The government, through the Uganda Energy Credit Capitalisation Company (UECCC), will officially launch the Price Subsidy Program (Results-Based Financing Facility) for Clean Energy Technologies on Thursday, December 5, 2024.
This initiative, supported by Shs400 billion in working capital, aims to boost access to clean energy solutions, particularly in rural and remote areas.
According to UECCC, only 4% of households in Uganda currently use clean energy. The program will offer significant price subsidies on various clean energy products to bridge this gap.
Speaking at a press briefing on December 2, 2024, at the Uganda Media Centre, UECCC Managing Director Roy Nyamutale Baguma detailed the program’s benefits.
“Ugandans will enjoy substantial discounts for eligible clean energy technologies. Solar lanterns will have a 60% discount, while solar systems with two lights will see a 50% price reduction. Clean cooking solutions, including those powered by solar, briquettes, ethanol, biogas, and liquefied petroleum gas, will receive discounts ranging from 30% to 50%,” Baguma said.
Additionally, productive-use energy equipment such as water pumps, irrigation systems, refrigeration units, and grain mills will be discounted by up to 60%.
The program will be implemented in partnership with 67 Energy Service Companies (ESCOs) pre-selected in collaboration with the World Bank.
These companies have been vetted to ensure they supply quality products certified by the Uganda National Bureau of Standards (UNBS).
“We’ve ensured only reputable companies participate, and the list of partners will expand as more companies show interest. Our goal is to guarantee wide geographical coverage across Uganda,” Baguma explained.
The initiative emphasizes affordability and accessibility. Buyers need only present a National Identification Card and pay the discounted price to access clean energy products.
The program will also incentivize ESCOs to register sales in remote areas, furthering the mission to expand electricity access. “We are committed to encouraging all Ugandans to embrace this program and access clean, reliable, affordable, and sustainable energy,” Baguma emphasized.
UECCC plans to conduct nationwide sensitization campaigns to ensure maximum awareness and participation.
Baguma expressed confidence in the initiative’s impact, stating, “This project will significantly contribute to Uganda’s socio-economic transformation by improving livelihoods through enhanced access to modern energy solutions.”
As a government entity, UECCC plays a pivotal role in catalyzing financing for renewable energy projects by facilitating private sector participation and addressing financial and technical barriers.
“With this program, the government aims to accelerate Uganda’s transition to clean energy, aligning with global efforts to combat climate change while improving energy access for underserved populations,” added Samwel Ochanya, Project Manager for the Electricity Access Scale-Up Project.