ENERGY: d.light joins $148M off-grid solar grant initiative in Uganda

Kampala, Uganda | THE INDEPENDENT |  Solar solutions company d.light is set to help government expand access to clean and affordable solar energy across homes, businesses, and public institutions lacking reliable energy sources in Uganda in a new $148milion grant deal.

A global provider of solar solutions and financial access for low-income households, d.light is actively engaged in new grant-funded endeavors supported by the Ugandan Government, Solar Quarter reports.

With grants totaling USD$148M, d.light will subsidize prices for clean cookstoves, Solar Home Systems, and solar lanterns. Additionally, they’ll facilitate financing for low-income buyers through a credit line of up to USD$100M.

These grants operate on a results-based system, disbursed upon d.light’s achievement of predetermined sales targets set in collaboration with the Uganda Energy Credit Capitalisation Company (UECCC). This entity, wholly owned by the Ugandan government, coordinates investments in renewable energy infrastructure.

The initiatives involve the Uganda Government’s Electricity Access Scale Up Project (EASP), funded by the World Bank. Besides EASP, d.light contributes to a distinct program aiding refugees and their host communities by providing subsidized solar products and accessible finance. This project, supported by international development agencies like the German Government’s GIZ and funded by the Government of Netherlands through Energising Development (EnDev), is structured as a demand-side results-based finance initiative.

d.light initiated its operations in Uganda in 2016, offering an array of solar-powered household appliances and systems. These include solar home systems, lanterns, cookstoves, TVs, and smartphones. With an office in Kampala and over 120 employees nationwide, d.light is actively addressing Uganda’s pressing electrification challenge.

Uganda faces a stark reality with one of the world’s lowest electrification rates, leaving over 18 million Ugandans, accounting for 58% of the population, without access to electricity according to estimates by the World Resources Institute.

Nick Imudia, d.light’s CEO, emphasized the significance of reliable and affordable electricity in driving economic growth and social development. He highlighted off-grid solar solutions as pivotal in meeting daily energy needs in countries like Uganda, where electricity access remains limited. Imudia lauded government subsidy and credit programs like UECCC for extending access to clean and sustainable energy, aiming to uplift communities out of poverty and enhance their living standards.

Imudia further emphasized d.light’s commitment as an ideal partner, leveraging their seven-year presence in Uganda, established distributor network, and local resources to advance the government’s goal of enhancing energy access across households, businesses, and public institutions.

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SOURCE: Solar Quarter