The Ugandan government is seeking increased private sector investment in solar power and energy storage systems to meet the country's rising electricity demand and achieve universal access to electricity by 2030. Dr. Brian Isabirye, Commissioner for Energy Resources at the Ministry of Energy and Mineral Development, emphasized the critical role of private investment in expanding generation, improving reliability, and lowering electricity costs for households and industries.
Speaking at the Partner Summit 2026, Isabirye highlighted the growing importance of solar energy and battery storage in Uganda's energy transition. He noted that the private sector provides the necessary investments, technology, and skills to translate government energy policies into practical projects. Isabirye acknowledged Huawei's technical support in developing Uganda's sustainable energy programs, particularly in incorporating technologies such as inverters and energy storage into national planning.
Uganda's installed electricity generation capacity has grown in recent years, with hydropower being the dominant source, accounting for about 95% of the country's installed generation capacity. The 600-megawatt Karuma Hydropower Project is a significant addition to Uganda's generation capacity. However, Isabirye warned that increased generation should not create the impression that Uganda has more electricity than it needs, as peak demand currently stands at about 1,000 megawatts and is expected to continue rising.
The country's electricity tariffs have declined, with the average tariff falling from about Shs 460 to Shs 395 per unit in 2025. The reduction was deliberate, particularly for industrial consumers, to attract investment and make Ugandan products more competitive. Isabirye stated that the government aims to ensure that industries are attracted and productivity is increased, leading to the production of competitive products.
Despite the growth in electricity access, with about 2.5 million consumers and an annual growth rate of approximately 10%, challenges persist in the electricity sector, including reliability, distribution losses, and affordability. Frequent power outages and voltage fluctuations have led institutions and businesses to install solar systems and backup generators. Distribution losses remain a major concern, with over 18% of electricity lost at the distribution level.
To address these challenges, the government is targeting electricity prices of about five US cents per unit, making power more competitive for industries. Isabirye emphasized that the energy sector requires about $8 billion in investment annually by the end of the decade, making private capital indispensable. He noted that Uganda's favorable solar resource provides an opportunity to expand solar generation and battery storage as complementary sources to the national grid.
Isabirye highlighted Uganda's strong sunshine throughout the year, with the International Energy Agency assessing that the country has a stronger solar resource than Spain. He emphasized that solar and battery storage can complement the national grid, cut energy costs, and keep operations running during outages. This would enable Uganda to make better use of its electricity infrastructure while expanding access to reliable and affordable power.
Key points
- The Ugandan government seeks $8 billion in annual investment by the end of the decade to expand its energy sector.
- Uganda aims to achieve universal access to electricity by 2030.
- The country's peak electricity demand is expected to continue rising as industrialization and economic activity expand.
