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GET FiT Premium Payment Mechanism

Eastern Africa
Grant Amount
EUR 20,000,000
Total project cost
EUR 427,600,000
Under disbursement
PFG Lead Financier

The main objective of the overall GET FiT Program is to assist East African nations in pursuing a climate resilient low carbon development path resulting in growth, poverty reduction and climate change mitigation. The roll-out of the programme has started in Uganda. In Uganda, GET FiT intends to leverage private investments into renewable energy generation projects and to fast-track a portfolio of small-scale renewable energy generation projects, promoted by private developers and with a total installed capacity of roughly 150 MW and approximately 800GWh production per year, transforming Uganda’s energy mix within a period of 3-5 years. In addition, the first grid-connected solar PV projects are to be facilitated, allowing for additional generation capacity of approximately 20 MWp/30 GWh. The programme provides technical assistance to the regulator to ensure sustainable improvements in the area of tariff modelling, project due diligence and tendering of concessions for small renewables. The revision of the standardised Power Purchase Agreements for small renewables has further added to a sustainable improvement of the investment climate in Uganda. Currently, 42,6 MW of bagasse, solar and hydro generation have been commissioned. All but one project have started construction.

The EU-AITF SE4ALL Investment Grant of EUR 20 million will be used to make small-scale renewable energy generation projects − between 1 MW and 20 MW installed capacity − financially viable. It will co-finance a Premium Payment Mechanism which will enable such projects to reach financial close and implementation. The payment of this premium will increase the regulated feed-in tariff to a sustainable level and support, in particular, the Solar Facility with the aim of introducing the first grid-connected solar PV plants to Uganda. The first solar plant has been commissioned in November 2016, a second plant is expected to be operational by mid-2017.


Press article 16.11.14 - Uganda top in attracting renewable energy investors


Link to GET Fit website