Uganda has approved the development of a major utility-scale solar-plus-storage project: a 100-megawatt-peak (MWp) photovoltaic (PV) plant paired with 250 megawatt-hours (MWh) of battery energy storage (BESS). The project will be delivered by US-based clean energy company Energy America, working through its East Africa subsidiary, EA Astrovolt.
The government’s approval, issued as a Gazetted Policy Direction under the Electricity Act, identifies Kapeeka Sub-County in Nakaseke District as the project site. Officials describe this as Phase One of a national initiative to install 1 gigawatt (GW) of solar-plus-storage capacity, marking a strategic shift in Uganda’s generation mix.
Project Details and Developers
Energy America is a US-headquartered solar-module manufacturer and integrated EPC (engineering, procurement, and construction) company. Its Nairobi-based subsidiary, EA Astrovolt, will serve as the regional developer and implementer.
The project will undergo detailed feasibility studies, after which Uganda’s Electricity Regulatory Authority (ERA) will set the tariff. A Power Purchase Agreement (PPA) will then be negotiated with the Uganda Electricity Transmission Company Limited (UETCL).
According to company statements, the project will prioritise local job creation, skills transfer, and local content engagement. These commitments are aligned with Uganda’s broader industrial development goals and are designed to ensure that communities benefit beyond just the electricity supply.
Why It Matters for Uganda’s Energy Future
Uganda’s power system is heavily reliant on hydropower, which accounts for the majority of installed capacity. While hydropower is renewable, it is vulnerable to seasonal rainfall fluctuations and climate-related droughts. This leaves the grid exposed to reliability issues during dry spells.
A 100 MWp solar facility combined with 250 MWh of battery storage adds more than just generation capacity; it adds resilience. Storage allows excess solar energy generated during the day to be stored and dispatched during evening peaks or cloudy periods. This helps smooth out supply fluctuations, reduce dependence on hydropower during low-water seasons, and provide fast-response services such as frequency regulation and voltage control.
The project also aligns with Vision 2040 and Uganda’s National Energy Policy 2023, both of which emphasise diversifying the energy mix, expanding grid stability, and increasing access to affordable electricity.
Expected Energy Output
Uganda enjoys high solar yields, with studies showing specific outputs between 1,400 and 1,670 kilowatt-hours (kWh) per kilowatt-peak (kWp) installed annually.
For a 100 MWp system, this translates to 140–167 gigawatt-hours (GWh) of electricity per year.
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Given Uganda’s current per-capita electricity consumption of roughly 80 kWh annually, and an average household size of 4.4 people, a typical home consumes about 352 kWh per year. This means the plant’s annual generation could theoretically power 398,000–474,000 households though in reality, distribution will depend on transmission capacity, demand locations, and grid connection projects.
Grid and National Impact
Uganda’s installed electricity generation capacity recently passed the 2,000 MW mark. However, the grid still struggles with low access rates: just over 57% of the population has access to electricity, with rural areas lagging far behind urban centres.
By adding dispatchable renewable power, the Energy America project will help reduce load-shedding risks, support industrial expansion, and make it easier to integrate new connections without overloading existing hydropower plants.
The government views this as a flagship project that will demonstrate the viability of large-scale solar-plus-storage in East Africa, paving the way for similar developments under the planned 1 GW national rollout.
Financing and Partnerships
The project’s backers are exploring financing options that may involve US export-credit agencies, such as the Export-Import Bank of the United States (EXIM) and the US International Development Finance Corporation (DFC).
Energy America’s internal divisions, including Ganymede (EPC services) and Centauri (technology solutions), will provide engineering, procurement, and technical integration support.
EA Astrovolt will lead on-the-ground execution, working closely with Ugandan authorities during the feasibility and permitting stages. Once ERA finalises the tariff and the PPA is signed, the project will move toward financial close and construction.
Challenges and Risks
While the approval is a major milestone, several uncertainties remain:
- Tariff Determination: ERA’s decision on the electricity purchase price will directly affect the project’s financial viability.
- PPA Negotiations: Terms must be bankable to secure financing.
- Land and Environmental Concerns: The Nakaseke site will require community consultations, environmental impact assessments, and potential resettlement arrangements.
- Supply Chain Logistics: Importing PV modules, inverters, and battery systems requires careful scheduling to avoid delays and cost overruns.
- Local Content Execution: While the developer has pledged skills transfer and local engagement, the actual level of local manufacturing or supply chain participation is still unclear.
Strategic Significance for Investors and Policymakers
If successful, this project will serve as a proof-of-concept for large-scale solar-plus-storage deployment in the region. Uganda could become a model market for similar projects in neighbouring countries, attracting further private capital into East Africa’s renewable sector.
For policymakers, the project illustrates how combining generation with storage can address both supply adequacy and grid flexibility, a crucial step in meeting rising electricity demand while keeping emissions low.
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The Energy America / EA Astrovolt solar-plus-storage project in Nakaseke is both technically ambitious and symbolically important. It represents a tangible shift toward modern, resilient energy infrastructure in Uganda.
While regulatory approvals and financing arrangements will determine how quickly the project moves forward, its approval marks a clear policy commitment from Kampala to diversify the grid, reduce climate vulnerability, and expand access.
The real test will come during implementation ensuring construction stays on schedule, financing closes smoothly, and community engagement leads to shared local benefits. If those challenges are met, Uganda will take a significant step toward its vision of a cleaner, more reliable, and more inclusive energy future.
