Uganda photovoltaic pilot project for rural electrification

PROPOSAL FOR REVIEW
Project Tide: Bgmdr: Phofovoltrric (PV) Pilot Project for
Rural Electrification
GEF F d Climate: Change
Gomntq EEigibmty: Convention 8 September, 1993
Total Project Cask US S 2.8 million
GEF Finand= US S 1,756 mdhm
Couatrg Coatrlbtldon: US S ZW,QoO
CoTmancing/Pdlel Finnndng: US $1m illion W P IFF)
EEF Prepantton Corn US S 45,000 (Govment ofUganda: US S
UNDP: US S 30,000)

Page: 2
JGANDA: PHQTOVOLTAKS (PVS PlLOT PROJECT FOR RURAL
ELECTRIFTCATION
COUNTRY AND SECTOR BACKGROUND CONTEXI'
1. The Government of Ugaada is committed to addressing the energy naads of the ma.iority sf
its citizens who live in tk rural areas. Approximately 90% of the population Iives in rural areas
am i depends on traditiod fuels (woodfuel and crop midues) for coo- a d w ate: rh eath -:E d
-m-o-s.e ne for lighting. In the past, Government emphasis has ken on the dtvel--o--A p~~1of1 t~h e
el&c power sector, which serves less than 5% of the total population (2% in the mrd ateas)
ad the supply of petioleurn prcducts. The supply of these modem conventional sources of
energy entails substantial capital invement and foreign exchange requirements, which d b u t e
to the nation's high debt burden. Yet, the direct beneficiaries of this heavy investment am mainly
the urban dwellers who use electricity and own vehicles, and constitute a small proportion of the
population. Therefore, the Govermnent has iealised that some change in emphasis in energy
plllnning, to reflect more of the rural energy needs than before, is the only way that the majority
of the citizens can move towards attaining ewgy secvity and social weIfare. This project
represents one im- elmrent of a larger programme to meet rural e tee&. Other
efcmtnts of that programme include conventional rural elmcation, the ( 18th of fuel-
efficient stoves, collection of windenergy data, and improved wdfueE management.
2. Although the Government's macm+conomic policies emphasize nual tl&ficatim as a
means of improving the quality of life of the nual population and promoting nual txmmdc
deveIopment, it has become apparent that the fulfillment of this goal cannot be achieved through
the extension of the natiwaI electric grid due to the people's inability to afford either the
cormection fee or the energy c o v t i o nc harges. It is unlikely that the populations 1i ving even
a few Mometers from the grid will be connected to the grid in the near future, even where the
Uganda Electricity Board (UEB) identifies a particular tcom>mic activity warranting grid
extension.
3. Recognizing the problem of grid extension inu, rural arcas, the 60vefnmtnt of Uganda is
now focussing on the promotion of solar PV systems for rural eiectrificzttiwn or pre-
electrification. In 1992193, The Governems moved duties and sales tax on solar cmrgy
equipment. Despite this measure, solar PV system up-front costs have contimed to be too high
for the ml people. In response to this situation, the Govement requested UNDPIEEF
assistance in establishing a pilot project to promote the potential use of solar PV systems for
mrah electrification on, a sustainable basis,
4. lhe Government intends to yse this pilot project to establish the necessary. conditions for
expansion of pst-tlccmfication of remote arcas using PV's in solar home systems. This will
include developing mining packages to increase the number of personnel qualified to instdl.
maintah, and finance these systems. It will involve developing public information to inform tbe