Important Notice for Intending Developers of New Photovoltaic and Wind Power Projects in Uganda

The Electricity Regulatory Authority (ERA) has temporarily suspended issuance of new permits and licences for new grid-connected solar photovoltaic and wind power projects. However, ERA will prioritise the licensing of generation projects that incorporate hybrid systems and energy storage technologies that demonstrate the abilities to enhance grid stability, flexibility and support future Variable Renewable Energy (VRE) integration. These interim regulatory measures were announced through their Regulatory Notice No. 002 of 2025. 

These measures are premised on the fact that the national grid’s technical capacity to integrate additional grid-connected solar and wind projects has been fully committed through the existing licences and permits already issued. ERA argues that any further addition of VRE in the absence of enabling measures would pose a risk to the stability and reliability of the electricity system. To that end, to address the grid’s technical capacity constraints in integrating additional solar and wind projects, a comprehensive grid stability study is being undertaken by Uganda Electricity Transmission Company Limited (UETCL) the System Operator in coordination with ERA. The study is to determine future VRE integration capacity thresholds at both transmission and distribution levels together with the assessment of the applicability of enabling technologies such as hybrid systems and energy storage solutions. 

This notwithstanding, licensing of off-grid renewable energy projects remains unaffected and will continue to be processed in accordance with the applicable laws and regulatory framework. ERA encourages investment in base-load generation technologies such as large hydro, geothermal and nuclear power to support long term VRE integration without compromising grid stability. 

These interim regulatory measures will remain in force until the completion of the grid stability study being undertaken. It is until this study is concluded that we will know of the next steps, regarding grid-connected solar and wind power projects. ERA pledges to issue further guidance thereafter.

In conclusion, with these temporary measures in place, ERA remains committed to its statutory duty of ensuring the continuity and reliability of electricity supply in Uganda while promoting private sector investment. Private investment is still required in the growth of the sector. And perhaps, now is the time to leverage on different technologies best suited to enhance efficiency. 

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