Scaling Off-Grid Energy Access in Uganda

The report is implemented by Open Capital Advisors, a sub-awardee of Scaling Off-Grid Energy: A Grand Challenge for Development, a global partnership founded by the U.S. Agency for International Development, Power Africa, the U.K. Department for International Development's Energy Africa campaign, and the Shell Foundation. The report highlights the growing interest in off-grid energy in Uganda, with over 32 million Ugandans, approximately 80% of the population, living without access to electricity. The Government of Uganda has set a goal of reaching universal energy access in the coming decades, which will require coordination and innovation across the off-grid industry. Uganda aims to reach middle-income status by 2020, but achieving this goal will require further public investment in energy and infrastructure. The report identifies six key challenges in advancing off-grid energy in Uganda, including limited access to local debt financing from local banks, segments of the population remaining unserved, inconsistent tax policy, lack of standardized PAYG portfolio performance definitions and reporting methods, lack of product standards and awareness of standards, and the potential of productive-use solutions not being well understood. To overcome these barriers, a joint effort of development partners, financiers, think tanks, and the private sector working in close concert with the Government of Uganda is required. Understanding the energy targets of the Government of Uganda is crucial for engaging with the government in the off-grid space. There are several existing documents and initiatives relevant to energy access, but there is a lack of alignment on targets. For instance, Uganda's Vision 2040 aims to increase access to 80% by 2040, while the EAC Vision aims for 74% by 2050, and the National Development Plan aims for an increase in access to 30% by 2020. The report also highlights the complex political structure of Uganda, with over a dozen entities managing or having an interest in energy. Many of these organizations have further sub-departments with their own targets and goals to meet. Understanding the political structure and the roles of these entities is essential for designing programs with the government. The report concludes that understanding the political landscape in Uganda is critical for advancing off-grid energy access. By acknowledging the challenges and opportunities, stakeholders can design effective programs that maximize effectiveness and increase the uptake of off-grid energy in Uganda. The report serves as a guide for off-grid energy stakeholders, both local and international, to navigate the complex political landscape and work towards achieving universal energy access in Uganda.