Engie’s Mini-grid projects

Project Description 

This summary is related to applications made by Engie Energy Services (Engie) to cover its equity and/ or shareholder loan investments of approximately up to US$21.8 million in a portfolio of 45mini-grids’ projects to be implemented in Uganda through 2028. The Lolwe Project is the first of Engie’s mini-grids projects that was developed in Lolwe Sub-County Namayingo District, an island on Lake Victoria, for which Engie has contributed an equity investment of US$1.8 million that will be covered by MIGA against the risks of Expropriation, War and Civil Disturbance, and Transfer Restriction and Inconvertibility for a tenor of up to 20 years.   

The Lolwe Project consists of the construction, co-financing, operation, and maintenance of a 600 kWp solar mini-grid project, the provision of clean drinking water, ice production and fish drying processing through a small industrial park; the provision of street lighting; and training and incubation services to approximately 200 existing and new businesses. The project is operational since October 2022 and will supply approximately 976,791 kWh of energy production per annum to 3,783 households and commercial end-users.  

Environmental Categorization  

The Project is a Category B under MIGA’s Policy on Environmental and Social Sustainability (2013). Click here to view the Environmental and Social Review Summary. 

Development Impact 

The Project aims to increase energy access in one of the most isolated rural areas in the country, thereby facilitating economic activities and improving livelihoods of the occupants. In addition, the project is expected to generate greenhouse gas (GHG) emissions savings while having the potential to stimulate future investments that increase inclusion by reaching the underserved population. The Project is aligned with the strategic objectives of Uganda’s Country Partnership Framework (FY16-21), Strategic Focus Area B, via the fourth objective of enhancing resilience of the poor and vulnerable. This objective includes the push to increase access to electricity in rural areas to strengthen the conditions for more diversified employment opportunities.