Outlook for 2018
Despite the many achievements and considerable progress during the past two years, challenges lie ahead for the upcoming year. Several projects are still presenting construction delays and failing to address outstanding environmental and social compliance issues, with five projects likely to achieve commercial operation within the first half of 2019 and one project delayed until 2020. For these projects, the continued support of GET FiT in 2018 will be contingent on the developers intensifying efforts, achieving considerable progress on the ground, and demonstrating a capacity and willingness to achieve commercial operation in a timely manner.
Implementation oversight of projects during 2018 will be critical to achieving Programme targets. Projects will continue to be closely monitored through the ongoing construction supervision visits. Efforts will be maintained and intensified during 2018 to help developers further and to bring as many projects as possible to completion within the year. Where appropriate, this may include increased follow up on individual projects through additional supervision visits and by incentivising developers through contractual tools, such as financial penalties in the form of subsidy reductions.
Construction of critical grid infrastructure for power evacuation of GET FiT projects will be key. To safeguard GET FiT targets and ensure viable grid interconnection for all projects, KfW and the GET FiT Secretariat will further intensify pressure on the implementation of components within the interconnection support scheme. This includes the comprehensive infrastructure reinforcements and TA support which require a high level of coordination between all stakeholders. The GET FiT team will support GoU entities and project developers by facilitating joint planning and continuous dialogue throughout the process. Continued efforts in this regard will be critical to avoid project delays and legal issues related to grid interconnection for the range of projects.
If the challenges outlined above are addressed through joint efforts by all stakeholders, 2018 indeed has the potential to be another momentous year for the GET FiT Programme. All of the biomass and solar technology projects from the GET FiT portfolio are now operational, and therefore all remaining projects under construction are hydropower. Of these, at least five projects are expected to achieve commercial operation before the end of the 2018 calendar year, adding a further 45.5 MW of installed capacity and raising the total installed capacity of GET FiT projects to 103.6 MW. In terms of energy output, this translates to an estimated increase in 2018 of 202 GWh to a total energy supply to the grid from GET FiT projects of 470 GWh. Hence, it is expected that a large proportion of the Programme’s aims and objectives will be realised in the form of installed power and the supply of clean, renewable energy to Uganda.