Uganda poised to benefit from COMESA electricity trade initiative

KAMPALA, November 27, 2024 – Uganda is set to gain from a lucrative electricity trade deal involving at least 15 countries through the Eastern Africa Power Pool [EAPP], an intergovernmental initiative aimed at fostering regional energy cooperation.

This initiative seeks to coordinate and develop a regional power grid and facilitate cross-border electricity trade within Eastern Africa. The initiative is expected to operationalise a competitive regional power market by January 2025, which will help alleviate energy shortages across the region.

The ambitious plan aims to harness surplus electricity from countries with excess production and distribute it to nations experiencing energy deficits, thereby enhancing energy access and reliability throughout the region.

Launched in 2005 under the auspices of the Common Market for Eastern and Southern Africa [COMESA], the initiative currently includes Uganda, Kenya, Tanzania, Burundi, Djibouti, the Democratic Republic of Congo, Rwanda, Egypt, Ethiopia, Sudan, and Libya. Recent additions to the initiative include South Sudan and Somalia, with Eritrea also expressing interest. The market and trading units for this initiative were recently endorsed in Kampala.

Ruth Nankabirwa, Uganda’s Minister of Energy and Mineral Development and the current Chairperson of EAPP, emphasised the importance of leveraging existing infrastructure to advance regional trade. “We will utilize the available electricity transmission infrastructure to enhance regional trade within EAPP,” she noted.

James Wahogo, the General Secretary of EAPP, highlighted the strategic significance of the initiative, stating, “We are working towards the operationalization of a competitive market next year, driven by market and trade units within the block. Countries with surplus electricity can offer that power for sale to EAPP member states.”

The upcoming market will rely on power purchase agreements [PPAs] to determine pricing, ensuring transparency and fairness in transactions.

Currently, Uganda exports at least 150 megawatt-hours [MWh] of electricity to East African Community member states, including Rwanda, Tanzania, and Kenya. This export is expected to increase with the completion of the Karuma Dam, which will add 650 MW to Uganda’s energy capacity.

According to the World Bank, over 600 million people in Africa lack access to electricity, with Eastern Africa accounting for a significant portion of this figure. By facilitating the transfer of surplus electricity from energy-rich countries to those in need, the EAPP’s regional power trade initiative is poised to reduce this gap and provide reliable electricity to millions of households and businesses across the region.

The United Nations’ Sustainable Development Goal 7 [SDG 7] aims to ensure access to affordable, reliable, sustainable, and modern energy for all by 2030. The EAPP’s regional power trade initiative is a significant step toward achieving this goal in Eastern Africa.

https://thecooperator.news/energy-experts-call-for-enhanced-electricity-regulations-in-comesa/

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