Govt in push to subsidise renewable energy
Mr Roy Nyamutale Baguma (right), the Uganda Energy Credit Capitalisation Company managing director signs partnerships with energy service companies in Kampala on Wednesday. Photo / Courtesy
What you need to know:
- The partnership, under the Electricity Access Scale-up Project, is financed by World Bank and government of Uganda with a funding of $110m
The Uganda Energy Credit Capitalisation Company (UECCC) has signed a partnership with 87 companies in a project that seeks to lower the cost of solar and renewable energy.
The project, under the Electricity Access Scale-up Project is financed by World Bank and government of Uganda with a funding of $110m.
It will largely be implemented by UECCC with one of the core mandates being the Price Subsidy Programme for Clean Energy Technologies, under which, lowering prices for off-grid solar systems for lighting and charging, clean cooking solutions and productive use of energy, will be a key emphasis.
The programme will also seek to ensure that clean cooking technologies are significantly discounted to address affordability barriers associated with the upfront cost of acquiring quality clean energy technologies.
This is expected to reduce the price of solar lantern by 60 percent, prices of clean cooking solutions by between 30 and 50 percent and enhance usage of solar energy equipment such as water pumping, irrigation and refrigeration.
The energy service companies will, under the partnership, use market-based approaches to deliver price subsidies across Uganda with the discounted sales operations expected to commence today.
The discounts will be accessed by energy service companies with beneficiaries required to present a national identification card and proof of ability to pay the price of an eligible product after the project discount.
Government continues to push adoption of clean energy across Uganda as part of a key driver that will lead to electricity access for all.
UECCC is a government-owned company that seeks to catalyse financing for renewable energy projects and increase access to clean and modern energy services.
The company has recently supported the set up a number of facilities by partnering with the private sector through provision of catalytic financing instruments and technical assistance to address barriers inhibiting access to clean and modern energy services.
It has also pooled resources from both government and development partners that positions it as a channel for catalytic financing for the development and implementation of renewable energy projects and access programmes.
