Of global private electricity infrastructure investment was targeted at sub-Saharan Africa from 2010-2020
98.2% of private investment funded electricity generation projects from 2010-2020, with less than 0.3% funding transmission
Amari is a US$90 million independent power transmission project in Uganda.
Gridworks is developing this first-of-its-kind project for Uganda. Amari is the pilot for the introduction of private sector capital in the country’s transmission sector.
Announced at the 2022 Commonwealth Heads of Government meeting, the Amari project will consist of the upgrade of the transforming capacity of four high voltage electricity substations at key points on Uganda’s grid:
Gridworks is working closely with a range of sector stakeholders to deliver this project. Amari demonstrates the growing interest in private participation in electricity networks as governments look for complementary and alternative means to fund critical infrastructure.
The upgrade of the substations in the Amari project will improve the supply of electricity to industrial users in line with the Government of Uganda plans to improve the competitiveness of its industry, particularly the manufacturing sector.
Amari will also allow the absorption of more renewable energy onto the grid and provide capacity to support future regional interconnection with Uganda’s neighbours.
Transmission infrastructure is critical social infrastructure. No country can develop and industrialise without access to reliable power.
Gridworks invests in transmission projects because they can deliver impact in a number of ways:
There are many bottlenecks which constrain power and reduce reliability of the transmission system in Africa, and many countries do not have a strong and interconnected transmission spine to connect all key populations centres.
Privately funded transmission projects have been used for decades in Europe, the Americas and Asia in order to expand electricity access and meet the needs of countries as they industrialise.
It is important that African Governments also have access to this form of funding in order to meet the challenge of developing sustainably.
“There is a big shortfall in the capital needed to transform Africa electricity networks. The money available from government balance sheets, or from donors and multilateral organisations simply isn’t enough to cover this shortfall. That’s why private investment has a vital role to play.
I’m confident that Amari can be the inspiration for a new approach. We want private investment in transmission to be a recognisable asset class in Africa and for Gridworks to be at the forefront of the market.”
“The upgrade of these substations will enable us to supply industrial users with increasing amounts of power…. By increasing investment in our electricity grid, we will be able to unlock suppressed demand; boost industrialisation and power our export sector.”
Gridworks makes equity investments in transmission, distribution and distributed energy utilities in Africa.
