the suspended sediments transported by the river As a result the plant was forced to routinely stop generating to prevent sediments from overwhelming and damaging project structures and equipment The Developer consequently implemented new physical measures which were completed in 2022 as well as operational measures to lessen the impacts on generation The requirement for further measures continues to be studied The reported hydrology in 2022 was lower than expected and only 27 7 GWh of electricity was delivered to the grid Adjusting for internal and external outages the plant would have been able to generate a combined 29 3 GWh during 2022 approximately equivalent to 75 of the average annual energy estimated at GET FiT application stage 4 50 4 00 3 50 3 00 2 50 2 00 1 50 1 00 0 50 0 00 Planned Energy GWh Actual Energy GWh Deemed Energy GWh Figure 15 Nyamwamba SHP Planned versus Actual Energy Output 2022 Waki SHP Operational Annual Report 2022 This run of river hydropower plant in Hoima and Buliisa Districts in Western Uganda has been operational since December 2018 In 2022 the plant delivered 16 7 GWh to the grid substantially lower than the estimated annual generation Grid availability continued to be poor and was 81 on average during 2022 with the plant experiencing more than 100 hours of outage per month on average The high grid outages and curtailment generally provided the plant operators with sufficient opportunity to undertake maintenance minimising internal maintenance outages and plant availability was consequently very good at close to 100 The deemed energy amounts the plant is eligible for between 2020 and 2022 have still not been approved due to ongoing discussions with UETCL regarding the method of measurement This is expected to be resolved in 2023 Until the deemed energy quantities for 2019 2022 are approved the energy potential of the plant during these years remains unconfirmed However based on available data the plant is expected to have had a generation potential during 2022 of 107 8 compared with the estimated annual generation of which 36 was estimated to be deemed energy Accounting for deemed energy the plant has had an average annual generation potential since COD of more than 122 4 00 3 50 3 00 2 50 2 00 1 50 1 00 0 50 0 00 Planned Energy GWh Actual Energy GWh Deemed Energy GWh Figure 16 Waki SHP Planned versus Actual Energy Output 2022 8 Preliminary estimates based on claimed deemed energy values which are still to be reconciled with UETCL for 2019 2022 Hydropower Capacity inMW 4 8 Planned Generation inGWh year 25 0 Total Investment in million USD 17 3 GET FiT Commitment in million USD 3 6 Annual Generation8 inGWh 40 31 22 26 25 Estimated Generation 2019 2020 2021 2022 2023e Uganda 31

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GET FiT Uganda Sindila SHP Operational Hydropower Capacity inMW 5 3 Planned Generation inGWh year 27 0 Total Investment in million USD 19 4 GET FiT Commitment in million USD 3 9 Annual Generation inGWh Estimated 27 Generation 19 18 16 11 2019 2020 2021 2022 2023e Uganda 32 The Sindila run of river hydropower plant in Western Uganda was developed in parallel with the Ndugutu SHP and commenced commercial operations in May 2019 The plant delivered 13 5 GWh to the grid in 2022 Due to ongoing hydrology and grid constraints however the full suite of commissioning tests have still to be completed The grid availability in 2022 was 85 resulting in over 100 hours of outages per month on average Since the start of commercial operations deemed energy as a result of grid outages and generation curtailment represent 16 of the plant s energy potential The high grid outages and curtailment generally provided the plant operators with sufficient opportunity to undertake maintenance minimising internal maintenance outages However a slope failure in November 2022 caused damage to the headrace pipeline rendering the plant inoperable until temporary repairs could be carried out Permanent repairs are planned for 2023 Adjusting for outages the plant could have generated 16 4 GWh in 2022 equivalent to 62 of the estimated annual energy at application stage This is comparable with the average energy from the first three full calendar years of operation of 65 indicating that the hydrological basis for the plant may be lower than expected Construction of a new power evacuation line from Bundibugyo to the Fort Portal substation along with grid reinforcements is expected to reduce outages and enable both the Sindila and adjacent Ndugutu SHPs to generate at full capacity Construction is set to begin in mid 2023 4 00 3 50 3 00 2 50 2 00 1 50 1 00 0 50 0 00 Planned Energy GWh Actual Energy GWh Deemed Energy GWh Figure 17 Sindila SHP Planned versus Actual Energy Output 2022 Siti 2 SHP Operational Annual Report 2022 The Siti 2 hydropower plant is located in Bukwo District Eastern Uganda and has been operational since July 2019 In 2022 the plant generated 25 6 GWh of energy which was lower than the estimated annual generation due to a drier hydrological year and high internal outages Modifications to the existing project structures for safety requirements resulted in substantially higher than expected scheduled and unplanned maintenance reducing the plant s availability to 87 the lowest in the portfolio in 2022 and missed generation equivalent to more than 20 of the annual generating potential Despite grid failures and outages the grid availability improved to 94 on average partly a reflection of the much lower hydrology high internal outages and therefore lower than expected generation with deemed energy due to grid availability accounting for approximately 3 of the potential annual generation Adjusting for internal and external outages the plant s energy potential in 2022 would have been approximately equivalent to 48 of the average annual energy estimated at the application stage However the average annual generation during the first three full years of operation was approximately 77 A long term power evacuation solution which includes a new 132 kV transmission line is expected to improve availability and reliability power evacuation from the Siti II and Siti I SHPs in the future 10 00 8 00 6 00 4 00 2 00 0 00 Planned Energy GWh Actual Energy GWh Deemed Energy GWh Figure 18 Siti 2 SHP Planned versus Actual Energy Output 2022 Hydropower Capacity inMW 16 5 Planned Generation inGWh year 72 0 Total Investment in million USD 33 0 GET FiT Commitment in million USD 10 2 Annual Generation inGWh 97 44 37 27 70 Estimated Generation 2019 2020 2021 2022 2023e Uganda 33

