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Apart from the carbon emissions associated num for the past decade, had plummeted to 5.3%
with the majority of these energy sources this article per annum in 2017. This will quickly be met and
singles out deforestation as the most severe dan- overtaken by the leap in supply during the com-
ger to the environment in Uganda. Between 1990 ing one year if not earlier. The supply will strongly
and 2012 forest cover in Uganda decreased by 40% be augmented by off-grid solar based systems,
to 29,880 sq Km. Firewood, inefficiently produced which in recent times has received a shot-in-the-
charcoal (45% conversion on energy basis) and out- arm from the now abundant green bucks seeking
right quest for agricultural land have left the coun- investment in green energy sources as well as the
try bare and in need of urgent reforestation, which rapidly dropping cost of the solar technology.
is not happening any time soon in any significant
amounts. However, the latter is only a short to medium
term solution for the hard to reach areas unless
Fortunately, the country is blessed with renew- equal effort will be expended to productive use
able sources for generation of electricity such as of solar systems. The deployment of most of the
large hydro sites, mini and small hydro sites, solar stand-alone Solar Home Systems (SHS) is mainly
and geothermal potential. Government’s prudent growing rapidly in urban and peri-urban areas
policy of liberalization (in spite of this policy’s cur- due to awareness and availability compared to
rent criticism) has led to rapid interest to invest in the deep rural areas. Grid connected solar (and its
generation from private sector developers/inves- sister net-metered solar) is no different from the
tors. The nation’s generation installed capacity from traditional grid supplied generation from large
such resources is set to double from the current hydro or other renewables.
930MW (with peak demand a mere 630MW inclu-
sive of exports) to above 1,800MW within the next Off-grid distribution networks have been
twelve months. While growth in electricity demand found expensive (and maybe unsustainable) for
is high (estimated at 10% per annum) this surge in the rural communities. They are often started
generation capacity will need to be availed to the with heavy short-term subsidization from donor
over 78% Ugandans with no direct access to modern agencies. A combination of a lack of formal tariff
electricity. approvals and being unsolicited in set-up these
off-grid systems have proved costly to the rural
Unfortunately, the country’s planners or imple- folks; consumer tariffs typically are twice those on
menters of government plans have taken a lackluster the main grid and supply quality often lower.
attitude to disposing of the “excess supply” coming
our way to the populace. Firstly, it was assumed that The higher cost has many causes such as
the private sector, especially UMEME Limited, will limited connected client numbers on the system
enthusiastically invest in the distribution network and relatively larger energy losses on a smaller
and the rest will be done by the rather feeble efforts off-grid. Rural consumers initially enthused to get
of the Rural Electrification Agency (REA) in this di- connected quickly discover that the consumption
rection. Some are optimistically looking at the ev- price is beyond their meagre incomes leading to
er-delayed major projects (Standard Gauge Railway, early disconnections. Matters are compounded
the 22 Industrial Parks to name two) to take up the by the eventual arrival of the often-cheaper na-
excess power, relegating the needs of the unserved tional grid electricity. Consumers on the off-grid
78% of the nearly 40 million Ugandans to terms like cannot wait to get on the national grid.
“low value future clients”. These unserved Ugandans
could become useful consumers if guided by ap- The above presents regulatory conflicts:
propriate government effort into productive use of should off-grid systems be allowed and at what
electricity. tariffs? Or should the affected community be left
unserved to wait for the arrival of the national
The UNMET Energy Distribution Challenge grid?
For Uganda
It is believed that the lack of a clear regula-
The growth in demand estimated at 10% per an- tory framework for the off-grid systems explains
