Govt injects over Shs407 billion into renewable energy solutions

The government has injected $110 million (about Shs407 billion) to increase the use of renewable energy technologies by reducing the price of off-grid solar systems for the community.
The managing director for Uganda Energy Credit Capitalization Company (UCCC), Mr Roy Nyamutale Baguma said the government’s intention is to catalyze the demand and supply of clean energy solutions by making sure that the prices of renewable energy gadgets are reduced.

“We are partnering with energy service companies, more specifically, to address the affordability constraints at the household level. In this particular instance, we are pleased to advise that we are signing contracts with 87 companies,” he said while signing an agreement with 87 companies to extend power services to the community.

“These companies are dealing in off-grid solar, they are dealing in clean cooking solutions, they are dealing in productive uses of energy equipment and they will convey our price discounts or price subsidies to the public. It is going to be done using market-based approaches and there is nothing, there is no interference of any party on any side,” Mr Nyamutale stressed.

He revealed that the $110 million is part of the $600 million grant that the government acquired from the World Bank to promote access to renewable energy technologies and also increase access to electricity, especially in the hard-to-reach areas.

“We are going to see prices for off-grid solar, specifically for lanterns, we are knocking down the price by 60 percent. For the solar home systems of two lights, we are knocking down the prices by 50 percent,” he said.

“Clean cooking solutions are powered by different energy sources, like ethanol, liquefied petroleum gas, biogas, solar, briquettes, the range and also electric pressure cookers, the range is between 30 and 50 percent,” he added.

He noted that this is part of the government’s move to respond to the Sustainable Development Goal Number Seven (SDG7), which provides that the country should deliver affordable, reliable, and sustainable energy for all by 2030.

 “Charcoal is a challenge, Wood is a source of disputes in the rural areas. And so we want them to embrace liquefied petroleum gas, use of ethanol, and use of solar,” Mr Nyamutale clarified.
The Managing Director of d.light Uganda, one of the companies going to extend the services to the community Mr. Dauglas Gavala said, the signing of this contract has been long overdue and it’s going to impact the community, especially in the herd-to-reach areas.

“One of the key things that need to be addressed is accessibility, availability, and affordability,” he said, adding that they have so far impacted over six million Ugandans.