African Trade & Investment Development Insurance (ATIDI) has announced its support for the 20 MW Ituka West Nile Uganda Ltd solar project developed by Dubai-based Independent Power Producer (IPP), AMEA Power. This move is part of the broader efforts by Gulf countries to position themselves as leaders in the African renewable energy market.
The support from ATIDI will be facilitated through its Regional Liquidity Support Facility (RLSF), providing payment guarantees for the benefit of the project on behalf of Uganda Electricity Transmission Company Limited (UETCL), the national power utility. The partnership was revealed during a signing ceremony at the 28th Conference of the Parties to the UN Framework Convention on Climate Change (COP28) in Dubai. This underscores ATIDI’s commitment to risk mitigation and project resilience within the dynamic landscape of sustainable energy.
ATIDI CEO Manuel Moses expressed gratitude to AMEA Power for catalyzing energy independence in Uganda. Moses emphasized ATIDI’s dedication to fostering sustainable development and supporting Independent Power Producers (IPPs) in diversifying Africa’s energy mix. He noted the transformative impact of such collaborations, extending beyond power generation to empower communities, drive economic growth, and promote a sustainable future.
Aqueel Bohra, Senior Director for Project Development at AMEA Power, acknowledged ATIDI’s crucial support for the success of the project. Bohra highlighted that the solar project would not only provide essential power to homes and industries but also contribute to economic growth by creating jobs and safeguarding the environment.
Uganda has made significant strides in increasing electricity access rates, witnessing annualized increases of 3% between 2010 and 2020. However, the current access rate of 42% is a notable improvement from the 12% recorded in 2010. With a national installed capacity of 1,346 MW, primarily from hydro-powered projects, Uganda remains vulnerable to climate change impacts, especially in the event of prolonged drought affecting electricity generation.
The United Arab Emirates (UAE) aims to establish itself as a market leader in Africa’s green energy sector, given the continent’s abundant renewable energy potential. Africa offers lucrative opportunities for Gulf countries to diversify their portfolios, aligning with their commitments at COP28. The UAE’s AMEA Power has been actively involved in renewable projects across Africa, including plans for a 1 GW green hydrogen project in Kenya, a 200 MW geothermal project in Uganda, a 300 MW wind farm in Ethiopia, and a solar and battery initiative in Djibouti.
The Invest in African Energy (IAE) forum in Paris, scheduled for May 14–15, 2024, is expected to explore Africa’s untapped renewable energy potential. The forum aims to connect Middle Eastern, European, and African energy players to advance energy security and climate diplomacy goals.
While the UAE has been leading renewable energy investment in Africa, other Gulf nations, including Saudi Arabia and Qatar, express their interests in accelerating project developments and participating in sustainable economic growth across the continent. The IAE 2024 forum presents a strategic platform for fostering partnerships and unlocking new green energy finance between Gulf energy companies and African resources. The event aligns European and Middle Eastern energy interests, promoting mutually beneficial collaborations to harness Africa’s vast renewable resources.
