ABOUT UGANDA ENERGY'S SECTOR

Oil, Gas and Petroleum Sector

Uganda’s oil, gas, and petroleum sector are undergoing transformation, driven by the discovery of significant reserves in the Albertine Graben region and advancements in petroleum product development.

Uganda’s recoverable oil reserves are estimated at 1.4 billion barrels, with production potential of up to 230,000 barrels per day once operations commence fully. 

Key infrastructure developments include the Tilenga and Kingfisher projects, led by Total Energies and CNOOC, which are advancing steadily, and the East African Crude Oil Pipeline (EACOP), a 1,443 km pipeline under construction to transport crude oil to the Tanzanian port of Tanga for export. The Refinery project is also on track to boost commercial production. 

This sector is poised to significantly contribute to GDP, foreign direct investment (FDI), and job creation, with revenues earmarked for infrastructure and social services. Strong governance through the Petroleum Authority of Uganda (PAU) and the Ministry of Energy and Mineral Development ensures oversight and adherence to environmental, social, and governance (ESG) standards.

A key focus is on maximizing opportunities for Ugandans in employment, procurement, and capacity building, with partnerships with local companies encouraged to support economic growth. However, balancing environmental conservation with development remains a critical issue, especially in biodiversity-sensitive areas. Regional collaboration and adherence to global energy transition goals present opportunities for sustainable growth.

Uganda has launched an Energy Transition Plan to harmonize its oil and gas ambitions with renewable energy development and climate goals. The sector is on track to achieve first oil by 2025, marking a significant milestone in Uganda’s journey to becoming a key player in the global energy market.

Electricity sector 

Uganda’s electricity sector is characterized by significant growth in generation capacity and ongoing challenges in matching consumption due to low demand and limited grid connectivity. 

The country has an installed electricity generation capacity of approximately 1,400 MW, primarily from hydropower, which accounts for over 80% of the supply. 

Major hydropower stations include the Karuma Hydropower Plant (600 MW, commissioned in 2024), the Isimba Hydropower Plant (183 MW), and the Nalubaale-Kiira Complex (380 MW combined). 

Additionally, Uganda has made investments in solar power and thermal plants, though these contribute a smaller share of the energy mix.

Despite the growth in generation capacity, electricity consumption remains low due to limited grid connectivity and affordability challenges. Per capita electricity consumption is estimated at 215 kWh/year, which is below the global average. Only about 57% of households have access to electricity, with rural areas lagging far behind urban regions.

Uganda’s electricity grid is expanding, but losses in transmission and distribution remain a concern, averaging around 18%. The government is investing in extending the grid and reducing these losses to improve efficiency and reliability.

Peak demand stands at around 750 MW, meaning Uganda currently has a surplus in generation capacity. This surplus has led to fixed costs for unused electricity, affecting the financial viability of the sector. Efforts are underway to stimulate industrial demand and enhance export opportunities to neighboring countries.

Currently, Uganda exports electricity to Kenya, Rwanda, Tanzania, South Sudan, and the Democratic Republic of Congo, with ongoing efforts to strengthen regional interconnection through the East African Power Pool (EAPP).

The government is focused on increasing access to affordable electricity, stimulating industrial growth, and incorporating renewable energy sources into the grid. Ambitious rural electrification programs and mini-grid developments aim to bridge the access gap and support Uganda’s development goals under Vision 2040.

Uganda’s electricity sector is positioned for growth, but overcoming demand-side constraints and improving access remain critical priorities.

Solar Energy  

Uganda’s solar sector is rapidly growing, driven by increasing demand for off-grid solutions and a shift towards renewable energy. Uganda’s total installed solar capacity is estimated at around 450 MW, contributing approximately 5-7% of the country’s total electricity mix. 

A significant portion of solar installations is focused on off-grid solutions, particularly in rural areas where access to the national grid remains limited. Over 1.5 million solar home systems have been installed, benefiting households, schools, and healthcare facilities in remote regions.

Uganda has developed several mini-grid systems, especially in areas far from the main grid, providing power to over 300,000 people in rural communities. The government has prioritized the expansion of mini-grids as part of its rural electrification strategy.

Uganda benefits from abundant solar resources, with average solar radiation levels around 4.5 to 6.5 kWh/m²/day, making solar energy highly viable. The Albertine Rift, Karamoja, and other rural areas have significant solar potential due to low population density and high solar irradiance.

The government has implemented policies to promote solar energy, including tax incentives for solar equipment, feed-in tariffs, and supportive regulatory frameworks. The Renewable Energy Policy (2019) aims to increase the share of renewable energy to at least 30% by 2030, focusing heavily on solar.

The high upfront costs of solar systems remain a barrier, particularly for low-income households, though financing options are improving. Emerging opportunities include large-scale solar power plants, energy storage systems, and solar-powered irrigation, which can boost agricultural productivity.

Overall, Uganda’s solar capabilities are expanding, driven by government initiatives, increasing access to off-grid solutions, and abundant solar resources. However, addressing financial barriers and improving storage solutions remain key areas for growth. 

Geothermal Energy 

Uganda’s geothermal energy sector is in the early stages of development, with significant potential for future growth. The country’s geothermal resources are estimated at approximately 1,500 MW, primarily located in the Albertine Rift region, including areas such as Katwe-Kikorongo, Buranga, Kibiro, and Panyimur. 

Despite this substantial potential, Uganda currently lacks operational geothermal power plants. Exploration activities have been ongoing since 1993.

The Renewable Energy Policy of Uganda set targets for geothermal development, aiming for an installed capacity of 25 MW by 2012 and 45 MW by 2017. However, these targets have not been met. 

Therefore, ongoing exploration and future investments are essential to harness this resource effectively. 

Wind Energy 

Wind energy is an emerging component of Uganda’s renewable energy landscape, with several initiatives underway to harness its potential. 

The largest operational wind farm in Uganda is the Masaka Wind Farm, located in the Masaka District. This facility comprises six turbines with a combined capacity of 51 MW, contributing to the country’s electricity supply. 

In addition to the Masaka Wind Farm, Uganda is exploring further wind energy projects both locally and beyond. 

Despite these developments, assessments indicate that Uganda’s wind energy prospects are currently limited. Studies suggest that the potential for large-scale wind energy generation is low, primarily due to insufficient wind measurements and variability in wind patterns across the country which calls for initiatives to promote the development and sound management of wind power resources.