How can electricity distribution reform support universal access in Uganda? Prepared under the European Union Global Technical Assistance Facility for Sustainable Energy, this July 2022 report examines that question ahead of the scheduled end of the Umeme concession in 2025.
The report recommends negotiating an improved concession agreement that includes universal access among its objectives. It proposes coordinating grid extension, mini-grids and stand-alone systems through a national on-grid concessionaire, a government-owned financing hub and an off-grid back-up provider to help reach unserved communities.
The study also develops the first financial model of Uganda’s National Electrification Strategy, covering investment, operating costs, tariff revenues and financing needs over 2021–2040. It finds that the strategy could be financially viable through a combination of commercial capital, concessional loans, grants and cross-subsidies, subject to the proposed reforms and assumptions. It also identifies the need for greater expenditure and adequate service standards.
The technical team included José Ignacio Pérez-Arriaga and Marc Buiting, with Santos José Díaz-Pastor and Carlos de Abajo contributing to the business plan. The report provides a practical reference for policymakers, regulators and development partners seeking to connect electrification targets with sustainable delivery and financing.
