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PSFU, Dutch launch UGX14 bn renewable energy project

Peter Nyanzi 27th Mar, 2024 Energy Pedson Mumbere
PSFU, Dutch launch UGX14 bn renewable energy project

SET: Ms Boven (L) and Hon. Opolot (2L) at the launch of the project in Kampala.


The Private Sector Foundation Uganda (PSFU) in partnership with the Netherlands Directorate General for International Cooperation (DGIS) have launched a renewable energy project worth 3.4 million Euros (about UGX14 billion), aimed at on increasing access to solar and clean cooking technologies in 13 refugee-hosting districts in northern Uganda.

Speaking at the launch in Kampala on March 26, officials said the project, dubbed "Demand Side Results Based Financing Project," aims to bridge the end-user affordability gap for improved clean energy services and off-grid solar products in underserved refugee communities and host districts.

The project will offer incentives to selected private sector companies to trigger a mandatory price reduction that is equivalent to a preset affordability gap within the targeted project areas.

  • The subsidy would be indirectly transferred to the end-user as a discounted price, which may be paid through installments on a pay-as-you use basis.

Ms Karin Boven, the Netherland Ambassador to Uganda, said the project basically aims to help address energy poverty, which she said is still a serious problem in Uganda.

"Energy poverty is a pressing issue that affects millions of people around the world, particularly in developing countries. Uganda is one such country grappling with the challenges of energy poverty whereby 57% of Ugandans have access to energy but only 8% have access to clean energy therefore this fund is timely," she said.

  • On behalf of the Government of Uganda, Hon. Okaasai Sidronius Opolot, the Minister of State for Energy and Mineral Development, welcomed the initiative.

"I thank the Kingdom of the Netherlands and other funding partners for this initiative, but I am calling upon stakeholders to rationalise this project for better implementation and offer subsidies on clean energy products so as to adopt technologies that will help access clean energy," he said.

Mr. Francis Kajura, the PSFU Programmes and Partnerships Manager, said they would do everything to ensure that the products supplied under the project are of the highest quality.

"We will make sure that the clean energy products sold under the project are not counterfeits as well as making sure that they are tested to the national standards," he said.

With a population of over 47 million people, Uganda faces significant barriers to enable all citizens to access reliable and affordable energy sources.

  • According to the International Energy Agency, as of 2019, Uganda ranked seventh among the top 20 access-deficit countries, with 26 million people lacking access to clean electricity.
  • Over the years, the Embassy of the Netherlands has been a key partner in efforts to scale up initiatives that advance energy access across the country, given the benefits that come with access to energy including enabling higher household incomes by setting up micro businesses, irrigation systems and generally lifting the quality of life.

In recent years, many Ugandans in off-grid regions have embraced renewable energy sources but lack of enforced product standards has been a major challenge because of the rampant counterfeit and poor quality products on the market.

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