Power Sector Transition in East Africa (EACOP region) – Global Insights and Opportunities
The nations of East Africa have long grappled with the dual challenges of energy poverty and climate change. Yet, as the region embarks on an ambitious energy transition, renewable energy technologies are poised to play a pivotal role in powering economic growth and sustainable development.
Renewable Energy Landscape
Despite their limited contributions to global emissions, countries in the East African Crude Oil Pipeline (EACOP) region are acutely aware of the threats posed by climate change. In Uganda, for example, over 90% of survey respondents believe their communities are already feeling the effects. This heightened awareness has spurred governments to pursue bold renewable energy targets.
Solar Power Potential
Across the region, solar power has emerged as a key driver of the energy transition. Uganda has seen a rapid rise in solar home systems and large-scale projects, now accounting for over 30% of its total installed capacity. Tanzania, meanwhile, boasts exceptional solar resources, with global horizontal radiance ranging from 4-7 kWh/m²/day. The country aims to reach 6,000 MW of renewables by 2025, with solar playing a central role.
Hydropower Developments
Hydropower has long been a mainstay of the region’s energy mix, but climate change-induced droughts have threatened its reliability. Nevertheless, countries are investing in new hydropower projects to bolster energy security. Tanzania, for instance, is developing the Rusumo and Kakano hydropower plants, which will be connected to the national grid via the Kagera Power Transmission Line.
Geothermal Energy Utilization
The East African Rift System harbors immense geothermal energy potential, estimated at 15,000 MW. Uganda, the Democratic Republic of Congo, and Tanzania are situated atop the western branch of the Rift, presenting opportunities to harness this renewable resource. Regulatory clarity, financing, and capacity-building efforts will be crucial to realizing this untapped potential.
Electricity Grid Modernization
Upgrading the region’s aging electricity infrastructure is a critical component of the energy transition. Governments are pursuing ambitious grid expansion and interconnectivity projects to enhance energy access and enable cross-border electricity trade.
Grid Expansion and Interconnectivity
Tanzania, for example, plans to add over 7,000 km of high-voltage transmission lines by 2030, including the Tanzania-Zambia Interconnector. Similarly, Uganda and South Sudan are constructing a 308-km, 400-kV transmission line to increase cross-border power exchange. These investments will bolster grid resilience and support the integration of variable renewable sources.
Smart Grid Technologies
Innovative smart grid technologies, such as advanced metering infrastructure and distribution automation, are also gaining traction. In Uganda, the “Utilities 2.0” initiative is fostering collaboration between utilities and private mini-grid developers to enhance grid reliability and facilitate renewable integration.
Energy Storage Solutions
As renewable energy deployment accelerates, energy storage will play a pivotal role in grid balancing and providing reliable, around-the-clock power. Countries in the region are exploring various storage technologies, from lithium-ion batteries to hydrogen-based systems, to address their unique energy needs.
Policy and Regulatory Framework
Supportive policy and regulatory frameworks are essential for driving the energy transition in East Africa. Governments are aligning their national energy strategies with global climate goals and implementing targeted mechanisms to incentivize renewable energy investment.
National Energy Policies
Uganda’s recently announced Energy Transition Plan sets out a comprehensive roadmap to achieve universal energy access by 2030 and net-zero emissions by 2065. Tanzania, too, has established a 2025 renewable energy target of 6,000 MW, underpinned by its National Energy Policy.
Regional Cooperation Initiatives
At the regional level, the East African Community has established the East African Centre of Excellence for Renewable Energy and Energy Efficiency (EACREEE) to facilitate knowledge-sharing and harmonize regulatory frameworks. The Eastern Africa Power Pool (EAPP) also coordinates cross-border electricity trade and grid interconnection.
Sustainable Energy Targets
Countries in the EACOP region have set ambitious targets for renewable energy and emissions reductions. Uganda, for instance, aims to increase its renewable capacity to 52 GW by 2040, while the Democratic Republic of Congo has pledged a 21% emissions reduction by 2030.
Investment and Financing Opportunities
Attracting the necessary capital to fund the region’s energy transition remains a significant challenge. However, a diverse range of financing mechanisms and public-private collaborations are emerging to bridge the investment gap.
Private Sector Involvement
The private sector is playing an increasingly active role in East Africa’s renewable energy deployment. Companies like Greenlight Planet, M-KOPA, and Engie Energy Access are driving the expansion of solar home systems and mini-grids, particularly in rural areas.
Development Bank Funding
Multilateral development banks, such as the World Bank and African Development Bank, are providing concessional financing and technical assistance to support renewable energy projects. Initiatives like the Universal Energy Facility and the Tanzania Rural Electrification Expansion Project are bolstering energy access and infrastructure.
Green Energy Incentives
Governments are also implementing various incentives to attract green energy investments, including feed-in tariffs, reverse auctions, and public-private partnerships. Uganda’s GET FiT program, for example, has successfully contracted over 150 MW of small-scale renewable energy projects.
As East Africa embraces its energy transition, the region’s vast renewable energy potential, coupled with innovative financing mechanisms and supportive policies, hold immense promise. By harnessing these opportunities, the nations of the EACOP region can chart a sustainable path forward, tackling energy poverty, climate change, and economic development in tandem. To learn more about the European Future Energy Forum’s efforts to support the global energy transition, please visit europeanfutureenergyforum.com.
