Publication - Power Africa: Off-Grid Solar Market Assessment Uganda

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Title
Power Africa: Off-Grid Solar Market Assessment Uganda
Publisher
USAID
Author
USAID
Published in
July 2022
Abstract
This brief by Power Africa provides insights into the opportunities and risks associated with Uganda’s off-grid solar energy market and gives companies, investors, governments, and other stakeholders a deeper understanding of the market. While there are other market assessments conducted by other stakeholders (i.e. development partners), Power Africa recognizes a gap in the available market assessments. Bridging the gap, this brief is characterized by the following:
  • This brief provides an accessible review of solar home systems (SHSs), mini-grids, productive use of energy, and other aspects of the off-grid solar value chain. Additionally, the brief includes information on policy and regulatory issues, and the structure of the energy sector.
  • This brief draws upon sales and investment data from GOGLA in order to keep pace with the ever-changing dynamics of the off-grid solar sector.
  • Insights in this brief help Power Africa plan and prioritize activities across work streams of policy and regulations, market intelligence, business performance, access to finance, and cross-sectoral integration throughout sub-Saharan Africa.

Uganda

Uganda is a landlocked country in East Africa, with a gross domestic product worth $36 billion in 2020 and a projected growth-rate of 6.63 percent. Uganda’s population stands at 41 million, with 27 percent living in urban areas. Uganda has one of the youngest and most rapidly growing populations in the world: 54 percent of the population is younger than 18. The government of Uganda expects rapid population growth along with demand for jobs, housing, health, and energy, presenting great potential for renewable energy, particularly off-grid solar, to be adopted rapidly.

Sixty-eight percent of Ugandans work in agriculture. Trading employs 10.4 percent of the population and manufacturing four percent. Uganda is richly endowed with natural resources, including large deposits of crude oil, vast forests, large bodies of water, natural hot springs, precious minerals, and year-round sunshine, with the total renewable energy potential estimated at 5.3 GW, of which only 1,364.6 MW had been installed in 2021.

Full report: https://www.usaid.gov/sites/default/files/documents/Power-Africa-Market_Assessment-Brief-Uganda.pdf
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