Uganda launches FITs

Last week it was Turkey. No newcomer to the concept, Turkey revised its program, expanding it modestly, and added a new twist with bonus payments for "Made in Turkey" products. This week it is Vietnam, that dipped its toe into the feed-in tariff waters by announcing a draft proposal. But it is Uganda that will set heads spinning this week. Quietly, without fanfare, Uganda has announced one of the most sophisticated, if not the most sophisticated program in Africa.

Ugandans have quietly launched a program they simply call a Renewable Energy Feed-in Tariff (REFIT). Uganda follows South Africa and Algeria with early feed-in tariff programs. However, Uganda appears to have learned lessons from other programs worldwide.

Of particular interest are the highly differentiated tariffs for hydro projects from one to eight megawatts. The tariffs are in fact linear but presented in tabular form in increments of 100 kW. Further, the Uganda program specifies capacity caps for each technology by year. This is clear policy guidance on how much the country wants of which technology. The details of the FITs and further information can be found here.