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GET FiT Uganda Kyambura SHP Operational Hydropower Capacity inMW 7 6 Planned Generation inGWh year 36 7 Total Investment in million USD 24 0 GET FiT Commitment in million USD 5 4 Annual Generation inGWh Estimated Generation 38 34 39 37 18 2019 2020 2021 2022 2023e Uganda 34 The Kyambura run of river hydropower plant located in the Rubirizi District in Western Uganda has been operational since July 2019 The plant has been successful in delivering clean electricity to the Ugandan grid providing 24 7 GWh of electricity in 2022 and more than 100 GWh since its commissioning The plant availability remained greater than 99 during 2022 which is in line with expectations for a new SHP However the generation at the Kyambura SHP was constrained during the year The plant output was curtailed at around 5 5 MW due to limited grid capacity in the area combined with the successful commissioning of a non GET FiT supported SHP in late Q1 2022 Since its commercial operation the Kyambura SHP has achieved an average of just over 100 of the forecast annual energy delivered plus deemed energy when accounting for grid availability The generation losses during 2022 were higher than average for the preceding two full years of operation Adjusting for the partial availability of the power evacuation line the cumulative energy output of the plant during 2022 would have been 38 5 GWh approximately equivalent to 105 of the annual average energy estimated at application stage The cause of the fish death in the Kyambura river in February 2021 was not definitively established but the most likely explanation appears to be inappropriate sediment flushing from the Kyambura SHP dam Following stakeholder objections to further sediment flushing by the project a more controlled sediment flushing was finally accepted and undertaken in late 2022 The flushing reportedly took place without any fish death 6 00 5 00 4 00 Energy GWh 3 00 2 00 1 00 0 00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Planned Energy GWh Actual Energy GWh Deemed Energy GWh Figure 19 Kyambura SHP Planned versus Actual Energy Output 2022 Ndugutu SHP Operational Annual Report 2022 This run of river hydropower plant in the Bundibugyo District in Western Uganda was developed in parallel with the Sindila SHP located on an adjacent river basin also supported by GET FiT Ndugutu SHP delivered 18 GWh to the grid in 2022 The plant commenced commercial operations in October 2019 but still has outstanding commissioning tests due to a combination of limited available water and grid constraints Grid availability continued to be poor and was 85 on average during 2022 with the plant experiencing more than 100 hours of outage per month on average Grid constraints furthermore continued to effectively limit the combined output from the Sindila and adjacent Ndugutu SHPs to a combined 8 MW Since the start of commercial operations deemed energy as a result of grid outages and generation curtailment represent nearly 20 of the plant s energy potential Adjusting for the partial availability of the power evacuation line the potential plant generation during 2022 would have been 22 2 GWh approximately 84 of the estimated average annual energy This is comparable with the average actual energy from the first two full calendar years of operation of 87 indicating that the hydrological basis for the plant may be lower than expected though further years of operation are necessary to draw firm conclusions in this regard 4 00 3 50 3 00 2 50 2 00 1 50 1 00 0 50 0 00 Planned Energy GWh Actual Energy GWh Deemed Energy GWh Figure 20 Ndugutu SHP Planned versus Actual Energy Output 2022 Hydropower Capacity inMW 5 9 Planned Generation inGWh year 26 5 Total Investment in million USD 17 1 GET FiT Commitment in million USD 3 2 Annual Generation inGWh 24 22 22 27 Estimated Generation 6 2019 2020 2021 2022 2023e Uganda 35

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GET FiT Uganda Nyamagasani 1 SHP Operational Hydropower Capacity inMW 15 0 Planned Generation inGWh year 64 0 Total Investment in million USD 36 1 GET FiT Commitment in million USD 9 3 Annual Generation inGWh Estimated Generation 64 64 64 56 17 2021 2022 2023e 2024e 2025e Uganda 36 This run of river hydropower plant is located in the Kasese District in Western Uganda The plant commenced commercial operations in August 2021 but has not been able to complete the full suite of commissioning tests due to ongoing grid constraints refer to Section 4 3 for details The Project generated 36 5 GWh during 2022 Despite having only been commissioned in 2021 scheduled and unplanned maintenance were substantially higher than expected for a new hydropower plant with plant availability as low as 95 Grid availability also continued to be poor in 2022 at 85 on average as a result of the interim connection arrangement with the plant experiencing more than 100 hours of outage per month on average Grid constraints furthermore continued to effectively limit the combined output from the GET FiT supported Nyamagasani 1 and 2 SHPs Kyambura SHP and Lubilia SHP with a total combined curtailment limit for all plants of 16 MW As a result during the first full year of operation deemed energy represented nearly 35 of the plant s energy potential Adjusting for external outages the plant would have been able to generate a combined 56 0 GWh during 2022 approximately equivalent to 88 of the average annual energy estimated at GET FiT application stage Further follow up of the plant is required during early 2023 to ensure that GET FiT requirements have been fulfilled including checking that procedures and protocols for the operating phase are appropriate 8 00 7 00 6 00 5 00 4 00 3 00 2 00 1 00 0 00 Planned Energy GWh Actual Energy GWh Deemed Energy GWh Figure 21 Nyamagasani 1 SHP Planned versus Actual Energy Output 2022 Nyamagasani 2 SHP Operational Annual Report 2022 This run of river hydropower plant in the Kasese District in Western Uganda was developed as part of a cascade just downstream of the Nyamagasani 1 SHP a project also supported by GET FiT and implemented by the same Developer and EPC Contractor team The plant commenced commercial operations in February 2021 and in 2022 delivered a total of 20 3 GWh of electricity to the Ugandan grid Plant availability for the year was 98 5 which is below expectations for a SHP of similar age though acceptable As for the upstream Nyamagasani 1 SHP generation in 2022 was noticeably lower than planned as a result of substantial grid constraints and an imposed generation curtailment limit of approximately 3 0 3 5 MW Since the start of commercial operations deemed energy as a result of grid outages and generation curtailment represent nearly 25 of the plant s energy potential Accounting for both internal and external outages the plant would have been able to generate a combined 26 4 GWh during 2022 approximately equivalent to 104 of the estimated annual average energy Further follow up of the plant is required during 2023 to ensure that GET FiT requirements have been fulfilled including for safe upstream and downstream fish migration see Section 3 for more information 3 50 3 00 2 50 2 00 1 50 1 00 0 50 0 00 Figure 22P lanNnyeadmEnaegragsya GnWi 2h SHP APclatunanl Eendevrgeyrs GuWs hA ctual EDneeemrgeydOEnuetprguyt G 2W0h2 2 Hydropower Capacity inMW 5 0 Planned Generation inGWh year 25 5 Total Investment in million USD 19 4 GET FiT Commitment in million USD 3 7 Annual Generation inGWh 26 26 26 13 26 Estimated Generation 2021 2022 2023e 2024e 2025e Uganda 37

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GET FiT Uganda Kikagati SHP Operational Hydropower Capacity inMW 16 0 Planned Generation inGWh year 115 0 Total Investment in million USD 88 0 GET FiT Commitment in million USD 12 3 Annual Generation inGWh Estimated Generation 115 115 115 88 2 2021 2022 2023e 2024e 2025e Uganda 38 The Kikagati Murongo run of river hydropower plant on the Kagera River is located in Isingiro District in Southwestern Uganda on the border with Kyerwa District in North Western Tanzania The plant is unlike all other SHPs in the GET FiT portfolio due to the characteristics of the site with the powerhouse located at the dam This arrangement results in a minimal waterway length and flows being diverted through the powerhouse and directly into the river downstream of the dam The dam creates a barrier to upstream fish migration in the largest river flowing into Lake Victoria and a fish passage is therefore provided to enable ecological connectivity between Lake Victoria and the Kagera River system Whilst the plant had been synchronised to the grid and was delivering energy from December 2021 final commissioning tests were not completed until Q1 2022 Deemed Energy was recognised by UETCL thereafter Nevertheless the plant delivered 68 45 GWh of electricity to the Ugandan grid in 2022 one of the single highest annual energy contributions from a GET FiT supported project Accounting for grid outages the plant would have been able to generate 88 3 GWh approximately equivalent to 77 of the average annual energy estimated at GET FiT application stage Follow up of the plant is required in 2023 concerning the long standing requirements for safe upstream and downstream fish passage and accompanying monitoring and documentation see Section 3 for more information 12 00 10 00 8 00 6 00 4 00 2 00 0 00 Planned Energy GWh Actual Energy GWh Deemed Energy GWh Figure 23 Kikagati SHP Planned versus Actual Energy Output 2022 Annual Report 2022 39

