Uganda's Pilot Offers Blueprint for Faster, Cheaper & More Sustainable Electrification
The Californer/10320153

SAN FRANCISCO - Californer -- A ground-breaking pilot project in rural Uganda shows that integrated collaboration between national utilities and decentralized energy providers can accelerate electrification 3.5 times faster and reduce household connection costs by 64%, offering a proven path to expand electricity access across Africa.

Despite decades of efforts, more than 600 million people in Africa still lack reliable electricity. Uganda faces this challenge acutely, with nearly half of its population—about 23 million people—unconnected. Traditional approaches, where utilities and decentralized providers operate separately, have struggled to deliver affordable, sustainable energy to last-mile communities.

Launched in 2021, the Utilities 2.0 pilot—led by Power for All, Uganda's utility Umeme, and mini-grid developer Equatorial Power—bridges this divide. The project brought together regulators, funders, and policymakers to foster coordinated planning and investment, combining centralized and decentralized solutions.

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In the peri-urban community of Kiwumu, the pilot deployed a solar mini-grid and smart distribution system, electrifying 92% of households within six months. The mini-grid later interconnected with the national grid and was redeployed to a new off-grid site, demonstrating a flexible model aligned with long-term grid expansion.

Results surpassed expectations: households gained electricity 3.5 times faster than conventional methods, monthly consumption increased 30-fold, and connection costs dropped from over $500 to $186. Smart prepaid metering cut distribution losses in half, while customer lifetime value grew over 400%, making rural electrification more attractive to investors.

Utilities 2.0 is a replicable blueprint that could deliver 1.5 million new connections by 2030 in Uganda—14% of the country's goal—adding 70MW of renewable capacity and expanding the mini-grid market fifteenfold. It offers a practical solution to reduce investment costs, lower connection fees, and boost energy demand through productive use.

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With regional initiatives aiming to connect hundreds of millions across Africa, the Utilities 2.0 model presents a tested, scalable approach for integrating energy access efforts. However, achieving universal electricity access will require political will, policy reform, and investment aligned with national contexts.

Uganda's success demonstrates that integrated electrification is not just possible—it is essential to accelerate energy access sustainably and affordably.

For more information and detailed results, visit:
https://www.powerforall.org/resources/fact-sheets-research-summaries/utilities-of-future-how-integrated-energy-accelerates-global-access