Uganda Poised to Enter Regional Electricity Market, But Infrastructure Challenges Loom

Uganda is set to enter the regional electricity market by November next year, but the country’s transmission company has expressed concerns over the lack of essential supporting infrastructure. The Uganda Electricity Transmission Company Limited (UETCL) has emphasized the critical need for infrastructure to facilitate seamless electricity exchange among neighboring countries.

According to Jenkins Miiro, a representative from UETCL, the primary obstacle to cross-border electricity trade is the inadequate supporting infrastructure. Despite this challenge, Miiro emphasized that interconnected countries will still be able to engage in electricity trade. Uganda’s surplus power, which accounts for 97% of the country’s electricity generation, is seen as a pivotal advantage in regional trade discussions.

Uganda is currently engaged in studies to interconnect with several neighboring countries, including South Sudan, Democratic Republic of Congo (DRC), Tanzania, and Rwanda. The country’s renewable energy consultant, Eng. Willy Kiryahika, stressed the importance of government investment in renewable energy infrastructure to capitalize on the potential of regional electricity trade.

The concept of ‘wheeling,’ where Uganda could utilize its transmission network to transport electricity to neighboring countries and charge a transmission fee, was highlighted as a potential strategy to capitalize on the surplus power. However, the development of robust supporting infrastructure is crucial for the operationalization of cross-border electricity trade and maximizing Uganda’s renewable energy potential on the international stage.

As Uganda prepares to enter the regional electricity market, the spotlight remains on the country’s ability to overcome infrastructure hurdles and emerge as a powerhouse in the regional energy landscape.