[{"bbox": [93, 168, 1137, 491], "category": "Text", "text": "The EU is one of the most important development partners in the energy sector in Uganda. During the last 5 years, the EU has contributed through a large portfolio exceeding EUR 100 million with a leverage of around EUR 1 billion. This includes programmes such as GET Fit, ElectriFi, the piloting of mini-grids, rural electrification, last mile interventions, and hydro-power plants amongst others. EU funded technical assistance has supported the country to build a solid legal and regulatory framework that favours renewable energy (with a focus on mini-grids). Currently underway is advisory support on the distribution sector reform and drafting of a financial plan linked to the national electrification strategy. The EU is also a member of a specific task force group providing support to the Government on the current ongoing reform of the sector. The EU maintains excellent working relations with development partners through the energy working group and collaborates closely with EU Members States, in particular France and Germany, to set common funding initiatives and to strengthen coordination in the spirit of the Team Europe approach. Moreover, contacts with European Development Financial Institutions are being intensified in the quest for raising opportunities to deploy EFSD+ guarantees."}, {"bbox": [85, 503, 341, 536], "category": "Section-header", "text": "## 2.2 Problem Analysis"}, {"bbox": [96, 550, 1106, 605], "category": "Text", "text": "Promoting sustainable and inclusive growth and jobs cannot be achieved in the absence of affordable, reliable, secure and sustainable energy. Therefore, the action is aiming to bring solutions to the following problems:"}, {"bbox": [106, 629, 1134, 683], "category": "List-item", "text": "- Low access rate to clean, sustainable and affordable energy in the country. 45% of a rapid growing population is lacking access to energy of which 84% is located in rural areas."}, {"bbox": [106, 683, 1134, 738], "category": "List-item", "text": "- Low level of industrialisation and economic activity in particular in rural areas which is reflected in the low consumption of energy per capita, 215kWh/year against a Sub-Saharan Africa average of 552kWh/year."}, {"bbox": [106, 737, 1134, 841], "category": "List-item", "text": "- High cost of energy for grid connected consumers as a consequence of a low number of customers and low consumption to share the cost of electricity production, transmission and distribution. The estimated investment cost in electricity transmission and distribution to electrify the total of Ugandan population exceeds USD 6 billion."}, {"bbox": [106, 841, 1134, 950], "category": "List-item", "text": "- Extremely high deemed energy (EUR 27 million in 2020) as consequence of a lack of and/or inappropriate planning on transmission and distribution that is overstretching the sustainability of the electricity sector and is increasing the financial burden for both the Government and the electricity consumers. This problem is likely to increase with the commissioning of the new Karuma hydro-power plant (with 600MW capacity)."}, {"bbox": [106, 948, 1134, 1026], "category": "List-item", "text": "- Electrification exclusively by means of grid extension is very expensive in rural areas due to Uganda's sparse population. Renewable and decentralised mechanisms are required to provide alternative and cheaper solutions."}, {"bbox": [106, 1026, 1134, 1109], "category": "List-item", "text": "- A tariff ceiling equivalent to $0.30 kWh for mini-grids, fixed by the regulator to grant affordability of electricity, is not cost reflective. Therefore, it is difficult to scale-up deployment of mini-grids without the right financial support."}, {"bbox": [106, 1107, 1134, 1162], "category": "List-item", "text": "- Lack of opportunities in rural areas to generate new income opportunities and jobs for a rapidly growing population but in particular for youth and women empowerment."}, {"bbox": [106, 1160, 1134, 1267], "category": "List-item", "text": "- High pressure on natural ecosystems and resources, in particular forests, as consequences of a lack of alternative sources of energy for cooking and heating. Unsustainable exploitation of charcoal for cooking is leading to the depletion of the last remaining patches of natural forests in the country while aggravating the impact of climatic change."}, {"bbox": [106, 1266, 1134, 1321], "category": "List-item", "text": "- Low resilience of rural populations to climate change induced problems, in particular to more recurrent, longer and more severe dry spells."}, {"bbox": [106, 1319, 1134, 1426], "category": "List-item", "text": "- Poor access to basic social services in rural areas with a particular attention for schools and health centres where minimum and standard conditions for functioning are not met. Access to digital services is equally important to connect the population to Government services and to level the playing field of access to information and opportunities for rural populations."}, {"bbox": [106, 1425, 1134, 1480], "category": "List-item", "text": "- Very limited number of donors and private investors attracted by rural electrification projects because of low return, low bankability and high risk."}, {"bbox": [96, 1505, 1073, 1560], "category": "Text", "text": "Identification of main stakeholders and corresponding institutional and/or organisational issues (mandates, potential roles, and capacities) to be covered by the action:"}, {"bbox": [134, 1584, 1134, 1640], "category": "List-item", "text": "- MEMD and in particular the Rural Electrification Programme – REP (former Rural Electrification Agency) will be responsible for the implementation and follow up of this action in the framework of the"}, {"bbox": [1037, 1680, 1143, 1706], "category": "Page-footer", "text": "Page 7 of 21"}]