How Uganda’s electricity exports surged to $184.7 million in five years

Uganda’s electricity exports have seen explosive growth over the last five years, with total earnings hitting $184.7 million (Shs655 billion) from 1.95 million megawatts per hour exported between June 2020 and June 2024.

The Bank of Uganda revealed this 43% surge in export volumes, marking a major step forward in the country’s regional energy presence.

Revenue from electricity exports soared from $21 million (Shs75.6 billion) in June 2020 to an impressive $48.8 million (Shs175 billion) by June 2024. The upward trend is largely credited to rising demand in East African countries like Kenya, which heavily relies on Uganda’s power supply.

Similarly, Uganda has tapped into the growing needs of the Democratic Republic of Congo (DRC), bolstered by the Mbarara-Mirama 220kV transmission line, which has expanded connectivity and facilitated cross-border energy flows.

Driving factors behind the growth

Dr. Patricia Litho, Assistant Commissioner of Communication and Information Management at the Ministry of Energy, attributes Uganda’s success in the electricity export market to strategic infrastructure investments, targeted government policies, and a focus on meeting regional demand.

“Government is prioritizing cross-border transmission lines,” she explained. “Plans are also in place to build a transmission line to Nimule, opening the door to a new market in South Sudan.”

With substantial investments in the East African Power Pool, Uganda is leveraging its excess energy production to become a reliable supplier across borders. Participation in the Power Pool has allowed Uganda to not only address regional power shortages but also to stabilize its own electricity sector by exporting surplus capacity.

The country’s installed capacity has grown by 67% since 2019, now totaling 2,048.1 megawatts as of June 2024. The sector’s resilience and ability to meet domestic and export needs are largely due to a commitment to renewable energy, which makes up 95% of Uganda’s electricity generation. Notably, the Karuma Hydroelectric Power Plant, commissioned recently, has added a substantial 600 megawatts to the national grid.

This rapid expansion in capacity has enabled Uganda to supply cleaner and more reliable power both domestically and across its borders. Renewable energy projects are a cornerstone of Uganda’s energy strategy, with the government pushing to achieve sustainable growth through hydropower, solar, and other renewable sources.

Electricity exports have not only strengthened Uganda’s economy but are also poised to play a vital role in its ambitious industrialization goals. The World Bank and government forecasts project that economic growth could exceed 7% in the 2024/25 fiscal year, with the electricity sub-sector expected to be a major driver. By supplying energy to neighboring countries, Uganda is bolstering its trade portfolio while creating a stable revenue stream that fuels domestic development.

As the government prioritizes infrastructure projects and strengthens ties within the East African Power Pool, Uganda’s electricity export market shows no signs of slowing down. By building more transmission lines, expanding renewable energy projects, and capitalizing on regional demand, Uganda is positioning itself as a regional energy powerhouse.

Key Statistics:

• 43% increase in electricity exports over the past five years.
• $184.7 million (Shs655 billion) earned in export revenue.
• 95 million megawatts per hour exported from June 2020 to June 2024.
• 67% growth in installed capacity since 2019.
• 95% of total electricity generation from renewable energy sources.