Led by local electricity distributor, Umeme, the companies will pilot the project dubbed Utilities 2.0 Twaake, in conjunction with several leading Uganda-based distributed renewable energy companies, to provide affordable, reliable, and clean power for all.
of global energy sector leaders coordinated by Power for All and funded by The
Rockefeller Foundation has launched an integrated energy pilot in Uganda aimed
at increasing power access and reduce the cost of connection.
Led by local
electricity distributor, Umeme, the companies will pilot the project dubbed
Utilities 2.0 Twaake, in conjunction with several leading Uganda-based distributed
renewable energy companies, to provide affordable, reliable, and clean power
private sector companies are Africa
Mini-Grid Developers Association (AMDA), CLASP, CrossBoundary, East African
Power, EnerGrow, Equatorial Power, Nxt Grid, Rocky Mountain Institute (RMI),
University of Massachusetts Amherst, Duke and Makerere Universities.
also involves providing asset financing which is aimed at studying the effect of
asset ownership on electricity consumption.
of Energy and Mineral Development says it plans to increase access to power
from the current 52% to 60% by 2025 and 100% by 2030.
28% of Ugandans access to power on the national grid, with another one quarter
using other sources like standalone solar systems.
remains among the countries with some of the lowest electricity accessibility,
requiring connecting 10 million people today if the country is to meet the
World Bank universal access measure.
the Bank, among the 20 countries with the largest access deficits, Uganda,
Kenya and Bangladesh showed the greatest improvement in electricity access
since 2010, with annual electrification growth rates above 3 percentage
largely driven by an integrated approach that combined grid, mini-grid and on-grid
estimated that with the average cost of grid extension connection at $1,400 (5 Million Shillings) if grid extension was the sole method of service provision, the
required investment would likely be $7 billion.
Utilities 2.0 Twaake pilot is designed to cut this cost by at least half, by
relying on integrated energy, according to a joint statement.
energy combines centralized and decentralized technology (including solar home
systems, mini-grids, grid, and smart grid systems).
recent studies by Power for All and Duke University, connection costs can be
reduced by 50 percent by reducing upfront capital cost by leveraging a
utility’s ability to access cheaper capital while increasing the value of the
customers through productive use applications that drive energy demand.
integration, the partners hope that Uganda’s energy customers will derive more
benefit for each kilowatt consumed.
integrated energy pilot is deployed across two sites, Nyenje (on the grid) and
Kiwumu (non-grid site), in Mukono District.
Nyenje has been operational since July 2020 with over 26 percent of businesses
to date receiving income-generating assets for productive use.
that received asset financing increased their electricity consumption by over
50% and business revenues have increased by over 70%,” says the
the pilot has deployed a 40kW mini-grid (at peak), to power 300 households and
60 local businesses.
percent of the businesses in Kiwumu will receive asset financing to assist
businesses with productive use. By helping customers move beyond access with
appliance financing and financial literacy, the pilot project is expected to
deliver jobs and improve incomes across both villages.”
partnership with Makerere University and several Ugandan companies, Power for
All will evaluate the socio-economic benefits of integrated energy and the
effectiveness of the business models tests in the pilot.
the government, the consortium aims to achieve Uganda’s first successful
interconnected mini-grid in June 2022.
It will also
identify approaches to replication and scale to accelerate energy access and deepen
the benefits to Ugandans.
centralized nor decentralized energy can end energy poverty alone. However,
through partnership and leveraging comparative strengths, traditional utilities
and innovative DRE companies can create a new frontier in the fight to end
energy poverty,” said Kristina Skierka, Power for All CEO.
coming in to bridge the gap of delivering clean energy to the households. This
partnership will ensure that we deliver clean energy to the population in this pilot
phase, pick lessons and use it to scale up. The partnership will assist to
drive Uganda’s electricity agenda,” said Selestino Babungi, Umeme Managing