Uganda Launched Cross-Border Power Interconnection Project
The initiative uses $121 million in funding to link Uganda's power grid with South Sudan's energy infrastructure.
Updated on Sept. 25, 2026 in Utilities
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Uganda has commenced a major power interconnection project designed to link its domestic grid to South Sudan. The effort aims to help South Sudan transition away from expensive diesel generation while providing Uganda a market for its excess electricity.
Why it matters
The project serves as a critical step in integrating South Sudan into the Eastern Africa Power Pool. By creating cross-border energy infrastructure, both nations seek to improve reliability and reduce reliance on costly localized generation.
The African Development Fund provided $121 million to support the 299-kilometre high-voltage transmission line. This infrastructure includes a 400-kilovolt line, with 150 kilometres constructed within Ugandan territory.
The players
African Development Fund
This institution is a concessional window of the African Development Bank Group that provides low-interest loans and grants to support economic development in low-income African nations.
Eastern Africa Power Pool
This is a specialized institution of the Common Market for Eastern and Southern Africa that coordinates the development of integrated regional energy grids.
The details
The project involves building the Bibia Substation and upgrading facilities at Olwiyo and Karuma to facilitate the 400-kilovolt connection. Governments will manage the procurement and implementation phases, which involve environmental and social requirements.
Timeline
The technical launch of the project occurred on September 25, 2026.
Project implementation is scheduled to occur from 2026 to 2029.
Market Landscape
This project integrates regional utility markets to combat national energy deficits through cross-border collaboration. It positions both nations to stabilize energy costs by expanding the scope of the Eastern Africa Power Pool.
Residents and businesses in South Sudan may eventually see lower energy costs as the nation shifts from expensive diesel power to grid-supplied electricity. Meanwhile, Uganda aims to monetize its surplus power generation capacity to bolster its own energy sector revenue.
The takeaway
Large-scale cross-border infrastructure remains the primary vehicle for stabilizing energy access in developing markets. Investors and stakeholders should track procurement milestones through 2029 to gauge the timeline for regional grid integration.
Further reading
Learn more about global infrastructure trends in our Utilities section.
Source note: This article includes information reported by Nilepost News.
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