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GET FiT Uganda 40 Annual Report 2022 03 Environmental Social Performance 3 1 Overall E S Performance Projects receiving support from the GET FiT Programme are required to construct operate and maintain the renewable energy projects in compliance with national environmental and social E S regulations and international standards including the performance standards PS of the International Finance Corporation IFC These standards also cover labour and working conditions as well as health and safety of workers for project affected people and the local communities Because the IFC PS act as a global benchmark and is widely applied by international financing institutions and private investors these standards are a convenient common reference for a multi donor funded initiative like GET FiT The intense construction phase was characterised by many concurrent construction activities in total thousands of workers across the 17 projects and at times substantial E S non compliances and material risks occurred All the 17 projects are currently in the operations and maintenance O M phase and deliver power to the national grid After a number of initial non compliances and challenges during operations the O M phase is currently characterised by fewer ongoing activities a much smaller number of workers improved E S facilities and practices and overall fewer E S risks Some of the main E S issues and risks currently observed are summarised below There were two fatalities reported during operations in 2022 both at hydropower projects One incident in April 2022 resulted in the tragic loss of a project worker trying to remove accumulated sed iments in a sediment flushing pipeline using an unauthorised approach that resulted in the sudden release of high pressure water and sediments that hit the worker The second fatality was a member of the public who was intoxicated and subsequently drowned whilst crossing the river in a prohibited area near the project site and being caught by the river currents Two hydropower projects have unresolved issues concerning fish migration specifically developing and implementing procedures that ensure safe upstream and downstream fish migration across the weir The main risk in both projects is downstream fish migration which can result in excessive fish mortality if fish pass through the intake and turbines due to inadequate mitigation measures Other projects are required to ensure more responsible management of sediment flushing which means sediments should be flushed downstream from the dam or weir during high flow periods rainy season when the natural sediment load in the river is high and the added burden from a project s sediment flushing is reduced These measures will assist in safeguarding aquatic biodiversity and people dependent upon fish other aquatic life and the water resources Beyond local communities benefitting from project employment during the O M phase they also benefit from projects having constructed local water supply schemes supporting improved health facilities improved schools and other local infrastructure 3 2 Environmental Flow Working Group Hydropower projects typically result in a major reduction of the natural river flow between the intake and the powerhouse For the GET FiT supported projects this diverted river section is often 3 4 km long but can be more than 5 km In a cascade of two GET FiT supported projects a near continuous diverted river section is approximately 10 km where the powerhouse for upper project is very close to the intake of the downstream project and both projects have a diverted section in the range of 5 km The continuous release of a minimum flow environmental flow into the diverted river section to avoid drying out the 41

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GET FiT Uganda affected river section is an important and typical mitigation measure to reduce impacts on people and ecosystems along the diverted river section The volume of the minimum flow also directly impacts on the economic viability of a hydropower project as water that could otherwise be used for power generation remains in the natural river channel Defining releasing and monitoring minimum flows have proved problematic to most project developers as reported in previous GET FiT Annual Reports9 With all projects in operation some of them for more than five years the most serious non compliances in terms of failure to release the full continuous minimum flow as required by national requirements have been corrected Multiple projects have had to retrofit structures to release and monitor the environmental flow in more reliable ways Several lessons of importance for ecosystems and local communities can be learned from the non compliances and retrofitting of environmental flow arrangements Therefore GET FiT shifted some programme resources towards facilitating an Environmental Flow Working Group in Uganda to analyse and learn from the experiences of GET FiT ERA together with GET FiT facilitated the establishment of this Working Group in the second half of 2021 In addition to representatives of ERA and GET FiT the Group includes representatives from the Ministry of Energy and Mineral Development MEMD the Directorate of Water Resources Management DWRM in the Ministry of Water and Environment the National Environment Management Authority NEMA the Uganda Electricity Transmission Company Limited UETCL which is the offtaker of power from the generation projects and the Uganda Electricity Generation Company Limited UEGCL The Environmental Flow Working Group also met in 2022 and will meet again in 2023 to review and summarise lessons concerning environmental flows under GET FiT Uganda and propose practical guidance for future handling of such flows Development of clearer guidance is important as the current lack of clear national requirements or guidelines on environmental flows contributes to the challenges for project developers to study and propose appropriate levels and arrangements for minimum flow to the authorities for their review and potential approval Future guidance developed from lessons under GET FiT has the potential to improve clarity predictability and transparency for all parties involved including government agencies hydropower owners and developers and stakeholders with interests in environmental flows These lessons and any proposed guidance will also be valuable beyond Uganda 9 See for instance the Annual Report for 2017 pp 49 50 Section 3 4 Minimum flow an unresolved issue or the Annual Report for 2020 pp 48 49 Section 3 2 Environmental Flows 42 Annual Report 2022 04 Grid Connection Status 4 1 Portfolio Overview of Grid Connection During 2022 deemed energy10 claims continued to pose significant challenges across the project portfolio accounting for 15 of potential annual generation This is a slight improvement compared to 2021 where deemed energy accounted for approximately 15 of generated electricity The graph below highlights the actual energy production plotted against the expected or projected energy and the approved deemed energy claims by project GWh Deemed Energy as Percent of Total Generation Potential in 2022 Actual Deemed 160 100 90 140 80 120 70 100 60 80 50 40 60 30 40 20 20 10 0 0 Kakira Kyambura Lubilia Muvumbe Ndugutu NkuNsiyamwamba Rwimi Sindila Siti 1 Siti 2 Soroti Tororo Waki KikagaNtyi amagasanNiy1amagasani 2 Deemed Energy percent Planned Energy GWh Actual Energy GWh Deemed Energy GWh Figure 24 Planned Annual and Deemed Energy Generation from GET FiT Projects in 2022 4 2 Project Challenges and Interventions Waki SHP The 4 8 MW Waki SHP has been unable to achieve full capacity dispatch since commissioning in December 2018 due to technical constraints on the Uganda Electricity Distribution Company Limited UEDCL operated 33 kV distribution line to Hoima The project is currently able to dispatch 2 5 to 3 5 MW of its installed capacity when the line is available UEDCL has implemented several interventions over the years to improve the performance of the line leading to gradual improvements in power evacuation During 2022 the utility replaced 80 rotted wooden poles in critical line sections cleared overgrown bushes along the line including sections in Budongo forest installed and connected protection equipment auto recloser to SCADA and replaced faulty distribution transformers along the line to improve the network reliability 10 Energy that a generation facility is prevented from delivering to the offtaker due to grid constraints or limited demand 43

