UGANDA Law and Practice Contributed by: Onyango Owor, Miriam Babirye Kaggwa and Namugera Joel Peter, Onyango & Company Advocates
6.2 Key Developments in Renewable Energy and Cutting Emissions The Energy Policy 2023 This policy was launched in 2023 to replace the 2002 policy. It serves as Uganda’s comprehensive strate- gic blueprint for its energy sector. Its most significant aspect is the establishment of an ambitious and diver- sified energy vision, aiming to increase Uganda’s total generational capacity from 1,378.1 MW in 2022 to 52,481 MW by 2040. This plan dramatically shifts the energy mix away from reliance on large hydropower by aggressively promoting solar, nuclear, geothermal, wind, and waste-to-energy resources. To achieve this, the policy outlines crucial strategies, including proposing tax incentives and waivers for renewable energy equipment imports, promoting public-private partnerships (PPPs), and creating a framework for integrating emerging technologies like green hydro- gen. It is an overarching document which sets the direction, targets, and cross-sectoral strategies for a sustainable energy future. The Electricity (Amendment) Act 2022 This amendment strengthened the regulatory frame- work for the electricity subsector, with direct implica- tions for renewable energy. A key provision was the formalisation and support for small-scale renewable energy generation. The Act defines the scope of the Renewable Energy Feed-in-Tariff (REFIT) programme, applying it to prescribed priority technologies such as hydro, wind, solar, geothermal, biogas and biomass for projects with an installed capacity of up to 20 MW. The amendment created a stable and predictable environment for investors in small to medium-sized renewable projects, which is crucial for diversifying Uganda’s energy mix. Climate Change Initiatives Uganda has enacted the National Climate Change Act and the National Climate Change (Climate Change Mechanism) Regulations in alignment with its nation- ally determined contributions (NDCs) to the Paris Agreement. The approval of entities such as those dealing in renewable energy that are interested in par- ticipating in the carbon market is conducted by the Ministry of Water and Environment (Climate Change Department). The project proponent is required to apply for a letter of no objection from the ministry,
Oil and Gas Limited (“Heritage Oil”) and the URA over income tax assessments imposed on Heritage Oil as a result of the sale of its petroleum exploration rights to Tullow Uganda Limited. In its decision, the court emphasised the need for the enforcement of taxation laws to align with legislative intent and international agreements. The URA was ordered to refund UGX709 billion to Heritage Oil for a wrongful assessment dat- ing back over 14 years. This decision restored investor confidence in Uganda’s court system and commercial justice against the state. Antitrust Regulations In September 2025, the Competition Regulations 2025, which operationalised the Competition Act Chapter 66, which had been enacted by parliament in 2024, were published in the National Gazette, bringing them into force. The fully constituted antitrust regime is meant to assist in prohibiting anti-competitive prac- tices and agreements. This should reassure investors starting up companies in the energy and infrastructure sector that they do not need to worry about being victimised by the dominant industry players. Enforceability of International Arbitration Awards and Project Agreements The High Court of Uganda in April 2024 made a sig- nificant decision in the energy sector when it allowed the enforcement of the first London Court of Inter- national Arbitration (LCIA) award. The dispute sub- ject to arbitration was between Great Lakes Energy Company (GLE) and its local partners Bryan Xsabo Strategy Consultants (Uganda), Mola Solar Power Systems (Uganda) and Consicara Global Investors, and concerned a solar power plant. The GLE was initially promised a 60% shareholding in the project, which was then unilaterally revoked by Xsabo and its partners. In the final award, the LCIA found that Xsabo and its partners had violated the project agreements. The GLE was awarded USD1.18 million, along with legal costs and arbitration expenses. The application to enforce this final award was successful. Just like the Heritage Oil case, this decision reinforced inves- tors’ trust in the Ugandan court system.
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