Uganda Signs Agreement With Masdar To Develop Renewable Energy

Uganda together with Zambia and Angola have signed agreements with Masdar at Abu Dhabi Sustainability Week (ADSW) 2023 to develop renewable energy projects with a combined capacity of up to 5 gigawatts (GW).

The agreements were signed under the umbrella of the Etihad 7 initiative, a UAE-led initiative that aims to raise public- and private-sector funds to invest in the development of Africa's renewable energy sector. Etihad 7 was launched at ADSW 2022 by HE Sheikh Shakhboot Nahyan Al Nahyan, Minister of State in the UAE Ministry of Foreign Affairs and International Cooperation (MoFAIC) with the aim of achieving 20 GW capacity to supply 100 million people across the continent with clean electricity by 2035.

The agreements signed under the Etihad 7 umbrella at ADSW 2023 are:

An agreement with Uganda's Ministry of Energy and Mineral Development for the development of greenfield renewable projects with a total installed capacity of 1 GW.

An agreement with Angola's Ministry of Energy and Water for the development of renewable energy projects with a total capacity of 2 GW.

An agreement with Zambia's Ministry of Energy, and Zambian national utility ZESCO Limited for the joint development of develop solar, wind, and hydroelectricity projects with a total capacity of 2 GW.

Hon Ruth Nankabirwa Ssentamu, Minister of Energy and Mineral Development, Republic of Uganda, said, "The Government of Uganda is delighted about the partnership with Masdar that will enable the addition of 1 GW of renewable energy to Uganda's generation capacity. This will go a long way to contributing to the attainment of our universal access goals and our energy transition goals. We look forward to developing this project within the agreed timeframe."

Mohamed Jameel Al Ramahi, Chief Executive Officer, Masdar, said, "As part of Masdar's new shareholding structure launched in December, we have a goal of delivering 100 GW of clean energy around the world by 2030. With Africa's massive projected development and growth and low current clean energy penetration levels, we see enormous potential for the renewable energy sector across the continent. The agreements we have signed at Abu Dhabi Sustainability Week will support these nations' clean energy goals and help to drive sustainable economic development for all four countries."

Last August, Masdar also signed an agreement with TANESCO, the sole provider of electricity in Tanzania, to develop renewable energy projects with a total capacity of up to 2 GW, also under the umbrella of the Etihad 7 program. The two parties are in the process of finalizing the establishment of a joint venture company to advance this strategic collaboration.

According to the International Renewable Energy Agency (IRENA), less than half of the Sub-Saharan African population has access to electricity. Africa also generates just 20 percent of its electricity from renewable sources. The continent has a theoretical potential capacity of approximately 850 terawatts (TW) of solar and wind, according to a report produced last year produced by Masdar and Abu Dhabi Sustainability Week with analytical support provided by McKinsey & Company.

Masdar has already established a considerable presence in Africa, having formed its Infinity Power Holding joint venture with Egypt's Infinity to target opportunities on the continent. In November, Masdar, Infinity Power and Hassan Allam Utilities signed an agreement with the Government of Egypt to develop a 10 GW onshore wind project – one of the largest wind farms in the world. The three companies are also cooperating on the development of green hydrogen projects in Egypt, targeting a combined electrolyzer capacity of 4 GW by 2030, and an output of up to 480,000 tonnes of green hydrogen per year. Masdar also has projects in Mauritania, Morocco, and the Seychelles.