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GET FiT Uganda Remaining activities include the replacement of over 200 rotten poles additional bush clearances along the line and replacement of faulty protection equipment three load break switches six dropout fuses etc ERA has approved investments by UEDCL to undertake further necessary network improvements during 2023 Nkusi SHP The split of power evacuation at the 9 6 MW Nkusi SHP into two routes towards Hoima and Fort Portal respectively in 2021 reduced technical losses by 50 and led to the lifting of a 6 MW limit on the plant s generation and dispatch During 2022 practical efforts were continued by UEDCL and the developer to improve the distribution network s performance The developer deployed teams to monitor the two evacuation line routes and engage the utility operations teams for the respective routes This has helped with the timely rectification of outages caused by faults There are also joint patrols of the lines done by teams from the utilities and developer to oversee necessary line surveys pole condition and bush clearances The developer also contribut ed to the line protection efforts by providing operation sticks to UEDCL offices The coordinated efforts have resulted in reduced downtime of the line and better reliability resulting in a significant decrease in deemed energy generation from 8 44 GWh in 2021 to 2 81 GWh in 2022 Siti I II During 2022 the 6 1MW Siti 1 and 16 5MW Siti 2 SHPs were jointly evacuated through the new 125 km 33 kV line from the projects to Mbale which was commissioned in December 2020 Previously power from Siti I was evacuated through a separate line into the UEDCL distribution network The evacuation of both plants through the new line reduced the overall deemed energy but the line losses increased significantly During the period January to November 2022 over 7 GWh of losses were recorded on the line The losses would be mitigated in the interim by stringing a second conductor onto the existing evacuation line infrastructure which was designed for a double circuit but currently has only one circuit strung The long term solution would be the planned construction of the Mbale Bulambuli 132kV transmission line which is not expected before 2025 4 3 Status of GET FiT Interconnection Support The objective of the GET FiT interconnection component was to reinforce 33kV distribution grids in Western Uganda to ensure adequate grid integration and power evacuation of five GET FiT projects The project initiated in August 2018 with the procurement of EPC contractors has experienced extensive delays with no construction started since 2018 It is being implemented in two lots power evacuation of Sindila and Ndugutu SHPs in Bundibugyo district Lot A 104 km and Nyamagasani 1 Nyamagasani 2 and Lubilia in Kasese district Lot B 126km with a combined capacity of 37MW The project continued to experience delays during 2022 mainly related to the transition of REA into MEMD Following several engagements between KfW GET FiT and GoU it was agreed to accelerate the implementation of the project and have it managed as a priority for the Government Wayleaves compensation payments for LOT A and LOT B have progressed by the end of December 2022 but additional verification of information for wayleaves compensation payments was still outstanding at the end of the year Finalization of compensation payments is only expected until mid 2023 Procurement of the design consultant for construction supervision is expected to be completed by the end of April 2023 The construction works are expected to start by May 2023 with an expected construction period for both lots of 6 8 months The disbursement period for the project as well as the project completion time have been extended up to 31 December 2023 44 Annual Report 2022 05 Technical Assistance The GET FiT Programme has supported regulatory capacity building initiatives at ERA and other sector agencies through the Technical Assistance TA Facility since 2013 A timeline of the TA Facility components and activities is presented on the next page The Regulatory Information Management Systems RIMS whose implementaton status is described below is the latest component of the TA Further details of previously implemented TA and its impact on ERA s regulatory function are documented in earlier annual reports available at https www getfit uganda org annual reports and summarized in the figure below 2014 Due diligence methodology and procedures were developed training seminar was held and final report delivered by Grontmij Solar PV Agent ERA staff participated in the project site visits and were closely involved in the appraisal Tariff modelling services to train ERA staff in tariff modelling was procured by a consortium led by Frankfurt School UNEP Collaborating Centre Compliance monitoring of transmission and distribution companies proposal of expanding the DD scope Interconnection Code and Standards Wheeling Agreement was proposed as part of the Interconnection component of the TA Facility 2016 ERA held a successful two day GET FiT Forum funded by the TA Facility with technical workshops administrated by Multiconsult and Investment Committee members Revisions of REFiT conducted by the TA facility and the Frankfurt School Approval of new tariffs for the period 2016 2018 to maintain financial viability of future small hydro projects and bagasse Two TA components procured consultants 1 The Interconnection Code and Standards Wheeling Agreement component was awarded Intec GOPA with the aim of establishing technical requirements for grid connection and defining responsibilities and associated costs for the wheeling of electricity and 2 Optimisation of Compliance Monitoring of Distribution and Transmission Licensees and Regulatory Capacity Building was awarded Azorom Fichtner and Kaizen Africa 2018 Continuation of the following DFID funded grid connection support components Compliance Monitoring of Distribution and Transmission Licensees was concluded in 2018 by Azorom with the establishment of licensing and performance monitoring processes for all present and future transmission and distribution licensees Regulatory Information Management System RIMS The contract for the system design and preparation of tender documents was awarded and the project was started in May 2018 2020 The RIMS contract was awarded to a Kenya based firm in October 2020 The contractor kicked off the project in November 2020 2022 Further progress was made in the implementation of the RIMS with Use Acceptance Tests UAT expected to conclude in 2023 A potential follow up for the RIMS project providing a back up system for ERA was discussed by the Steering Committee in 2022 2013 The GET FiT Secretariat builds competence within ERA Professional twinning GET FiT Secretariat present in the ERA building ERA assigned a GET FiT liaison team Technical Assistance TA Facility procured two of the planned TA components Solar Tender Agent design and implementation of tender appraisal and selection of solar PV projects Due Diligence optimising and streamlining its technical environmental and financial economic project due Diligence for the permit and license application processes 2015 The initial components solar tender agent DD of the TA facility were nearly completed and new components were introduced as part of the interconnection support Inclusion and launch of the Interconnection Component under GET FiT additional funds were allocated for associated technical assistance The consultant for compliance monitoring was under procurement The scope involved technical assessment of the network and the collection of performance data as well as developing a compliance monitoring framework 2017 ERA launched a knowledge transfer programme to institutionalise experience and competence gained throughout the implementation of the GET FiT portfolio The knowledge transfer and the following grid connection support components were funded by DFID through the grid connection support component Interconnection Code and Wheeling Agreement was concluded in 2017 Compliance Monitoring of Distribution and Transmission Licensees was still ongoing Developed a new technical assistance component to implement a Regulatory Information Management System RIMS for ERA 2019 The implementation of a modern regulatory management system was the remaining component of the DFID funded grid connection support The contract for the RIMS design and preparation of tender documents was awarded to Ernst and Young Uganda and the project was started in May 2018 The Consultant finalised the system design and solution report and the tender for the procurement of the contractor to implement the system was prepared 2021 The procurement of hardware for the ERA data centre was completed in September 2021 Due to the global pandemic the launch of RIMS was delayed and system developments were still ongoing By the end of 2021 the overall RIMS project development was at 53 to implementation completion ERA successfully solicited additional funding of USD 1 5 million from the World Bank to implement the next phase of the RIMS Figure 25 Timeline of the TA Facility components and activities from 2013 2021 45

