The main purpose of the GET FiT Program Uganda is to fast-track a portfolio of up to 15 small-scale RE generation projects (1MW-20MW) promoted by private developers with a total installed capacity of roughly 125MW. This will help to add much-needed clean generation capacity, help to strengthen regional grids and result in emissions reductions of 11 million tons of CO2.
GET FiT’s addresses the key barriers to private investment in the sector:
- low FiTs (some below the levelised cost of energy) for renewable energy,
- high perceived offtaker risks (with subsequent demand for offtaker guarantees), and
- lack of availability of long-term commercial ficing at acceptable terms and conditions.
In addition, according to KfW Uganda is generally perceived as a risky investment destination.
GET FiT combines:
- Premium Payment Mechanism (a results-based top-up on the existing REFiT on a per-kWh basis, funded by the development partners through KfW);
- Guarantee Facility to secure against offtaker and political risks, managed by the World Bank;
- Private Ficing Mechanism from Deutsche Bank that will offer debt and equity at competitive rates.
FIT Premium Payment Mechanism:
The GET FiT Premium Payment Mechanism is designed to make small-scale renewable energy generation projects (between 1MW and 20MW in installed capacity) promoted under the Renewable Feed-In Tariff (REFiT) system ficially viable, thus enabling a large portfolio of projects to move to financial close and into implementation. GET FiT Premium Payments are additional payments per kWh, above and beyond the regulated REFiT tariff levels as published by ERA.
GET FIT reinstates solar PV as a eligible technology to benefit from the feed-in tariff support scheme.