Introduction

Productive Use of Energy (PUE) refers to the application of energy—especially clean and renewable energy—to power income-generating and livelihood-enhancing activities. It goes beyond basic household use such as lighting or cooking to include activities like solar-powered irrigation, milling, refrigeration, welding, phone charging, and other small enterprises that create economic value. By enabling such productive applications, PUE enhances livelihoods, promotes entrepreneurship, supports food security, and strengthens resilience, particularly in refugee and host community settings where access to reliable energy can drive self-reliance and sustainable development.

As the global drive toward renewable energy accelerates, Uganda’s refugee settlements are emerging as testing grounds for inclusive and sustainable energy solutions. Hosting over 1.9 million refugees—nearly half in the West Nile region—these communities face a dual challenge: limited access to reliable energy and constrained livelihood opportunities. Yet, within this challenge lies transformative potential. Through the SUSTAINED Project, implemented by Mercy Corps, Oxfam, and CARE, a market-systems approach is demonstrating how productive use of energy (PUE) can power resilience, self-reliance, and economic growth among refugees and host communities. From solar irrigation and flour milling to clean cooking and phone charging enterprises, renewable technologies are becoming tools of empowerment.

Demand Activation: Turning Awareness into Adoption

Driving demand for renewable technologies in displacement settings requires more than awareness—it requires activation. The SUSTAINED project learned that behaviour change happens when information, trust, and access intersect.

Community-driven outreach using drama, radio, and live demonstrations proved most effective in shifting perceptions. Aligning campaigns with cultural and community events—such as World Refugee Day, Women’s Day, and local market fairs—ensured visibility and participation. These events provided not just exposure, but real opportunities for interaction between suppliers, agents, and potential users. One such activation in Yumbe District saw over 170 participants express interest in solar technologies, leading to 42 solar water pump installations and 12 clean cookstoves within months. This coordinated sequencing of awareness, agent training, and supplier engagement highlighted how planning can turn curiosity into adoption.

“Energy access is a foundational enabler of protection, livelihoods, and resilience. Integrating PUE into humanitarian programming enhances sustainability.” — Consortium Learning Insight, SUSTAINED Project

Market Systems That Work for Refugees

The project’s Market Systems Development (MSD) model marked a departure from traditional aid-driven distribution toward creating inclusive, self-sustaining energy markets. The Market Systems Development (MSD) approach promotes sustainable, inclusive, and scalable development by addressing the root causes of market failures rather than relying on direct aid. It strengthens local systems through private sector engagement, builds the capacity of community actors, and fosters partnerships that enable lasting change. By aligning incentives for businesses, governments, and communities, the MSD approach enhances resilience, supports women and youth inclusion, and encourages investment in underserved areas. Ultimately, it creates self-sustaining markets that drive economic growth, innovation, and long-term impact.

The approach integrates both demand-side activation and supply-side strengthening. On the demand side, Village Savings and Loan Associations (VSLAs) helped overcome affordability barriers by pooling resources to purchase solar appliances and clean cookstoves. On the supply side, Energy Service Companies (ESCOs) such as Tulima Solar and D.Light were incentivised to enter refugee-hosting markets through risk-sharing and performance-based subsidies. These combined efforts bridged the gap between interest and access—ensuring technologies reached households and farms that needed them most.

Financial Inclusion as the Engine of Uptake

Access to finance remains a critical factor in scaling PUE adoption. Refugee communities often face credit exclusion due to a lack of collateral or formal registration. Through group-based lending and savings mechanisms, communities like Paji Toto Farmers and Savings Group in Kerwa Sub-county have pioneered local financing models that unlock access to solar lamps, efficient cookstoves, and soon, solar irrigation systems.

Their internal lending structure—offering three-month loans at minimal interest—has fostered ownership, repayment discipline, and confidence in clean energy investments. Scaling this model could see groups increase savings tenfold, transforming energy access into a pathway for economic empowerment.

Gender-Responsive Energy Access

Women and youth are at the heart of energy transformation. The SUSTAINED project’s gender-inclusive procurement model made PUE technologies more accessible by offering women preferential pricing on solar cookers and pumps. For instance, under a UECCC-supported subsidy, women paid UGX 680,000 for an ECOCA solar cooker—nearly a third of its original cost. Such measures go beyond affordability—they correct systemic inequities and enable women to become energy entrepreneurs and community change agents.

Demonstration and Replication: Seeing is Believing

Demonstration sites—featuring solar water pumps and mills—served as proof of concept for PUE technologies. Over 27 farmer groups visited these sites, sparking interest in replication and investment. For the Green Valley Farmers Group, a single solar irrigation pump increased their seasonal income from UGX 200,000 to UGX 1.4 million, proving that renewable energy can directly drive livelihood gains.

“With the right tools and a shared vision, transformation is not only possible, but also sustainable.” — Green Valley Farmers Group, Kerwa Subcounty

Role of Oxfam

Together with consortium partners Care and Mercy Corps, Oxfam plays a key role in advancing Productive Use of Energy (PUE)  using Market Systems Development (MSD) approach by promoting market-based renewable energy solutions that enhance livelihoods and resilience in displacement and rural settings. Through projects like SUSTAINED, it mobilises communities, supports financial inclusion, empowers women and youth, and fosters partnerships with private-sector actors to expand last-mile energy access. Oxfam also drives policy advocacy and coordination to build inclusive, gender-responsive, and sustainable energy markets.

The Way Forward: Building Energy-Enabled Livelihood Systems

While success stories abound, challenges persist—affordability, limited technical skills, weak supply chains, and behavioural inertia continue to slow progress. To sustain momentum, stakeholders must:

•Scale behaviorally informed demand activation using evidence-based outreach.
•Expand access to affordable finance, including PAYGO and seasonal loans.
•Strengthen supply chains and local technician training.
•Institutionalize gender-responsive and climate-smart agriculture practices.
•Leverage carbon financing to sustain subsidies and align with Uganda’s climate commitments.

Conclusion

The SUSTAINED project proves that productive use of energy is not just about powering devices—it’s about powering lives. When refugees access energy for farming, processing, and enterprise, they move from dependency to self-reliance. By linking community finance, private sector innovation, and gender inclusion, Uganda is showing that displacement does not have to mean disempowerment. With the right market systems and demand activation strategies, refugee settlements can become hubs of clean energy innovation and inclusive growth.

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