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GET FiT Uganda 5 1 Implementation of the Regulatory Information Management System RIMS GET FiT support to the ERA RIMS project was aimed at enhancing the efficiency of information collection and data processing activities of the Regulator automate regulatory analysis and compliance monitoring and facilitate stronger webbased stakeholder engagements for effective service delivery The project commenced in 2018 with the procurement of a consultant to develop the system specifications in consultation with ERA The procurement of a system developer to build the RIMS was completed in 2020 Status of Implementation As of March 2023 the overall RIMS Project Development was 59 complete The RIMS Solution Requirements and Solution Design documents were completed and signed off by ERA in 2022 while there are still outstanding User Acceptance Tests UAT of the system at ERA based on agile testing The PreUAT status was at 53 with 11 Modules above 70 development 5 Modules between 60 70 Development in March 2023 The UAT was expected to be closed by the end of February 2023 but was delayed due to slower progress in the development of the RIMS system ERA was conducting the User Acceptance Tests for all the modules that were ready and establishing a defects log of issues to be refined by the contractor The expected project go live and execution end dates have been extended from December 2022 to June 2023 in consultation with KfW and ERA Key Challenges The RIMS project implementation has turned out to be significantly more complex than anticipated at inception in large part due to the depth of processes and systems at ERA There have been a number of reported defects related to quality control from the contractor and additional quality control layers have been implemented to ensure that they are jointly identified and quickly addressed There has been a lower release of functionality for testing against the project and release plan This has resulted in failure to meet the threshold for UATs as well as missing the Go Live date of December 2022 Measures on the project challenges have been adopted including defining a critical path for the project that will be monitored regularly Additionally a new project plan has been developed to align with the current effort Annual Report 2022 06 Financial Status 6 1 Funding Commitments During implementation the GET FiT Uganda Programme has required changes to the portfolio structure and implementation to adapt to the changing sector needs As GET FiT is a results based Programme meaning that subsidies are being paid based on actual delivery of energy it is dependent on predictable commitments from development partners and an active follow up from all stakeholders Four development partners have taken up the challenge and provided GET FiT with the necessary funding Government of Norway Government of UK through BEIS and FCDO formerly DFID Germany BMZ and the EU through EU ITF About EUR 93 5 million have been committed to the Programme and an overview of the respective commitments can be found in the table below The amount available for the Programme to fund subsidies and other project components is to some extent dependent on the exchange rates between GBP and EUR as approximately 8 of the total GET FiT budget in the form of 6 5 million GBP is subject to foreign exchange rate risk While the exchange rate developments in 2021 had a positive impact on the overall budget of GET FiT Uganda increasing the total net commitments by circa EUR 700 000 compared to 2020 this has to a large extent been Table 1 Overall Donor Commitments to GET FiT Donor Norway UK BEIS Net amount committed EUR 15 592 885 28 297 496 UK FCDO formerly UK DFID 14 129 894 GER BMZ EU ITF 15 000 000 20 000 000 Total 93 020 275 Note Net amounts are based on funding disbursed to the Programme thus far current exchange rates for undisbursed funds and deduction of management fees reversed in the course of 2022 A budget buffer is set aside from the committed Programme funds to cushion such fluctuations and a potential future increase in the EUR GBP rate GET FiT frequently monitors exchange rate developments to allow for proactive action if needed 46 47

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Million EUR Million EUR accumulated GET FiT Uganda 6 2 Disbursement Projections GET FiT funds are disbursed for the following three purposes Project grants 50 is paid at COD and up to 50 is paid in the form of results based support over the first five years of operation subject to actual generation Consultants under the TA Facility for ERA Consultants for the overall management and monitoring of the Programme The actual Programme disbursements to date and projected disbursements in 2023 and 2024 are illustrated in Figure 26 The projections are based on the status of the project portfolio and expected disbursements Only limited disbursements are planned for 2024 as no project subsidies can be paid out after 2023 with the exception of Kikagati which was granted an extension to 2024 due to transboundary issues regardless of whether the plants have produced for a full 5 years period The annual subsidy payments and COD premiums in 2023 and 2024 will likely be somewhat lower than projected due to penalties and deductions that some developers face Notably project construction delays have influenced the originally expected disbursement profile as this has led to delays in the payment of COD premiums and annual subsidies For projects that were commissioned after 2018 the total disbursed amount will be lower than what was originally granted due to the subsidy deadline in 2023 and penalties due to non compliance Even though Nyamagasani 1 Nyamagasani 2 and Kikagati were all commissioned during 2021 the projects have not yet received the COD subsidies as of the end of 2022 This is due to ongoing discussions about important project requirements see Chapter 2 It is expected that the COD subsidy payments will be made during 2023 The above mentioned reduction in subsidies implies that there will be remaining funds at the end of the Programme which can be disbursed to other project activities It has been agreed with donors that excess funding may be allocated to the interconnection component that is supported by GET FiT11 Further there are ongoing discussions to undertake TA activities and publish accompanying lessons learned brochures 16 14 12 10 8 6 4 2 0 2013 2014 2015 2016 2017 2018 2019 2020 TA Facility Consultants COD Premium Payments 90 Total accumulated 80 70 TA Facility Consultants 60 accumulated 50 40 30 20 10 0 2021 2022 2023e 2024e Annual Subsidy Payments Figure 26 Projected Annual Payments Premium Payments and Consultants under GET Note Projections are subject to budget uncertainty Subsidy penalties were considered in the disbursement projection 11 The GET FiT commitments to the interconnection component is not included in the financial status overview and disbursement projections 48 Annual Report 2022 Figure 27 shows the relative share of the various cost components under the GET FiT Programme based on current budget reservations Overall approximately 8 of the overall funds are tied to management implementation and the TA Facility while 92 of the total commitments are allocated to premium payments TA Facility Premium Payments 1 1 Consultants Solar 6 7 17 0 Premium Payments Bagasse 7 0 Premium Payments Hydro 68 2 Figure 27 Distribution of Budget Reservation of GET FiT Uganda 49

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GET FiT Uganda 50 Annual Report 2022 07 Programme Monitoring Risk Management 7 1 Programme Monitoring The GET FiT Monitoring and Evaluation framework 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 is structured in a logical framework Logframe outlining the relationship between targeted Outputs Outcomes and Impacts and setting baselines expected milestones and targets 2022 was the first year with all projects being operational throughout the year which gets the Programme closer to achieving annual production targets Overall energy generation increased by approximately 20 year on year as the increase in capacity was partly offset by frequent and long grid outages with a total generation of 502 GWh However due to a lower share of biomass projects in the portfolio than anticipated the original capacity 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 finance mobilised or displacement of thermal generation are also be affected by the overall reduced capacity of the portfolio Notwithstanding the Programme is already reaching and even exceeding some 2023 targets such as job creation and sector related indicators We expect improved grid connection for some operational projects in the following years as there are ongoing efforts to improve the grid infrastructure from the projects with high deemed energy An overview of the targeted Outputs Outcomes and Impacts is provided in the overview below The following section will address these goals in more depth providing details and context on the development of the Programme Table 2 Overview of Impact Outcomes and Outputs Outputs Outcomes 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 1 Improved private sector investment environment for renewable energy in Uganda 2 Improved financial stability of energy sector Impact Uganda pursues a low carbon climate resilient development path resulting in growth poverty reduction and climate change mitigation 51

