Engie’s Mini-grid projects

Project Description 

On June 28, 2024, The Multilateral Investment Guarantee Agency (“MIGA”) a member of the World Bank Group, issued US$ 1.62 million Guarantee to Engie Afrique SAS (France) (Engie) to cover its equity investments in Engie Equatorial Limited for the construction, operation, and maintenance of Lolwe Mini-Grid Project in Uganda against the risks of Transfer Restrictions, Expropriation, and War and Civil Disturbance. MIGA is utilizing a First Loss Layer from the Renewable Energy Catalyst Trust Fund (RECTF) with an amount of US$0.49 million. 

The Lolwe Project consists of the construction, co-financing, operation, and maintenance of a mini-grid project with an initial expected production capacity of around 960,000 kilowatt hour (“kWh”) per annum to generate, distribute, and sell energy to end-users in Lolwe Sub-County, as well as supporting various productive uses of energy and ancillary services, including clean drinking water, ice production, and fish drying processing located at an industrial park, street lighting, and training and incubation services for existing and new businesses in the area.   

Lolwe Island’s population has been relying on individual solar house systems, batteries, individual solar panels, or small diesel generators which supply energy for less than 8 hours per day and at a high cost. With the new mini-grid, the Lolwe Project can ensure a more consistent and reliable power supply to its customers – up to 3,783 of underserved household and commercial end-users at more affordable pricing. Furthermore, the productive uses of energy are expected to bring social and economic benefits to poor and underserved communities and catalyze economic activity. The Lolwe Project is the first in a series of mini-grid investments, that will be made by Engie in Uganda over the next coming years.  

Environmental Categorization   

The Project is 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. Engie’s mini-grid will bring improvements in products, services and/or employment offered to underserved groups on a substantial scale and affect market-wide adoption of inclusive business practices. In addition, Engie’s mini-grid provides a more reliable energy source as compared to the previously used diesel generators and home solar systems that had no storage capacity. The Lolwe Project will therefore be directly addressing Uganda’s rural electrification agenda, and it is also contributing to the WBG initiative announced during the 2024 Springs Meetings to connect at least 300 million people in Africa to electricity by 2030. 

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. Furthermore, the Lolwe mini-grid is expected to deploy productive uses of energy through the provision of clean drinking water, ice production, fish drying processing through a small industrial park, the provision of street lighting, and incubator training services to existing and new businesses, all of which is expected to bring social and economic benefits to poor and underserved communities.