Uganda
Energy system of Uganda
The Electricity Connection Policy was introduced in 2018 with the ambition of increasing Uganda’s electricity access to 60 percent by 2027 through connection subsidies for consumers located close to the existing network. About 300,000 households and businesses have received free electricity connections, benefiting 1.5 million Ugandans. Implemented by the Rural Electrification Agency, the policy also provides low-cost wiring solutions (such as “ready boards”) for the poor and bulk supplies of connection materials to service providers to enable them to make new connections.
Policies
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Key recommendations
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Develop, implement and track an Energy Transition Plan to chart a path for achieving Uganda’s energy-related goals while aiming for a transition to a low-carbon, climateresilient economy, including by considering new technologies and innovation, in line with the Paris Agreement and Uganda’s Nationally Determined Contribution.
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Further develop the national energy statistics system to improve data coverage and quality to better inform policy decisions.
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Continue addressing transmission bottlenecks and stimulation of demand for productive uses of energy as priorities to take greater advantage of existing generation, increase grid stability, lower the cost of power and potentially serve more customers.
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Continue consultations on power sector reforms and provide clarity to stakeholders on details as soon as practicable. During the transition period, ensure continued investment in and maintenance of the distribution grid.
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Ensure that efforts to provide access to electricity are closely co-ordinated with other development plans so that new connections can foster economic development and productive uses of energy. This should include access to adequate and affordable financing schemes.
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Ensure that the national clean-cooking strategy under development covers as many technologies and consumer categories as possible; is integrated with a comprehensive action plan on sustainable biomass use; and employs complementary tools such as technical assistance, training, research, financial incentives and awareness raising.
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Continue working with the Extractive Industries Transparency Initiative and other partners regarding best practice for oil revenue transparency, management and investment, including the use of its Petroleum Fund, to ensure that Uganda’s oil revenues help the country achieve its economic, social and sustainable development goals. Take the lead in exploring and identifying promising areas to attract investment in mineral production, in particular by financing the further exploration of several of the 18 mineral deposits already identified, prioritising the critical minerals necessary for the worldwide transition to renewable energies.
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Leverage the potential of energy efficiency as an enabler of affordable and sustainable energy access and demand growth in both rural and urban settings through incentives and dedicated funding instruments for the purchase of energy-efficient equipment by end users while also ensuring e-mobility plans are effectively implemented so the government can reach its objectives.
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Identify sectors and key projects for public-private partnerships that would allow for the design of mutually beneficial financing structures, including domestic sources of capital where appropriate.