CONTEXT
Uganda grapples with acute energy access challenges, marked by one of the world's lowest per capita electricity consumption rates and over 90% reliance on biomass fuel for cooking. Despite the country's vast solar potential, many households, particularly in refugee camps, lack access to electricity.
Private sector growth in off-grid solar distribution, supported by government policies, has been instrumental in increasing energy access, yet significant barriers across supply, demand and enabling environment still persist, including lack of retail and supply chain networks, high operating costs, lack of adapted products and low purchasing power of refugees. Furthermore, existing energy policies lack clear measures for small-scale solar markets, gender considerations, and marginalized communities, presenting obstacles to reliable and well-funded project implementation.
Market dynamics are further complicated by underdeveloped markets in hard-to-reach areas, such as Refugee Hosting Districts (RHD), which hinder private sector entry and limit the availability of affordable energy solutions. Further compounding the challenge of reaching customers, energy providers struggle to access finance since most funding available locally is through commercial banks that provide debt at high interest rates with collateral requirements that energy providers cannot meet. Humanitarian response, when providing free distributions of goods and services, distort markets, discouraging private sector investments, impeding scalability and sustainability. Many refugees struggle to afford clean energy solutions given the low household incomes and often they are not aware of benefits of using clean energy products. Lack of strict policy implementation and regulation enforcement has contributed to an increase in sub-standard products that are significantly cheaper than durable clean energy solutions hence distorting consumers perception of energy solutions.
In response to the challenges above, Mercy Corps, CARE, and Oxfam, are implementing the SUpporting STronger Access to INnovative Energy Solutions in Displacement Settings (SUSTAINED) project. SUSTAINED will be implemented in collaboration with 3 refugee-led organizations (RLO), 1 Financial Service Provider (FSP), and 3 Energy Services Companies (ESCO).
ABOUT THE PROJECT
Oxfam in Uganda in partnership with Mercy Corps, and CARE are implementing a 12-month initiative to ensure that refugees and vulnerable host communities in Uganda, especially women and youth, have increased access and utilization of clean, reliable, and affordable energy products and services, thus sustainably increasing their overall standard of living, health, and livelihoods.
The Embassy of the Kingdom of the Netherlands in Kampala (EKN) funded project brings together the global leadership, influencing capacity, technical expertise, and implementation experience necessary to partner with an extensive array of stakeholders to adapt, and scale evidence-based interventions in Bidi-Bidi, in the Yumbe district, of West Nile Uganda.
PROJECT AIM
Refugees and vulnerable host communities in Uganda, especially women and youth, have increased access and utilization of clean, reliable, and affordable energy products and services, thus sustainably increasing their overall standard of living, health, and livelihoods
EXPECTED RESULTS
- Increased access to off-grid solar (OGS), productive use of energy (PUE), and clean cookstoves (CCS) by households and enterprises in refugee hosting areas - DEMAND activation.
- Foundations for sustainable market for OGS, PUE, and CCS established in the Refugee hosting areas - SUPPLY SIDE barriers removed.
- Foundations for enabling policy, regulatory and coordination environment for off-grid renewable energy solutions improved in refugee hosting areas - ENABLING ENVIRONMENT established.
IMPLEMENTING PARTNERS
- CARE
- Mercy Corps
KEY STAKEHOLDERS
- Financial institutions
- Energy service providers
- Refugee led organisations
PROJECT DURATION
- 1 Year (12 Months)
TOTAL BUDGET,
- €1,000,000
FUNDED BY.
- Embassy of the Kingdom of the Netherlands in Kampala (EKN)