Power sales projected to grow to 4,929 gigawatts
Demand for electricity is expected to grow by a huge margin in the next four years. PHOTO | FILE
Total energy sales in the domestic market are projected to grow by 7 per cent on average per year from about 2,598 gigawatts per hour in 2016 to 4,929 gigawatts by 2025, according to Rural Electrification Agency.
The projections are contained in the 2016/25 Cost Generation Plan, which also indicates that the larger share of power will be among Industrialists.
The growth forecasts reflect the general positive outlook of Uganda’s economic growth, which, however, is hampered by high electricity tariffs.
According to the World Bank report, low affordability and willingness to pay for electricity continues to be a stumbling block in economic growth.
The report also indicates that majority of Ugandans live in rural settings much of which are poverty stricken surviving on between or less than $0.88 and $1.04 per person per day.
Therefore, REA, noted in the report, it has been difficult to push consumption into rural areas but there is optimism premised on increased generation capacity.
Uganda currently has a power supply and is expected to grow further with completion of both large and small scale projects.
REA also noted that whereas there has been a lot of sensitisation, especially in rural areas people who can afford, are less informed about electricity and do not trust or have a skewed perception of values and benefits.
Mr David Duli, the country director of World Wide Fund (WWF), a non-governmental organisation that promotes use of clean renewable energy, said there was need for government to address concerns by rural dwellers through policy and regulation.
“A clear policy framework for mini-grid contribution will increase private sector interest and financing. This framework should have energy access targets and potential mini-grid sites,” he said, noting government must also set the contribution of mini-grids to the national electricity pool.
Mr Duli also noted that government must simplify the licensing process, expound on requirements for any person seeking to acquire a license.
Government has put so much focus on hydro power even as there are a number of alternatives such as solar.
Where some of these channels such as solar have benefited from government policies, according to Mr Duli, more is still required, especially the fragmented nature of the regulatory environment.
Government, he said, must have clear regulatory provisions to protect private sector investments that conflict with the arrival of the main grid in a certain area that had previously been inaccessible.
