Access to affordable, reliable and clean energy is a fundamental requirement for poverty reduction and sustainable development. In Uganda just over 25% of the population has access to electricity. Over 80% in predominantly rural settings still are not able to access electricity. For this population, access through of-grid technologies, including solar home systems (SHS) and mini-grids, is crucial. This project aims at creating an enabling environment that accelerates the uptake of SHS in secondary cities of Gulu and Mbarara. Through strategically engaging key stakeholders and partners who are active in the solar sub-sector, the project intends to support the SHS sector to make progress towards being a vibrant market that supports both businesses and customers for SHS it is proposed they will be delivered through several activities aimed at unlocking the barriers that face solar market stakeholders (businesses and customers). Among the interventions, the project is supporting the Ministry of Energy and Mineral Development to review the Energy Policy and include more ambitious targets for SHS. It also seeks through this activity to put in place an enabling environment for scaling up SHS across the country. Another key activity is premised around capacity building of Financial Institutions to unlock local currency financing (mainly working capital) to solar businesses, which would enable them to expand their operations. Another aspect looks at business training to nascent solar businesses and strengthening the quality assurance measures for SHS through the Uganda National Bureau of Standards. 

The project is being implemented is under implementation until December 2020.  

This project aligns with IO1. Strengthened national, sub-national and local green growth planning, financing, and institutional frameworks. 

Impact:  Increased access to affordable clean energy for low-income urban households in Gulu and Mbarara through creating an enabling environment. 

Outcome: N/A 

Project Outputs completed in 2020:  

Outcome: N/A 

Project Outputs completed in 2019:  

i. Green Growth Policies: 

Policy Assignment:  

• The market assessment completed where the project assessed the market environment that could improve the conditions for solar home systems businesses and customers. Recommendations included the improvement of quality assurance, lessening the tax burden on solar products and increasing access to finance for solar businesses and customers.

ii. Green Investments:N/A

iii. Capacity Building and Knowledge Products:  

• Capacity building: Aiming to conduct a Market Assessment and Geo-spatial mapping of solar home systems in two secondary cities was completed. The assessment and mapping were undertaken through surveys of over 2000 households, 287 small and medium enterprises and 37 solar companies in the secondary cities. 

Project Manager: Fredrick Barasa 

Dagmar Zwebe, Fred Tuhairwe and Mariah Kizza, Nishant Bhardwaj.