Uganda National Renewable Energy & Energy Efficiency Alliance

Shs10b in Credit Support from UECCC boosts Electricity access

More than Shs10.3b disbursed through the Uganda Energy Credit Capitalisation Company (UECCC) in credit financing has accelerated access to electricity in the country. Access to electricity in Uganda currently stands at slightly over 50 per cent with 25 per cent connected to the grid. Formed in 2009, UECCC was created to facilitate renewable energy (RE) development through the provision of financial, technical and other support to address financing barriers inhibiting re-development, with particular focus on enabling private sector participation.

This was after government adopted the Power Sector Restructuring and Privatisation Strategy (PSRPS) to reform the power sector in 1999, with the view of attracting investment into the power sector, both in generation and distribution, to underpin economic growth in Uganda. However, private sector participation in the power sector was hampered by a number of barriers to investment, including lack of appropriate financing (long term debt and concessional financing) in the local market to meet the financing requirements of renewable energy projects and programmes.

In addition, there was inadequate technical capacity on the part of local financial institutions to finance energy projects and lack of early stage financing and technical assistance to unlock energy generation and distribution projects. UECCC was to implement its mandate through serving as a credit support institution, working with various partners, including financial institutions and development partners, among others, to provide innovative financing options for renewable energy and/or rural electrification projects on business principles.

UECCC, working with different financial institutions, facilitates lending to energy projects and programmes through the solar loan project, solar company working facility and the power connection loan programme. In conclusion, as an investor, entrepreneur or household, it is important to consider the aforementioned programmes which are priority funding areas for UECCC in the journey of increasing access to electricity

By Specioza Kimera Ndagire

Other Sector News

TRAIN-THE-TRAINER

  • 5-day seminar
  • In-depth trainings on technical, financial and didactic topics
  • Group work, discussions, as well as computer-based and interactive exercises

Target group:

  • Trainer with previous experiences in access to finance education, banking, clean energy or climate finance
  • Professionals who wish to enhance their financial evaluation and didactical skills in order to become a trainer in the field of green energy/climate finance

After the TtT-Seminar, participating trainers are:

  • Provided with a starter kit of slides, exercises and additional tools for trainers
  • Equipped with hard facts and soft skills to develop their individual training
  • Capacitated to undertake courses autonomously

12-WEEK ONLINE TRAINING

Topics addressed include:

  • Political and legal frameworks of the energy market in Uganda
  • Characteristics of decentralised RE markets in sub-Saharan Africa
  • Technologies for small- and medium-scale renewable energy applications
  • Business models for decentralised RE technologies
  • Business plan development
  • SME Finance and loan assessment cycle
  • Project Finance / RE and EE project evaluation
  • International climate finance options
  • Accessing the Green Climate Fund

Implemented through:

  • RE and EE case studies from Uganda, Senegal and other SSA-markets
  • Live expert-led webinars to discuss specific questions