Gridworks to deliver Mbale-Bulambuli-Kween transmission project in Uganda

Gridworks has entered into a Joint Development Agreement with the Government of Uganda to deliver the Mbale-Bulambuli-Kween transmission line in eastern Uganda, which will boost the uptake of more renewable power in the country.

Gridworks, a subsidiary of British International Investment, the UK’s development finance institution and impact investor, will develop the transmission line as a privately financed Independent Power Transmission (IPT) project. This is the second IPT in Uganda that Gridworks is developing.

It will support Uganda in meeting its climate targets, as well as the country’s economic development, industrialisation, and energy access goals.

The new infrastructure includes almost 80km of high-voltage transmission lines and two new substations allowing the evacuation of up to 250 MW of renewable generation in the Mount Elgon area onto the national grid. This includes up to 100MW from existing and planned hydropower plants and 150MW of power from a new solar park near Bulambuli.

Industrial growth: The project will deliver reliable power to the industries located in the Mbale region including a key industrial park.

Climate benefits: Unlocking renewable generation for the grid. The project will unlock at least 15 hydro-power plants with around 100MW of capacity, the development of which has been halted pending the commissioning of the line. It will also facilitate the planned 150MW solar park project to be developed by Masdar.

Energy access: The project will improve power supply to the growing population in Bulambuli, Kween and the wider Mount Elgon region. According to the World Bank, only 47% of Uganda’s population currently has access to electricity.

Market shaping: This is one of the first greenfield privately financed transmission projects in Uganda and sets a precedent for more much-needed private investment in the electricity sector.

Loss reduction: The new infrastructure will reduce evacuation losses for existing hydropower plants.

Support for Uganda’s public finances: Without Gridworks’ private sector investment structure, the Government of Uganda would have had to borrow to finance the transmission line.

A dedicated investor in Africa’s electricity transmission and distribution sector, Gridworks is developing a series of ground-breaking projects to bring clean, affordable and reliable power to Africa’s people and its businesses. These include:

Amari Power Transmission: One of Africa’s first privately financed transmission projects, Amari is an independent transmission project in Uganda that will upgrade four key substations on the grid.

Chimuara-Nacala Transmission Project: Aimed at strengthening and increasing the reliability of the transmission infrastructure connecting central and northern regions of Mozambique.

Anzana Electric Group: An African utility that develops, invests & operates distributed renewable power generation and grid distribution projects bringing reliable, low-cost power to rural communities across southern and eastern Africa.

Moyi Power: An ambitious program to build greenfield, solar-powered utilities providing electricity to a million people in three isolated cities in northern DRC.

Investment in transmission infrastructure and grid stability will play a critical role globally in delivering the clean energy transition by supporting an increased percentage of renewables in the generation mix and connecting areas of high renewable generation potential with areas of high electricity demand.

New and upgraded transmission infrastructure in Africa, which currently lacks wide grid coverage, will also deliver much-needed improvements in access to electricity for households and businesses. IPTs are a new asset class in Africa. Gridworks and others expect the market will develop in a way comparable to the Independent Power Production market, which is now well established and regulated across the continent.

Chris Flavin, Gridworks’ Interim CEO, said: “The Mbale-Bulambuli-Kween project will enable the evacuation of hundreds of MWs of renewable power to customers in the east of Uganda. It will boost economic growth by helping deliver more power to industry and will increase energy access for households. I’m delighted that Gridworks is demonstrating that private sector investment can play an important part in the growth of Africa’s electricity networks. Project development in the transmission sector requires specialised skills and expertise, and we are delighted to be working to deliver practical solutions to Africa’s energy challenges.”

Ruth Nankabirwa, Uganda’s Minister of Energy and Mineral Development welcomed the agreement and said:

“The 132 kV Mbale-Bulambuli-Kween transmission line is a critical infrastructure project that will drive industrialisation and expand electrification in line with Uganda’s Third National Development Plan (NDP III) and forthcoming NDP IV. This project is also a key component of our Energy Policy & Grid Development Plan and will address the current bottlenecks in power evacuation on the eastern part of the Ugandan grid. We are therefore delighted to partner once again with Gridworks to deliver this transformative initiative, which will contribute significantly to Uganda’s socio-economic development.”

Chris Chijiutomi, Managing Director and Head of Africa at British International Investment, said:“As one of the few dedicated Africa focused investors in power transmission, we are pleased to see Gridworks playing its role as an important partner in helping to deliver on the potential of Africa’s renewable power sector. This investment will unlock access to green and affordable electricity for the people of Uganda.”