Uganda’s energy project secures $19 million EAIF investment
Uganda has secured $19 million in funding from the Emerging Africa Infrastructure Fund (EAIF) for a new 20MW solar PV project in northwest Uganda to provide clean, affordable energy for households in underserved regions.
The commitment was finalized at COP28 in the United Arab Emirates city of Dubai on November 30, aligning with the United Nations' Sustainable Development Goals 7 and 13, focusing on affordable and clean energy, as well as climate action, EAIF announced.
The Ituka power plant project, a 24MWp/20MWac solar PV power plant in Ombachi, northwest Uganda, will deliver climate impact in the region by reducing reliance on costly and polluting thermal power used in the West Nile region.
The funding will cover the technical and financial challenges of the project and position it to transform local communities, EAIF announced.
Uganda faces a significant challenge with one of the lowest rates of electricity access in sub-Saharan Africa. Among the regions in urgent need of improved infrastructure, the West Nile region stands out. The demand for electricity in this area is estimated to be between 13-15 megawatts (MW), yet the current supply falls below 7MW.
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In 2024, the project aims to connect the region to the national grid for the first time, helping communities and businesses dealing with frequent load shedding and blackouts to become more productive.
The Emerging Africa Infrastructure Fund (EAIF) was established as the first company within the Private Infrastructure Development Group (PIDG). It provides long-term commercial debt to deliver inclusive and impactful infrastructure projects in Africa. EAIF has been here before. It financed the 10MW Tororo Solar PV plant and the 10MW Soroti solar plant which are already operational and collectively serving around 159,000 people and their communities in Uganda.
The Ituka power plant is a step towards the Uganda government’s Vision 2040 of reducing dependence on hydropower and diversifying its energy sector.
Based on a 20-year Power Purchase Agreement (PPA), the project will sell power to Uganda Electricity Transmission Company Limited.
“We are excited to partner with AMEA Power to develop the Ituka power plant and bring the communities of West Nile affordable access to clean energy, enabling them to thrive and reducing dependence on expensive, carbon-intensive HFO power,” said Paromita Chatterjee, Director at Ninety-One, the Fund Manager of EAIF.
