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Uganda’ energy transition path

Balancing opportunities for sustainable development with challenges of governance, corruption, inconsistent policies, resource limitations

COMMENT | CHRISTOPHER BURKE | Uganda, similar to many Sub-Saharan African countries, faces significant challenges in energy policy development due to economic, environmental and political factors. While Uganda has made progress in energy development, a substantial portion of the population still lacks reliable electricity access. Frequent power outages hinder economic growth, impacting businesses, industries and households.

Uganda’s Ministry of Energy and Mineral Development (MEMD) last year completed a review of its 2002 Energy Policy and 2007 Renewable Energy Policy addressing issues to foster inclusive development, reduce poverty and mitigate climate change. Though Uganda generates a significant amount of electricity, nearly 60 percent of the population remains without power, especially in rural areas. This gap limits opportunities in education, healthcare and economic growth, where electricity is crucial. Expanding the grid and supporting off-grid solutions such as solar are essential for universal access. Through the World Bank-funded Electricity Access Scale-Up Project (EASP), Uganda aims to add over 1 million on-grid and 150,000 off-grid connections by 2028 and distribute 300,000 clean cooking solutions to rural households.

Although Uganda possesses extensive renewable energy potential, fossil fuels still dominate in transport and cooking sectors. Balancing oil infrastructure and renewable projects is challenging, as oil discoveries in the Albertine Graben offer economic opportunities, but risk an over-reliance on fossil fuels. Uganda must balance these developments with a transition to cleaner energy to avoid vulnerability to global price fluctuations and a high carbon footprint.

Uganda has vast solar potential with average solar radiation around 5.1 kWh/m²/day. During COP28, Minister of Energy Ruth Nankabirwa unveiled an Energy Transition Plan emphasising solar power as a low-cost energy source. The country’s solar output has grown significantly from 17 MW in 2012 to nearly 100 MW by 2022. Hydropower remains the core of Uganda’s energy system contributing over 1,400 MW to the national grid benefitting from its location at the source of White Nile. Nevertheless, renewable energy faces challenges including limited investment, inadequate infrastructure and regulatory hurdles. Charles Owori, Director of legal and regulatory affairs at Orijtech Uganda notes the need for clearer, consistent policies to attract private investment.

Financing renewable resources—solar farms, hydropower and grid expansion—requires funds beyond Uganda’s national budget. Development partners including the World Bank, African Development Bank and China Exim Bank have supported energy projects, but greater private-sector involvement is essential. Irene Bareete, Permanent Secretary at MEMD, advocates for public-private partnerships (PPPs) and innovative financing to fill the gap; however, Uganda’s energy sector must address investment risks linked to land acquisition, regulatory uncertainties and high tariffs.

The recent policy review underscored the need for a framework to regulate electricity sales, enforce renewable energy standards and increase regulatory investment. Strengthening Uganda’s regulatory environment is essential to attracting investment and successful project implementation agrees John Bosco Mweru of the United Nations Capital Development Fund. Alignment with international norms and procedures also remains crucial for investor confidence in both renewable and non-renewable sectors.

Expanding Uganda’s energy mix with renewables such as solar and wind alongside energy storage will boost energy resilience. Regional cooperation through the East African Power Pool, established in 2005, could improve energy security by coordinating cross-border power trade and grid connections. The shift toward renewables presents political and social complexities. Uganda faces pressure to develop oil resources for economic growth while upholding global climate goals.

Energy development in Uganda has struggled with governance issues, corruption, inconsistent policies and resource limitations. A stable regulatory framework that fosters long-term investment in renewable and non-renewable energy is vital. Clear and transparent policies are necessary to support sustainable energy development. According to Bwesigye Don Binyina, Executive Director at Africa Centre for Energy and Mineral Policy, inclusive policies emphasizing community participation and benefit-sharing—especially in rural areas—are critical to gaining local support for energy projects. However, Binyina points out that the impact of the government’s Renewable Energy Policy that promotes community involvement and addresses poverty has been limited.

It is essential to consider the socioeconomic impacts on communities reliant on traditional energy sources such as fossil fuels and biomass as Uganda transitions to a global energy framework. Jolly Kayiita, Natural Resources Management Specialist at World Vision Uganda, stresses the need for an equitable transition framework to protect vulnerable populations. This framework should prioritise green job creation, worker reskilling and inclusive energy access.

Building a sustainable energy system requires Uganda to diversify its energy sources, attract investment and address rural needs. Coordinated efforts from government, private sector and international partners will be essential to ensuring all Ugandans have affordable, reliable and clean energy access.

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Christopher Burke is a senior advisor at WMC Africa, a communications and advisory agency located in Kampala, Uganda.

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