The Future for the GET FiT Mechanism

The GET FiT Program and related developments in Uganda have not gone unnoticed: neighboring countries are asking ERA and GoU to share their experience and developers and financiers are starting to inquire about similar support schemes in other parts of the continent. GET FiT and KfW have been requested to present the Program in conferences in Europe and Africa in front of public sector stakeholders, private developers, investors, banks and technology providers as well as development institutions.  This confirms not only the broad interest, but also the need for targeted support to facilitate private sector investments into the energy sector of emerging countries.

Developments partners and KfW are keen to utilize the experience from Uganda and roll out the pilot to other Sub Saharan Countries. However, all stakeholders are well aware that there is no “one approach fits all” in this regard and that GET FiT might look very different outside of Uganda. In some cases focus could be on creating an enabling regulatory and legal environment, or on guarantees to back up off taker credibility, while others might want to follow Uganda’s example on reverse auctioning or feed-in tariff top up. 

Thanks to the support from the UK Government that has made available GBP 2.3 million, KfW will undertake in 2015 pre-feasibility studies in 10 countries in Eastern, Southern and Western Africa. An initial market assessment is to be undertaken in Ghana, Malawi, Mali, Nigeria, Kenya, Rwanda, Mozambique, Namibia, Tanzania and Ethiopia. As part of the assessment, the current situation in the power market, the legal and regulatory framework as well as key bottlenecks for private investments will be analyzed. Where an interest and potential for a GET FiT approach is identified, a concept will be developed in close collaboration with the respective governments and local stakeholders.  On the basis of this assessment, 2-3 countries will be selected for a detailed feasibility study and implementation planning. The procurement of the consultant for the market assessment has just started and first results are expected in Q 3 2015.

In addition and with support from the German Government, a detailed feasibility study is currently being prepared in Zambia. The Zambian Government has been very keen to assess the potential for a GET FiT program in Zambia in order to increase private sector investments for renewable energy. A GET FiT Taskforce chaired by the Ministry of Mines, Energy and Water Development and involving the key actors in the sector has been established and will guide the GET FiT Study. Results are expected by the end of 2015.

With these activities ongoing, we hope that 2015 will see GET FiT transform from a national to a regional success story.