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GET FiT Uganda Outputs 2022 marked the first year where the entire GET FiT portfolio was fully operational With Kikagati Nyamagasani 1 2 commissioning in 2021 the full planned capacity of 158 MW is now installed The overall generation of 502 GWh in 2022 represents approximately 61 of the 2023 target However when comparing with the planned generation from the portfolio which is slightly smaller than the targeted size the production comprised 66 of the planned output Grid outages were consistent with 2021 levels which impaired the electricity generation and led to relatively high deemed energy figures in 2022 The high deemed energy figures were to a large extent driven by evacuation problems from the three projects which were commissioned in 2021 However we expect improvements in grid connection which will rectify and improve the deemed energy figures in 2023 ERA has approved investments by UEDCL to undertake further necessary network improvements during 2023 as presented in Section 4 The GET FiT portfolio is contributing to the country s geographical and technological diversification being represented in most regions of the country and multiple renewable energy technologies In addition it is diversifying the group of developers contractors and other players that participate in the Ugandan electricity sector almost 50 of the grid connected generating power plants in the country 17 out of 36 are supported by GET FiT The GET FiT portfolio has direct effects on the local economy and made a substantial contribution to local job creation This is represented by approximately 13 570 created jobs FTEs Full Time Equiv alent by far exceeding the initial target In 2022 the portfolio has contributed another 580 FTE jobs compared to last year s 1 260 This decline is due to the commissioning of the remaining projects as construction jobs are no longer required and are replaced by mostly O M workers The share of Ugandan employment has significantly improved from averaging 86 in 2021 to 96 in 2022 but with fewer total available jobs in the operational phase In addition indicators relating to the TA activities at the regulator ERA provide positive signals ERA was ranked number 1 in the Africa Electricity Regulatory Index for the fifth consecutive year in 2022 However the implementation of the RIMS component experienced further delays and therefore the licensee reporting has not been digitalised yet The expected project launch and execution end dates have been extended from December 2022 to June 2023 in consultation with KfW and ERA Also more than USD 455 million in investments have been raised for the GET FiT portfolio thereof approximately USD 165 million are represented by private and USD 290 million by public funding Consequently private financing represents a share of 36 Finally the GET FiT portfolio which is fully operational as of 2022 contributes to reducing Uganda s GHG emissions from thermal generation Thermal generation has decreased the past few years from 100 GWh in 2019 to 75 GWh in 2022 An overview of all Output indicators is presented in Table 3 52 Annual Report 2022 Table 3 Output Indicators Indicator Target 2023 Status 2022 Target Achieved Comment Output 1 Increased small scale renewable energy capacity and generation Indicator 1 1 MW installed 170 158 4 158 4 The last three projects commissioned in 2021 totalling an installed capacity of 158 4 MW The original target of 93 170 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 830 762 502 61 Output 2 Balanced portfolio of renewable energy technologies Annual production has increased by 20 from 418 GWh since 2021 The Portfolio has an expected annual generation of 762 GWh given production throughout the entire year three projects commissioned late in 2021 Deemed Energy in 2022 was about 90 7 GWh which is not considered in the reported value 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 Output 3 Reduced GHG emissions Indicator 3 1 Net change in GHG emissions Cumulative MtCO2e 4 03 1 5 Output 4 Increased number of Ugandan national jobs 80 The GET FiT portfolio includes 4 regions Western South Western Eastern and Central The cumulative net change in 2021 was at 1 17 and 37 increased by approximately 330 000 tonnes during 2022 The indicator is behind target due to the delayed portfolio implementation Indicator 4 1 Number of direct national construction and O M jobs FTE created 4 200 13 577 323 GET FiT is exceeding targets on this indicator More than 580 full time equivalent FTE jobs were created in 2022 Output 5 Increased capacity at ERA Indicator 5 1 Time taken by ERA to review generation licence for 1 20MW renewa 2 ble energy applications months NA NA No generation licences reviewed in 2022 Indicator 5 2 Number of REFiT tariff reviews taking place by ERA per year 1 0 Indicator 5 3 Timely and complete reporting to ERA by licensees 100 95 Indicator 5 4 Online delivery of ERA services 50 0 Output 6 Finance mobilised for GET FiT portfolio Indicator 6 1 Private finance mobilised for GET 200 165 FiT portfolio in USD million Indicator 6 2 Public finance mobilised for GET 300 290 FiT portfolio in USD million 100 95 0 Renewable Energy Feed in Tariffs REFiTs are not reviewed on an annual basis Procurement of a consultant has been finalised to revise and establish the REFiTs for up to 50MW for Hydropower bagasse wind and solar and establish a possible transition to alternative onboarding for RE projects 177 out of 186 reports were submitted complete and on time in 2022 ERA in Partnership with the World Bank is developing framework which will feed in the Compliance reporting for Licensees The assignment will be completed within 2023 The Regulatory Information Management System RIMS is expected to be rolled out in June 2023 83 97 All projects have reached financial close Due to the reduced portfolio size following inception the target will not be reached Mobilised finance at financial close All projects have reached financial close Due to the reduced portfolio size following inception the target will not be fully reached 53

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GET FiT Uganda Outcomes The outcomes address the influence of GET FiT at a higher sector level namely on the private sector investment environment for renewable energy in Uganda and improved financial stability of the energy sector A third indicator on local grid stability was excluded from the Logframe in 2018 Four commercial banks were providing financing to the GET FiT portfolio at Financial Close and as further projects restructure debt in the future it is expected that more commercial banks will become involved in the Ugandan energy sector While the power utility UETCL has paid all its invoices for delivered energy in 2022 seven developers have reported delayed deemed energy payments These delays are not considered since deemed energy claims are not approved for payment by UETCL but by ERA ERA has been conducting a thorough verification process in 2022 to ensure that the claims are accurate thus delaying the payment of deemed energy There were four permits issued by ERA in 2022 a decline from last year and well below the target of 12 permits and approvals per year Thermal generation is generally showing a downward trend and was at 75 GWh in 2022 well within the target of less than 832 GWh Thermal generation per year The retail tariffs continue to be 97 cost reflective for the fourth year in a row which is slightly below the target of 100 cost reflectiveness An overview of the Outcome indicators is provided in Table 4 54 Annual Report 2022 Table 4 Outcome Indicators Indicator Target 2023 Status 2022 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 5 project finance lending for GET FiT projects No Uganda commercial bank is among lenders 4 80 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 for 12 small scale projects 1 20MW by ERA per year Four permits were issued in 2022 to two cogene 4 34 ration plants one hydro power plant and one solar plant Indicator 1 3 Occurrence of annual UETCL event of default for energy supplied No UETCL defaults on payments for delivered ener gy Seven projects have reported delayed deemed 0 0 None energy payments These delays are not considered for the indicator since deemed energy claims are not approved for payment by UETCL but by ERA Indicator 1 5 REFiT adjusted to be cost reflective 100 100 Outcome 2 Improved financial stability of the energy sector Indicator 2 1 Subsidy paid by the Government for UETCL to cover thermal 0 0 power use Indicator 2 2 GWh purchased by UETCL from 832 75 thermal stations Indicator 2 3 Cost reflective retail tariffs 100 97 100 The REFiTs have ceiling tariffs and a maximum return on equity for respective technologies 0 All energy purchased beyond stand by capacity was covered by tariffs N A 97 The sector is well below target due to i lower demand for thermal power than anticipated and ii thermal energy being offset by renewable energy from the GET FiT portfolio and commissioning of Isimba UETCL purchased more thermal generation in 2022 than 2021 a 47 percent increase year on year UEGCL took over Namanve complex in 2022 Capacity payments remain part of the subsidy paid by the Government These increased from 95 in 2018 to a cost reflectivity at 97 in 2019 The cost reflectivity has since remained at the same level from 2019 2022 55

