Kiira Motors seeks 16 per cent cut on power at charging stations

“What we are requesting the regulatory body is to give us a standard electricity tariff for these charging spots, which is lower to encourage the use of electric vehicles across the country,” said Kiira’s Richard Madanda.

Uganda's Electricity Regulation Authority has put electricity consumers in four categories: domestic, commercial, medium industrial, large and extra-large consumers. The regulator also has a separate rate for street lighting.

Current tariffs for domestic consumers are Ush805 ($0.21) per unit, Ush611 ($0.16) for commercial consumers, Ush461 ($0.12 for medium industrial consumers and Ush384 ($0.10) for large consumers. Extra-large consumers, including big factories like Kiira Motors, are charged Ush325 ($0.08) per unit while the street lighting consumer category is billed at Ush370 ($0.09).

Kiira Motors is suggesting Ush270 ($0.07) per unit for all charging points.

“Our buses for example would need about 300 units to cover a distance of 300km,” Madanda said.

If charged at the domestic power tariff, consumers would need about Shs240,000 ($64.52) for a distance of 300km. The same amount of money would buy about 48 litres of petrol, which could take a small vehicle for more than 500km.

The company has set up three charging systems in Nakasongola, Kampala and at their plant in Jinja. Nine more points are expected to be put up between Kampala and Jinja in the next two months.

Electricity challenges

Limited energy access, high energy costs and power outages remain principal barriers in Uganda's push for e-mobility. Large-scale Electric Vehicle (EV) fleets would place substantial pressure on the existing electricity grid.

This lack of infrastructure and supplier capacity is largely constraining the demand for e-mobility in Uganda. According to sector players, private enterprises must provide a wide range of e-mobility services, which can be resource- and capital-intensive.

At the global scale, EVs have the potential to mitigate greenhouse gas emissions and climate change and improve public health, accessibility and economic development.

There is a plan to introduce a fleet of 980 buses in Kampala, through a partnership between India’s Ashok Leyland and Kiira Motors Corporation under their long-term technology partnership to build capabilities to Develop, Make, and Sell motor vehicles and components in Africa.