Scaling up rural electrification in Uganda: innovative technical and financial solutions being explored to address access challenges

Abstract

This thesis focused on studying the most technologically feasible ways of ensuring electricity access to the poor in peri-urban and rural areas. The research noted that there are gaps in government’s rural electrification efforts and therefore private companies can complement them. This assistance would effectively play out in the government’s overall plans of ensuring 100% electricity access in Uganda by 2040. However, these companies lack capital investment yet the electricity consumers continue to face high tariff costs, among other challenges. To study this dilemma, the researcher used several data collection methods such as in- depth interviews targeting electricity consumers and executive managers of mini grid Energy service companies (ESCOs)to find detailed information about the problem. The study also used generated data from potential strategic investors. According to the findings and recommendations, ESCOs and potential investors need to improve their dialogue because they are key stakeholders in power distribution, and this should also be a point of further study. Mini grid ESCOs also need to build competencies in customer relationship management and rural distribution practices. The study found that ESCO managers can provide data on creditworthiness of customers to prospective strategic investors. ESCOs felt that utility companies and Independent Power Producers are the most likely candidates for becoming strategic investors. These recommendations should be adopted and developed for effective implementation.