LEGAL ALERT

ERA Suspends Licensing of New Solar and Wind Projects

Notice By Aisha Naiga Wamala (Managing Partner), Jemimah Mushabe (Senior Associate), and Christopher Percy Mpindi (Legal Assistant).

The Electricity Regulatory Authority (“ERA”) has suspended permitting and licensing of new grid-connected solar photovoltaic (“PV”) and wind power projects in Uganda. The Notice does not per se affect the rights of existing licensees and permit holders.

Issued under Section 9(1) of the Electricity Act, Cap 157, the ERA Notice of 22nd October 2025 introduces interim measures to safeguard grid stability following confirmation that the national grid’s absorption capacity for variable renewable energy (“VRE”), is fully committed.

Key Interim Measures

  1. Temporary suspension of the receipt, processing and issuance of new permits and licences over and above the already permitted or licensed projects. (Off-grid projects remain unaffected.)
  2. Priority consideration for projects that incorporate hybrid systems and energy storage technologies that enhance grid stability, flexibility, and support future VRE integration.
  3. Encouragement of investment in base-load generation technologies ie. large hydro, geothermal, and nuclear, to support long-term VRE integration without compromising grid stability.

The System Operator, Uganda Electricity Transmission Company Limited, is conducting a Grid Stability Study to assess the system’s ability to accommodate additional VRE. The results of the Grid Stability Study will inform ERA’s further guidance on this matter.

Implications for Developers and Investors

The suspension affects new entrants seeking to develop grid-connected solar PV and wind power projects in Uganda. The resumption of permitting and licensing will depend on the outcome of the Grid Stability Study, which sector sources expect to be finalised in Q1/2026.

Permit holders seeking to progress to licensing may need to revise their project models to include hybrid systems and energy storage technologies that enhance grid stability and support future VRE integration.

For more information, contact ABMAK’s Energy, Projects & Infrastructure Department at anw@abmak.org,  jm@abmak.org,  and pcm@abmak.org.

Authors

Aisha Naiga Wamala

Managing Partner

Jemimah Mushabe

Senior Associate

Percy Christopher Mpindi

Legal Assistant

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