Stanbic, stakeholders commit to address energy challenges

In a move toward a sustainable future, Stanbic bank and key stakeholders from the energy sector have committed to addressing pressing multidimensional energy challenges of lack of affordable clean energy and reliable energy sources among others.

The move focuses on streamlining financing for the generation and distribution of renewable energy as a quick of transitioning from fossil fuels.

This was disclosed at the Atanbic bank leadership Forum and breakfast themed building a resilient energy supply mix for Uganda.

Uganda is facing multidimensional energy challenges such as the lack of affordable clean energy, reliable energy infrastructure and failure to attract investment into the energy sector.

"When you bring stakeholders from different sources of energy together to dialogue on energy mix and sustainability it helps in exchanging ideas on how we can address energy challenges, support structural reforms, coordinate and streamline financing for the generation and distribution of energy. We are having meaningful shifts in energy transition and we are going to support this through investing cumulative 250-300 million rands by 2026 in our three year project focusing on renewal energy," Paul Muganwa, Head, corporate and investment banking, Stanbic Bank said.

Climate and environmental issues associated with deforestation for charcoal and firewood add to the complexity.

Anne Aliker, the head of client coverage, corporate and investment banking at Standard Bank, says Uganda needs to support multisectoral power producers to adapt to modern energy systems like natural gas, hydro, geothermal, wind and solar energy for home application to accelerate the transition to renewable energy, a crucial step in mitigating climate change.

Eng. Irene Batebe, the permanent secretary of the ministry of Energy and mineral development, is optimistic that these efforts are expected to play a pivotal role in shaping the future of energy, ensuring that the transition to renewables is both swift and inclusive.

According to Africa Energy Futures, government set in motion an ambitious target to increase Uganda's installed capacity from 1274 Megawatts to 41738 Megawatts by 2040.

The government also earmarked the exploitation of Uganda's mineral and oil and gas endowment as a major source of growth in the medium term.

Due the the need to diversify Uganda's energy mix and fulfill the country's climate change commitments , the government's emphasis will be on renewable forms o energy such as wind, solar and biogas.

Electricity accounts for only 2% of Uganda's total energy consumption.

Electricity grid is already 99% renewable with only a small amount of oil based generation used in critical situations.

By aligning financial incentives with long-term sustainability objectives, stakeholders believe it is possible to unlock significant private sector investment in renewable energy infrastructure.