Written By: Faith Jemosop
Uganda’s energy sector is experiencing unprecedented growth, spurred by massive investments in oil and gas infrastructure and a robust push toward renewable energy.
This momentum was clearly on display as the 10th Uganda Energy Convention 2025 opened today in Kampala, themed “Integrating Oil, Gas and Renewable Energy for a Sustainable Future.”
The two-day convention, which brings together policymakers, global energy companies, investors, and sustainability advocates, comes at a critical time. Uganda stands on the brink of becoming an oil producing nation, even as it fast-tracks solar, hydro, and nuclear energy projects to ensure long-term sustainability and energy independence.
Commercial Oil Production Set to Boost Economy
Uganda’s energy sector is on the brink of a major shift, with commercial oil production expected to kick off in 2025. This marks a significant milestone nearly two decades after oil was first discovered in the Lake Albert region back in 2006. The area is believed to hold around 6.5 billion barrels of crude oil, with about 1.4 billion barrels confirmed as recoverable.
This development is expected to propel the country’s economy into double-digit growth territory. According to the International Monetary Fund (IMF), Uganda’s GDP is projected to grow by 10.8% in the 2025/2026 fiscal year, a significant increase from the previous estimate of 6.2%. This remarkable growth is primarily attributed to oil-related revenues, increased foreign direct investment, and infrastructure development linked to energy projects.
Key Projects Driving the Oil Sector
Uganda’s oil story is anchored by major infrastructure projects. The East African Crude Oil Pipeline (EACOP), a 1,443-kilometer pipeline, will transport crude oil from Uganda’s oil fields in Hoima to the Tanzanian port of Tanga. The $5 billion project is being developed by TotalEnergies, CNOOC, and the national oil companies of Uganda and Tanzania.
Despite facing international criticism from environmentalists and divestment from some Western banks, the Ugandan government remains steadfast. Officials at the convention stressed that EACOP will follow stringent environmental and social safeguards, with the government promising compensation for displaced communities and strict regulatory oversight.
Another key project is the planned Uganda Oil Refinery, which will process 60,000 barrels of oil per day to serve domestic and regional markets. The refinery is expected to boost local job creation, reduce fuel imports, and catalyze industrialization.
Renewable Energy Is Growing Alongside Oil
While oil and gas dominate headlines, Uganda’s renewables sector is quietly undergoing a revolution. The government is pursuing an integrated energy approach that gives equal weight to solar, hydro, and even nuclear power.
In September 2024, Uganda commissioned the Karuma Hydroelectric Power Station, a 600 MW facility on the Nile River and the country’s largest power project to date. This was followed by the continued rollout of solar projects such as the Xsabo Lira Solarline (50 MW) and the Ituka Solar Power Station (24 MW), aimed at increasing electricity access, especially in off-grid regions.
“The government has learned that sustainability cannot be achieved through fossil fuels alone,” said Irene Bateebe, Uganda’s Permanent Secretary at the Ministry of Energy and Mineral Development. “Our energy mix must be balanced, affordable, and future-proof.”
Hydropower remains Uganda’s primary source of electricity, accounting for over 80% of the national grid supply. However, solar energy is rapidly growing in importance, thanks to public-private partnerships and international donor support.
Uganda Looks to Nuclear Power for Future Energy
Uganda is also exploring nuclear power as part of its long term energy strategy. The government has signed cooperation agreements with Russia’s Rosatom and South Korea to build the country’s first nuclear facility, projected to generate 2,000 MW by 2032.
Officials argue that nuclear energy offers a stable, low-carbon power source capable of supporting Uganda’s industrialization and manufacturing goals. However, critics have raised concerns about safety, cost, and waste management.
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The Uganda Energy Convention has dedicated an entire panel to nuclear energy policy, with discussions focused on feasibility studies, international regulations, and the capacity-building needed to safely operate such facilities.
Balancing Growth with Environmental Responsibility
Uganda’s exceptional energy growth does not come without controversy. Projects like EACOP and the planned refinery have triggered backlash from environmental groups, who warn of ecosystem damage, carbon emissions, and displacement of local communities.
In response, government speakers at the convention emphasized Uganda’s right to develop its natural resources and reiterated their commitment to responsible environmental stewardship.
“Uganda contributes less than 0.1% to global carbon emissions,” said Minister of Energy Ruth Nankabirwa. “Yet we are being asked to abandon oil that could lift millions out of poverty. Our approach is about balancing economic growth with climate responsibility.”
The government has pledged to keep national emissions low by expanding green energy and enforcing environmental impact assessments on all major projects.
Energy Access and Regional Integration
Currently, only 57% of Uganda’s population has access to electricity, according to the Uganda Bureau of Statistics. Bridging this gap is central to the government’s energy agenda.
Through grid expansion, off-grid solar initiatives, and regional power interconnections, Uganda aims to achieve universal electricity access by 2040. Projects such as the Isimba Hydropower Plant and power transmission lines to Kenya, Rwanda, and the DRC are already strengthening regional integration.
Uganda is positioning itself not just as a national energy hub but as a regional power exporter, with plans to supply electricity to neighboring countries experiencing chronic shortages.
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The Uganda Energy Convention 2025 is more than a showcase of achievements; it is a strategic moment for reflection, planning, and coordination. Panels on energy financing, climate resilience, grid modernization, and youth engagement are setting the tone for an energy policy that is inclusive, innovative, and investor-friendly.
Analysts say Uganda’s integrated approach leveraging oil wealth to fund renewable infrastructure is a rare model in Africa.
“This isn’t just an oil boom, it’s a complete energy transformation,” said Dr. Andrew Tumusiime, an energy policy expert at Makerere University. “If Uganda continues to invest wisely and govern transparently, it could become a model for energy transition in Africa.”