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GET FiT Uganda Impact The Programme follows the impact statement Uganda pursues a low carbon climate resilient development path resulting in growth poverty reduction and climate change mitigation The impact of the Programme is measured through three indicators which are presented below Due to the heavy reliance on the activities of key sector actors to reach the targets the effects of GET FiT Uganda are limited to a certain extent and subject to a time lag between GET FiT activities and observable results at a higher sector level The target related to grid related CO2 emissions per kWh of electricity used in Uganda was achieved some years ago and continues to decline each year From 2021 to 2022 the CO2 emissions per kWh decreased by 13 UBOS has reported a national grid electrification rate of 19 in the financial year 2021 2022 The percentage of the population with access to electricity has reduced from 28 in 2019 to 19 in 2022 This is attributed to the faster rate of population growth than the rate of electricity connections compounded by the discontinuation of the Electricity Connections Policy by GoU in 2020 due to lack of funding According to the UBOS Statistical Abstract of 2022 Impact Indicator 3 was achieved in 2020 There has been no official update on the electricity consumption per capita since then The overview of the impact indicator developments in 2022 can be found in Table 5 Table 5 Impact Indicators Impact Indicators Indicator 1 Grid related CO2 emissions per unit electricity use Indicator 2 Percent of population with access to electricity Indicator 3 Electricity consumption kWh per capita Target 2023 0 09 26 4 105 Status 2022 0 01 Comment Grid related CO2 emissions per unit electricity use decreased well below target of 0 09 19 UBOS has reported a national grid electrification rate of 19 in the financial year 2021 2022 108 Based on UBOS Statistical Abstract for 2022 56 Annual Report 2022 7 2 Risk Management Risk assessments monitoring and mitigation to alleviate the risks of external factors impacting the Programme in a negative way have been very important for the Programme to date It is still an important part of the Programme to keep improving results and leaving behind a positive impact in the country and the region In risk management it is important to both keep an eye on how probable it is that the risk will occur and what impact it will have on the Programme if the risk occurs Only then can one determine whether the risk profile is high and how important it is to implement proper mitigation measures actions With the entire generation profile operational the risks of the Programme have changed substantially The evacuation of power remains a major concern as the medium and high voltage national grid remains constrained The implementation of grid infrastructure projects to mitigate some of these concerns is progressing however with some challenges during 2022 Health risks related to COVID 19 that had an impact on construction activities in 2021 are significantly reduced with the entire portfolio being in operation and appropriate health and safety protocols and guidelines in place A major concern remains with the outstanding implementation of solutions for fish migration at the Kikagati SHP and Nyamagasani 2 SHP Further risks related to insufficient hydrological data during project design remain which can influence the planned performance of the project portfolio An overview of the most relevant remaining risks across the Programme is presented in Table 6 Table 6 Risk Matrix Description of Risk Mitigation Actions The new power lines for grid connection of GET FiT projects cannot be concluded due to severe implementation delays as the GET FiT funding window is nearing its end Ongoing high level engagement with the relevant GoU agencies and agreeing on specific milestones to be reached to facilitate the timely implementation and completion of the line Progress Risk Assessment The project experienced delays during 2022 In engagements between GET FiT KfW and GoU it was agreed that acceleration of implementation is a priority for the Government Wayleaves compensation payments have progressed but additional verification of information for compensation was still outstanding at the end of 2022 and expected to be finalized by mid 2023 Construction works are expected to conclude in late 2023 high Operational GET FiT plants generating power at reduced capacity due to continuing unresolved constraints of the high and medium voltage national grid Additional funding provided by GET FiT donors to support selected critical grid infrastructure investments required for connection of GET FiT projects Comprehensive efforts by GET FiT to fast track implementation of grid infrastructure projects managed by GoU agencies which are relevant to the GET FiT portfolio is ongoing but has proven challenging Unsatisfactory progress on grid infrastructure projects in 2022 due to various ongoing implementation challenges high Lower generation than estimated due to insufficient hydrological data and or climate change Risks were included and diligently assessed in hydrological estimates and sensitivity testing at project evaluation stage Generation data for all projects is continuously followed up by GET FiT Some plants already see a very different hydrology compared to the hydrology used as a basis for the generation estimates at application stage Nevertheless based on the first years of operation the upside and downside at project level has averaged out at portfolio level with total generation being almost 100 of the estimated annual portfolio generation medium 57

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GET FiT Uganda Corruption misuse of funds and bribes paid by developers or contractors Subsidies are performance based and disbursed for energy delivered to prevent misuse of funds Zero tolerance of bribes is agreed in developer s contracts leading to termination of contracts as well as repayment of fees as consequence Generally the risk is lower for operational projects and as such the risk assessment conclusion has been reduced from medium in the 2021 AR The risk is still present as 3 projects have still not received their COD report and that operational projects can see advantages of bribes to get generation licences approvals quicker or get proof of higher production than actually occured medium Compliance with Environmental and Social standards of developers Several operational projects have at times not fulfilled environmental flow requirements Workshops on E S standards were provided to developers Penalties for non compliance are incorporated in subsidy agreement DFA Additional supervision visits are carried out for underperforming projects A water and energy sector working group was established in 2021 in close cooperation with the relevant GoU authorities addressing the issue of minimum environmental flow compliance for hydropower projects The group is financed by GET FiT A study on E S Risks and Potential Impacts will be conducted resulting in publication of lessons learned and dissemination of results through a Workshop with relevant stakeholders Some projects still perform unsatisfactorily GET FiT has carried out multiple additional supervision visits and imposed penalties on some developers Compliance is continuously followedup including via post commissioning visits The risk of non compliance and associated reputational risks remain The Environmental Flow Working Group has developed a methodology to deduct illegal water abstractions from energy payments from GET FiT Work on this and other activities will continue in 2023 medium Fish migration issues at Kikagati and Nyamagasani 2 remain unresolved The main risk remaining at both projects is unsafe downstream fish migration that may result in excessive fish mortality if fish enters the project intake and waterway and adequate mitigation measures are not implemented The E S issues at the newly commissioned plants are being followed up through bi weekly meetings with the developers Monitoring is ongoing and independent review and support in fish monitoring via an independent consultant is being actively pursued Potential changes in project operational regimes during the downstream migratory season are discussed as a remedy The issues need to be resolved before a GET FiT COD report can be issued and the COD subsidy payment can be made Continued intensive dialogue with the developers to try to resolve the issues Terms of Reference for an independent consultant on fish migration monitoring has been drafted and procurement is starting high Insufficient Programme Continuous budget monitoring allows It is a low risk that exchange rate funds due to foreign for pro active financial management developments will constrain planned exchange rate develop and early identification of risks and project disbursements as there are ments Steering Committee action if needed currently residual funds due to lower subsidy payments than anticipated at A FOREX buffer has been set aside in inception There has been a negative low the project budget to allow for reaso exchange rate development during nable fluctuations 2022 for disbursement commitments in GBP but it is not yet lower than at the end of 2020 58 Annual Report 2022 08 Other GET FiT Initiatives 8 1 GET FiT Zambia TThe second roll out of the GET FiT concept GET FiT Zambia was launched in 2018 with the same overall objective to improve the framework conditions for private investments in smallscale renewable energy in the country The principal component of GET FiT Zambia is the procurement of up to 200 MW in renewable energy capacity from IPPs The project size is 1 MW up to 20 MW The Programme is a partnership between the Zambian Ministry of Energy and KfW and is implemented by the GET FiT Secretariat managed by Multiconsult Other key stakeholders are the Energy Regulation Board ERB and the state owned power utility ZESCO Limited GET FiT Zambia comprises a set of tools that address barriers and gaps in the Zambian energy sector see illustration below A total of six 6 solar PV with a total installed capacity of 120 MWac projects were awarded to three 3 consortia under the first tender in 2019 The tender was set up as a reverse auction and it achieved record breaking bids for Sub Saharan Africa The lowest price achieved was 3 999 USc kWh and the weighted average of the six 6 successful projects was 4 41 USc kWh The financial close of the projects has been delayed due to a challenging macroeconomic environment in the country as Zambia became the first post Covid country to default on its debt Though it has subsequently secured a debt relief package from the IMF the debt restructuring negotiations with creditors are still ongoing The Small Hydropower Programme request for proposal RfP has therefore also been put on hold until the situation improves Figure 28 GET FiT Zambia Toolbox 59

