Uganda has moved to protect new small and mid-sized renewable energy projects, making it the first African country to insure small power producers against financial risks.
The country signed an agreement with the Regional Liquidity Support Facility (RLSF) to offer financial protection to renewable energy projects that produce up to 50MW of power in sub-Saharan Africa.
RLSF is a joint initiative of the African Trade Insurance Agency (ATI) — a multilateral guarantor — and German state-owned development bank KfW, with funding from the German Ministry of Economic Co-operation and Development.
Uganda is seen as an ideal market based on the relatively high number of viable independent power producers (IPPs).
Source: The East African