Document summary
This report explores how the GET FiT (Global Energy Transfer Feed-in Tariffs) concept, originally developed by Deutsche Bank in 2010, is being implemented in Uganda. The concept intends to combat climate change and the lack of available energy by supporting private sector investment in capital intensive renewable generation assets in emerging and developing countries. There are major barriers for private sector investments in renewable energy projects due to lacking transparency, the (perceived) risk of retroactive changes to the Feed-in Tariffs (FiT) scheme as well as the limited creditworthiness of a single off-taker. KfW – supported by other donors – has spent significant time with public sector stakeholders in Uganda to increase awareness of private sector requirements. Additionally, the top-up of the existing FiT, which is – as the base FiT – fixed per technology (hydro, solar PV, wind, etc.), closes the remaining gap between current FiT and the levelised cost of electricity after mitigation of regulatory/off- taker risk. GET FiT has so far succeeded, with regard to private sector development activity and equity investments. Initial projects benefitting from GET FiT support are expected to start construction in early 2014 and will contribute to avoiding load shedding and/or the use of expensive, carbon intensive emergency power.