Uganda committed itself to protect the climate and environment by signing the Paris Agreement and submitting the Nationally Determined Contributions that targets a low-carbon development pathway and reduction in the vulnerability of the population, environment, and economy. Therefore, expansion of renewable energy capacity as one of the strategies in the energy sector has significant mitigation potential. Government plans to increase the installed renewable energy capacity to 4,575 MW by 2040.
The policy brief “Modelling the Macroeconomic Impacts of Renewable Energy Expansion in Uganda” by giz concludes that Uganda is richly endowed with multiple renewable energy resources for electricity production which makes the envisaged renewable energy expansion possible. Additionally, the renewable energy expansion increases the gross domestic product which is up to 0.5% higher per year compared to a situation without further expanding renewable energy, creates 40,000 jobs, and saves 6.5 Tg greenhouse gas emissions.
The renewable energy expansion comes at costs which should be at least partially financed by the government and / or international donors to limit electricity price increases. To exploit the full benefits of an increased use of “green” electricity should be promoted and financially supported. The economic and environmental benefits would be even better than those presented in this policy brief.
Access the complete brief here
