Women in Energy: In conversation with Eng. Ziria Tibalwa Waako on Uganda’s energy transition and ERA’s strategic initiatives

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19 Aug 2024
Women in Energy: In conversation with Eng. Ziria Tibalwa Waako on Uganda’s energy transition and ERA’s strategic initiatives

The Electricity Regulatory Authority Uganda (ERA) is currently under the helm of CEO Eng. Ziria Tibalwa Waako and in this interview she discusses Uganda’s regulatory challenges, ERA’s key projects, and how her experience and technical expertise are advantageous in leading the organisation at such a critical time.

As stated in Uganda’s Energy Transition Plan, the country aspires to provide universal access to electricity and cleaner cooking by 2030. The plan also aims for Uganda to be an energy hub for East Africa, which has some of the world’s lowest electricity access rates.

Playing a critical role in meeting these goals is the Electricity Regulatory Authority Uganda (ERA), which is currently under the helm of CEO Eng. Ziria Tibalwa Waako. In this interview, she discusses Uganda’s regulatory challenges, ERA’s key projects, and how her experience and technical expertise are advantageous in leading the organisation at such a critical time.

Interviewer: As the CEO of the Electricity Regulatory Authority, what are the most significant regulatory challenges Uganda faces in achieving a just and equitable energy transition? How is ERA addressing these challenges? 

Eng. Waako: In my view, regulatory challenges are not only limited to Uganda but also cut across the continent. The challenges include balancing the interests of stakeholders — consumers, investors, and the government — and ensuring effective tariff management. The latter entails sustaining tariffs' cost-reflectiveness while meeting affordability to support industrialisation and the social welfare/livelihood of the poor population.

Additionally, the financial sustainability of the electricity subsector is challenging. Demands must be balanced to meet sector investment requirements, sustaining reliability and quality of supply while maintaining affordability and a cost recovery tariff.

Another challenge is the cost of financing and its effect on end-user tariffs over the short, medium, and long term. Moreover, there's a pressing need to de-risk the electricity subsector to attract competitively priced financing for the necessary investments.

In addition, the cost of renewable energy targeted at the poor population exceeds the customers’ willingness to pay. Evacuating renewable energy projects presents another challenge, as massive capital investments are required for the transmission and distribution of energy to various load centers and end-user customers.

Interviewer: Given the theme of the summit — “Investments, integration, infrastructure, and governance to fuel the energy transition” — how is ERA working to improve Uganda’s electricity infrastructure to accelerate the energy transition? 

Eng. Waako: Uganda is endowed with abundant renewable energy sources. Currently, more than 90% of Uganda's energy generation mix is renewable.

The ERA, through the amendment of the Primary Law, has introduced several initiatives to encourage private sector participation in the electricity subsector. These initiatives include the rebate policy, the Independent Private Investments in the Transmission Network (IPT) framework, the direct sale of energy in bulk to specified customer categories, and the net-metering regulation for prosumers. 

Additionally, the authority has opened up the subsector for private participation across the entire value chain. By maintaining a transparent and predictable policy and regulatory framework, we are also seeing the risk perception improve and capital costs become more affordable. 

To respond to changing business models and adopt new frontier technologies, we have continuously improved the regulatory framework. This has been achieved while maintaining a hybrid framework for setting performance tariff incentives as well as a cost/revenue recovery model aimed at improving utility efficiency. Now, we are also in the last stages of amending the Grid Code Regulations to enhance the quality of power supply and standards. 

Moreover, we have sustained an effective stakeholder engagement strategy across the board, from legislators to electricity customers. As part of our commitment to expanding access to clean energy, we promote off-grid solutions to support value addition and improve livelihoods.  Currently, we are also implementing various new connection financing initiatives to make the cost of new connections more affordable. These include the hybrid mechanism for new connections, cross-subsidisation, and government concession financing.

Since 2021, we have been promoting clean cooking by cross-subsidising the Electricity Cooking Tariff for domestic customers and institutions, including hospitals, universities, schools, and prisons. To further reduce end-user tariffs, we are undertaking various demand growth initiatives, which aim to spread costs over an increased customer base and gigawatt hours.

Interviewer: Can you highlight some of the key renewable energy projects currently underway in Uganda? How is ERA supporting these projects to ensure their successful implementation and contribution to the national grid?

Eng. Waako: The ERA currently has 47 renewable energy projects commissioned and generating electricity, while over 50 additional renewable energy projects are under development by various project developers.

In response to technological price changes affecting power generation, the ERA has updated the Renewable Energy Feed-in-Tariff (REFIT). Furthermore, the Primary Law was amended to increase the REFIT threshold from 20 MW to 50 MW, aiming to enhance economies of scale and attract more cost-efficient and financially viable projects.

To further streamline the process, the ERA has refined the licensing framework by establishing a clear policy and standard templates for various technologies. Additionally, the ERA has standardised key agreements, including Power Purchase Agreements, Implementation Agreements, Direct Agreements, the Grid Interconnection Code, the Wheeling Framework, and Licensing instruments.

In support of effective decision-making, the ERA undertakes continuous capacity building for policymakers, legislators, board members, and staff, fostering trust, confidence, and legitimacy.

Interviewer: With over 30 years of experience in Uganda’s electricity subsector and your background as a registered electrical engineer, how has your technical expertise influenced your approach to leading ERA and addressing the challenges in the electricity subsector?

Eng. Waako: Knowledge is key in the proper regulation of the electricity subsector. I possess a mix of practical experience and technical knowledge to understand what goes into the proper operation and maintenance of the electricity subsector, coupled with leadership exposure and training to balance empathy and execution.

My technical background also enables me to provide practical, innovative solutions to the challenges of the electricity subsector from a point of knowledge and expertise. 

The grid network system now has inbuilt capabilities to locate faults, isolate faulty areas, and retain healthy areas in service, thereby enhancing efficiency through self-healing network solutions. This has minimised downtime, increased the gigawatt hours sold, and improved the customer experience. Collection rates have also greatly improved to above 99% due to the adoption of pre-payment and automatic meter readers. Energy losses have been reduced by more than 50% due to the capability for timely and accurate information relay, which supports real-time interventions to curb power theft.

I have introduced the Women in Energy initiative in the electricity subsector to address the need in Uganda, and now on the African continent, for women to participate in decision-making as well as technical work at all levels in the energy sector. The Women in Energy program encourages young females to take up Science, Technology, Engineering, and Mathematics (STEM) subjects and courses.

Eng. Ziria Tibalwa Waako is one of the speakers at the upcoming Africa Energy Leadership Summit, which is themed “Investments, integration, infrastructure, and governance to fuel the energy transition.” The summit will be held as part of the first-ever Africa Energy Expo, taking place in Kigali, Rwanda, from November 4 to 6, 2024. 

 

Africa Energy Expo, endorsed by the Rwanda Ministry of Infrastructure and supported by the Rwanda Convention Bureau, will gather key African decision-makers to tackle the continent’s energy and power infrastructure gap. The event supports COP27 Africa climate pledges and the Africa Power Vision. 

Join us at the Africa Energy Expo from 4 - 6 November in Kigali Centre Rwanda and experience the Africa energy landscape at its finest. The event will serve as a scene-setter to the Africa Power Vision by bringing key energy stakeholders together to increase the level of international support and facilitate access to modern, affordable and sustainable energy solutions in Africa. Register now! 

 

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