Deutsche Bank – Responsibility
July 10, 2013 | Kampala

GET FiT Uganda Pilot officially launched – projects taking shape

The pilot project of the GET FiT program in Uganda was officially launched in Kampala just recently. In a joint declaration, Germany, Norway and the United Kingdom undertook to make funding available to support the realization of various projects for generation of renewable energy in Uganda under the GET FiT program.

Dirk Niebel, the German Minister of Economic Cooperation and Development, Thorbjørn Gaudstadsæther, the Ambassador of Norway in Uganda, and Daniel Graymore, the Director of the UK Department for International Development (DFID), signed the letter of intent together with Ugandan Minister of State for Mineral Development, Peter Lokeris.

The speakers emphasized the importance of the program for Uganda´s efforts to cope with the challenges that are arising due to its existing and steadily increasing demand for energy. Furthermore, they paid tribute to the work of Deutsche Bank and the Kreditanstalt für Wiederaufbau (KfW) development bank in developing the program and setting up the pilot project in Uganda.

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Thorbjørn Gaudstadsæther, the Ambassador of Norway in Uganda, Dirk Niebel, the German Minister of Economic Cooperation and Development, Peter Lokeris, Ugandan Minister of State for Mineral Development and Daniel Graymore, the Director of the UK Department for International Development (DFID)

The speakers emphasized the importance of the program for Uganda´s efforts to cope with the challenges that are arising due to its existing and steadily increasing demand for energy. Furthermore, they paid tribute to the work of Deutsche Bank and the Kreditanstalt für Wiederaufbau (KfW) development bank in developing the program and setting up the pilot project in Uganda.

“By combining three instruments – a top-up payment on the feed-in tariff, a guarantee mechanism and access to equity and debt funding – GET FiT constitutes an innovative approach to facilitating private investments in renewable energy. That is completely in line with the priorities of the German government in the energy sector,” stated Dirk Niebel, German Federal Minister of Economic Cooperation and Development.

“The projects supported under GET FiT will help to add urgently needed capacity for clean energy generation to the Ugandan grid. Aside from the financial and growth benefits, they will also have an important positive impact on climate and the environment (...). The UK is very excited about the potential of this program and its impact on the energy sector in Uganda,” emphasized Daniel Graymore, Director of the UK Department for International Development (DFID).

Peter Lokeris, Ugandan Minister of State for Mineral Development, underscored the central importance of the private sector for climate-friendly growth in the emerging economy of the African country: “Given the rapidly increasing demand for power in Uganda, leveraging additional private investments in renewable energy generation is crucial for the sustainability of the country’s electricity sector (...). Overall, the GET FiT program will help us to promote a reliable, climate-friendly energy supply in Uganda.”

GET FiT - Global Energy Transfer Feed-in Tariffs – was developed in January 2010 by experts of Deutsche Bank Climate Change Advisors (DBCCA) in response to a request from the Advisory Group on Energy and Climate Change of the Secretary General of the United Nations to develop ideas for promoting renewable energy (RE) projects in developing countries.

The objective of GET FiT is to combat climate change and the lack of available energy by supporting private sector investments in capital intensive renewable energy sources in emerging and developing countries. The concept combines the mechanisms and structures of the public sector with those of the private sector, thus creating an innovative public-public-private partnership.

In the GET FiT concept, we as Deutsche Bank have proceeded on the assumption that private sector investors will act independently and proactively once they see that a strong regulatory framework has been established and various attractive projects are in the pipeline. The visibility of mid-to-long term renewable energy targets decreases opportunity costs for financing institutions, i.e. the initial costs for detailed analysis of a new technology, a new market or new transaction structures.

In July 2011, the Kreditanstalt für Wiederaufbau (KfW) development bank and Deutsche Bank decided to prepare a joint feasibility study for a GET FiT pilot in Uganda. That feasibility study was presented in October 2012. A stakeholder meeting took place in April 2013. A first round of applications for support under the GET Fit program, in which developers could present their projects for renewable energy power generation in Uganda, already started shortly after that. It was very successful with regard to private sector development activity as well as equity investments and attracted a large number of applications from a wide range of various stakeholders.

The closing date for submission of applications was April 24th, 2013. In July 2013 an investment committee will decide which of the projects submitted will receive support. On the basis of the initial assessments, it can be assumed that all suitable projects have already secured the financing they require. Signing of the contracts is scheduled for mid 2014. All GET FiT projects are expected to be on-grid by the end of 2016.

“We find it very encouraging to see that so many project developers are interested in developing renewable energy projects in Uganda. GET FiT has provided important stimulus for investments in this sector,” said Thorbjørn Gaudstadsæther, Ambassador of Norway in Uganda, summing up the positive developments.

Pilot project:

15 clean power stations

for Uganda

“By combining three instruments – a top-up payment on the feed-in tariff, a guarantee mechanism and access to equity and debt funding – GET FiT constitutes an innovative approach to facilitating private investments in renewable energy.”

Dirk Niebel German Federal Minister of Economic Cooperation and Development

“The GET FiT program will help us to promote a reliable, climate-friendly energy supply in Uganda. ”

Peter Lokeris Ugandan Minister of State for Mineral Development

“The projects supported under GET FiT will help to add urgently needed capacity for clean energy generation to the Ugandan grid.”

Daniel Graymore Director of the UK Department for International Development (DFID)

“We find it very encouraging to see that so many project developers are interested in developing renewable energy projects in Uganda. GET FiT has provided important stimulus for investments in this sector.”

Thorbjørn Gaudstadsæther Ambassador of Norway in Uganda

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