The Electricity Regulatory Authority (ERA) has published Regulatory Notice No. 002 of 2025, announcing interim licensing measures for grid-connected solar photovoltaic (PV) and wind power projects. The new measures, issued under Section 9 of the Electricity Act, Cap. 157, are intended to ensure the stability, reliability, and security of Uganda’s national electricity grid, while maintaining ERA’s commitment to facilitating private sector participation and investment in renewable energy.
Background
Uganda’s renewable energy sector continues to attract substantial investment interest. To date, the Authority has licensed and permitted approximately 239 MW of Variable Renewable Energy (VRE) capacity — including nine projects (124 MW) that are operational or nearing completion, and six projects (115 MW) under feasibility development.
Following a recent increase of approximately 50 MW in peak system demand, and based on technical studies by the System Operator, the firm grid absorption ceiling for VRE has been revised from 250 MW to 200 MW. This adjustment ensures continued reliability in the national electricity supply.
As of August 2025, the grid’s technical capacity to accommodate additional grid-connected solar and wind projects has been fully committed through existing licences and permits. Adding more capacity without supportive technologies could compromise grid stability.
Interim Regulatory Measures
Pending completion of a comprehensive Grid Stability Study being undertaken by the System Operator in coordination with ERA, the following interim measures have been instituted:
- Temporary pause to New Licences and Permits:
The processing and issuance of new permits and licences for grid-connected solar PV and wind projects will be temporarily paused. - Priority for Hybrid and Storage-Based Projects:
ERA will prioritise projects that incorporate hybrid systems or energy storage technologies, where these demonstrably enhance grid flexibility and reliability. - Off-Grid Projects Unaffected:
Licensing of off-grid renewable energy projects remains unaffected and will continue under the existing legal and regulatory framework. - Encouragement of Base Generation Investments:
Investors are encouraged to explore base-load generation technologies, such as large hydro, geothermal, and nuclear, which will support long-term renewable energy integration without compromising grid performance.
Next Steps
ERA and the System Operator are conducting a detailed Grid Stability Study to establish new VRE integration thresholds and assess enabling technologies such as energy storage, hybrid systems, and smart grid infrastructure.
Upon completion of this study, ERA will issue further regulatory guidance to inform investors and the public.
ERA’s Commitment to a Balanced Energy Transition
Speaking on the development, Eng. Ziria Tibalwa Waako, the Chief Executive Officer of ERA, reaffirmed the Authority’s commitment to ensuring both system reliability and investment growth:
“These interim measures are a proactive step to safeguard the integrity of Uganda’s electricity grid while paving the way for greater renewable energy integration in the future. ERA remains committed to a balanced and sustainable energy transition that supports national development goals and private sector participation.”
For further information, please contact:
The Directorate of Corporate & Consumer Affairs
Electricity Regulatory Authority (ERA)
ERA House, Plot 5C–1, Industrial Area – Lugogo, Kampala
Tel: +256 414 341 852 / 341 855
Email: info@era.go.ug
Website: www.era.go.ug