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GET FiT Uganda In the meanwhile there has been a strong focus on Technical Assistance activities and finding solutions for further implementation of the Programme With the current energy crisis in Zambia there is renewed hope that the correct efforts will be made to again prioritize implementation of energy generation projects and diversification of the production portfolio The REFiT strategy which GET FiT Zambia is the implementing Programme for aiming at facilitating private sector investment in small and medium scaled in Zambia was developed after the 2017 energy crisis in the country The climate change impacting the rainfall and water availability in the country more and more on a regular basis is proof that diversifying the energy generation mix has never been more urgent than now and programs like GET FiT can help alleviate this crisis The Programme hopes to finally come to a breakthrough with the generation projects in its portfolio so that it can help improve the county s generation mix and act as a catalyst for future renewable IPP private sector development and support the country in future years when the next drought appears Further Information Updates Stay informed about development in the GET FiT Zambia Programme please visit the website www getfit zambia org sign up for the GET FiT Zambia newsletter or follow the Programme on LinkedIn and Twitter 60 Annual Report 2022 8 2 GET FiT Mozambique Mozambique is generously endowed with renewable energy resources with the largest hydropower potential in Southern Africa and favourable conditions for electricity production from solar wind and biomass However the country is still suffering from low electricity access rates As of 2020 Mozambique s installed capacity approximately consists of 79 hydropower 20 natural gas and diesel and 1 solar totalling 2 85 GW The state owned utility EDM operates about 1 GW of this Several large energy development projects are in the pipeline The Mozambican power system is characterised by long distances between the large generation centres and the most important load centres with long and overloaded power lines resulting in poor power supply The government and EDM recognise the need to work with the private sector and alleviate the challenges related to under capacity of energy infrastructure and weak security of supply to facilitate the investments that are required for Mozambique to achieve its ambitions of ensuring access to affordable and sustainable energy for its population Building on experience from Uganda and Zambia the third roll out of the GET FiT concept in Mozambique will provide support to unlocking private investments in RE projects by reducing risks im proving attractiveness of the investment environment increasing institutional capacity and building a track record of successfully implemented projects GET FiT Mozambique is financed by the German Financial Cooperation and the European Union through KfW Development Bank and implemented by the Ministry of Mineral Resources and Energy MIREME as Project Executing Agency with the support of Multiconsult Norge AS as Programme Implementation Consultant The Government of Mozambique and KfW signed the Financial Agreement for the Programme in 2019 and its implementation kicked off in May 2022 At the core of the Programme is procurement of generation capacity by Independent Power Producers IPPs The first round will be a competitive international reverse auction for privately promoted Solar PV with battery energy storage systems BESS projects with capacities of approximately 4 to 15 MW The total capacity awarded will be around 25 30 MW depending on the price outcomes of the competitive procurement process The tender will be conducted under the aegis of the energy regulator ARENE with EDM as offtaker The introduction of BESS as part of the tender is a new innovation for the GET FiT programme Risk Mitigation Facility Mitigating political commercial risks e g offtaker risk Viability Gap Facility Top up for costreflective tariffs to make IPP projects with new renewable energy technologies viable Grid Facility Grid Studies and Technical Assistance to ensure effective and timely connection of new IPPs to the grid Technical Assistance Facility Support and capacity building for planning and implementation of competitive procurement of renewable energy to enable an efficient and transparent investment framework based on standardized procedures and documentation Figure 28 GET FiT Mozambique Toolbox 61

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GET FiT Uganda In December 2022 the European Union announced its participation in the Programme with 20 million Euros This additional programme funding will support the second round targeting SHPs As in Zambia and Uganda the Programme s toolbox includes several instruments to support the development of the energy sector in Mozambique The German Government is also supporting the Green People s Energy for Africa This Programme includes a window for private sector led mini grid developments in Mozambique which is foreseen to be implemented under the same implementation framework as GET FiT and with FUNAE as a key stakeholder The Green People s Energy for Africa is expected to kick off in the first half of 2023 and with a funding of around EUR 23 5 million targets supplying at least 7 000 businesses and households in remote rural regions many of which will receive electricity for the first time For further information about GET FiT Mozambique please visit the website https www getfit moz org 09 Outlook Annual Report 2022 The GET FiT Uganda Programme has achieved some significant milestones since its inception in 2013 from enabling a lower risk environment for private investment to overseeing the implementation of 17 small scale renewable energy projects The job is not yet finished however and there are several outstanding issues that remain a key focus in the coming year working towards a successful conclusion for the Programme in 2024 A key priority will be to follow up the implementation of the Interconnection Component with the aim of the work being completed by the end of 2023 The project will improve power evacuation of several GET FiT projects as well as other generation projects in the region thereby substantially reducing deemed energy liabilities for GoU Resolving fish migration issues at two of the small hydropower projects also remains a clear priority We will continue to work closely with the projects and relevant agencies to find solutions that minimise risks and mitigate impacts to within acceptable levels Work will also continue under the Environmental Flow Working Group which was launched in 2021 Key activities will include reviewing and summarising lessons learned in relation to environmental flows during the implementation oversight of the 14 GET FiT supported small hydropower projects and proposing practical guidance for future handling of such flows contributing to the sustainable development and compliance monitoring of existing and future small hydropower projects and ensuring a lasting Programme impact Finally GET FiT will work towards the successful completion of the RIMS at ERA conclude the subsidy disbursement for most projects in the portfolio and continue to record lessons learned during the implementation of the Programme Although some issues will not be resolved until the successful conclusion of the Programme in 2024 its stakeholders have a lot to be proud of from its 10 years of operating in Uganda With dedicated and focussed efforts in 2023 2024 to conclude the remaining activities we now look forward to a successful Programme conclusion 62 63

GET FiT Uganda - Annual Report 2022

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