The government of Uganda, with support from the World Bank, acquired funding of $638 million to implement the Energy Access Scale-up Project (EASP), the Minister of Energy and Mineral Development, Ruth Nankabirwa, told a press conference at Uganda Media Centre in Kampala on Friday. 

Under EASP over 1,360,000 households, industrial Parks, SMEs, refugees, and host communities will get connected, she further revealing, adding that the project implemention will start this January.

According to the World Bank, the implementing agencies for this project are the Ministry of Energy and Mineral Development (MEMD) and Uganda Energy Credit Capitalisation Company (UECCC). 

The UECCC says it will implement the Financial Intermediation component that will provide credit support instruments for provision and access to finance to acquire solar systems, clean cooking technologies, and building capacities for partners like CSOs in the sector. 

Nankabirwa said the EASP will be implemented alongside other existing initiatives such as the hybrid connection policy and the rebate policy.

“In December 2022, I launched the hybrid customer connection financing Framework under which the Government reduced the cost of a no-pole new customer connection from Shs720,883 to Shs470,000 through a subsidy of Shs250,883 for each no-pole connection.

“In addition to the subsidy, the Government of Uganda, through the Uganda Development Bank, provided a credit line of Shs270,000 per new connection for those who are unable to pay a lump sum of Shs470,000.

“Ugandans whose houses are located near an electricity pole can now make a down payment of Shs200,000 to get connected to electricity and clear the balance of Shs270,000 through a 15% part payment deducted on their energy purchases over a period of eight years.

“I am happy to report that this Framework has after a year received 36,855 applications and 27,724 have already been connected to electricity supply as of December 2023,” the minister said.

Meanwhile, the MEMD and Electricity Regulatory Authority (ERA) have announced a 1.6 percent power reduction for the first quarter of 2024. 

The Chairperson of ERA, Sarah Wasagali said a tariff reduction of 1.6% is equivalent to a saving of Shs40.321 billion to electricity consumers.

Eng. Ziria Tibalwa Waako, the Chief Executive Officer of ERA, emphasized the Authority’s efforts towards affordability of electricity through a reduction in tariffs in this quarter.

Nankabirwa said the reduction in power tariffs ‘speaks to the government’s efforts for progressive gradual end-user tariff reduction to support industrialization for socio-economic transformation and improved welfare of society.’