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According to ESMAP, Mini grids are electric power generation and distribution systems that provide electricity to just a few customers in a remote settlement or bring power to hundreds of thousands of customers in a town or city.
They can be fully isolated from the main grid or connected to it but able to intentionally isolate (“island”) themselves from the grid. Mini grids supply power to households, businesses, public institutions, and anchor clients, such as telecom towers and large agricultural processing facilities. They are designed to provide high-quality, reliable electricity. A new, “third generation” of mini grids has recently emerged.
They incorporate the latest technologies, such as smart meters and remote monitoring systems; and are typically designed to interconnect with the main grid
Mini-grids in Uganda are regulated under the Electricity (isolated grid systems) Regulations, 2020. The regulation can be downloaded from the Electricity Regulatory Authority (ERA) website
Developers intending to set-up mini-grid projects where the generation capacity does not exceed 2 megawatts (MW) apply to ERA for an exemption from the requirement to hold a license for the generation distribution or sale of electricity.
Unpublished information from Ministry of Energy and Mineral Development (MEMD) shows that Uganda has 46 mini-grids by June 2024.
According to unpublished data from Ministry of Energy and Mineral Development (MEMD), there are currently 11 licensed private companies that are operating mini-grids in Uganda. These include NOA Uganda, Equatorial Power Ltd, Engie Energy Access, Mandulis Energy Ltd, Sagewood Ltd, NRECA International, Kalangala Infrastructure Services Ltd, Solargen Ventures (U) Limited, Absolute Energy Ltd, former KRECS not taken over by UEDCL, and Pamoja Energy Ltd.
In terms of current market share (focusing on installed sites to date), NOA Uganda can be seen as the leading market player. However, other private companies like Equatorial Power and Mandulis Energy continue to develop new mini-grids in addition to their already existing portfolios.
The Ministry of Energy has prepared a National Electrification Strategy which includes a total of 2, 712 potential mini-grid sites available for development.
The National Electrification Strategy (NES) can be found on the MEMD website under the GIS unit.
However, developers must get written confirmation from the MEMD regarding the available sites.