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Uganda's Energy Landscape

Installed capacity (MW) Source: Energy Information Administration (EIA)


Attributes

Coined ‘the pearl of Africa’ Uganda is bestowed with productive soil, an ideal climate, and was named among the world’s top 23 travel destinations in 2023 thanks to the biodiversity of its national parks. (State.gov, CNN)

The country is rich in fossil and renewable energy resources including hydropower, biomass, solar energy, petroleum and gas. (Intech Open)

92% of Uganda’s total energy supply is derived from renewable sources, with the primary source being traditional charcoal and firewood (bioenergy). Modern renewables accounted fo for 22% of supply in 2020. (Energy Transition)

The majority of Uganda’s bioenergy is used for cooking with only 2% allocated electricity. The main source of electricity generation is hydropower. (MEMD)

Uganda’s electrification rate is among the lowest in the world at 45%, with 36% rurally and 72% in urban areas. (United Nations Development Programme, Energy & Utilities)

Uganda produces more electricity than it can consume. In 2020, it had a surplus of 532 megawatts not distributed due to lack of transmission and some damage to existing grids. (Electricity Regulatory Authority)

More Ugandan households use solar energy than electricity from the national grid. Better electrical access and connection at a lower cost remains an important directive for the government.  (Afrobarometer)

Economic landscape

Despite a series of unforeseen challenges including the COVID-19 pandemic, geopolitical conflicts and increased economic uncertainty, the Ugandan economy has remained resilient and will expand by 6% in the fiscal year 2023 -2024, boosted by petroleum industry-related investments.  (United Nations Development Programme, Ministry of Finance)

In Q3 2023 Uganda registered the lowest inflation rate in 15 months due to a decline in commodity prices including fuel. As the economy further stabilises, the average inflation rate in Uganda is forecast to decrease 2.6 percent between 2023 and 2028. (Business Insider Africa, Statista)

Opportunities

In 2015 Uganda committed to the Sustainable Energy for All action agenda with an aim to meet Uganda’s most critical energy goals while strengthening the local renewable energy private sector.  The country’s high reliance on biomass makes deforestation a serious cause for concern, with implications including flooding, drought, and emissions. SEforALL aims to cut overall emissions by 10.6 million tonnes by 2030 through a 40% reduction in national wood consumption alongside significant charcoal reduction. (United Nations, MEMD, seforall.org)

A project originally commissioned in 2020 was reestablished in 2023 to secure a high-voltage power trading increasing the connectivity exchange between Uganda and neighbouring Rwanda from 2MW to over 200MW. As the two countries face the shared constraints of low power distribution networks while producing more power than they can consume, this project highlights the significant role of HVDC transmissions in modern power systems. (Zawya)

Uganda’s economic outlook was boosted in 2023 by The Lake Albert development encompassing upstream oil projects in Uganda and Tanzania. The project is expected to start producing in 2025 with a focus on local skills developed through training programs and importantly, sustainable development. (Total Energies)