The objective of this project is to design an Output-Based Aid (OBA) scheme to subsidize the initial costs of connecting to electricity grids for low-income households in Uganda. The broad-based Energy for Rural Transformation (ERT) project specifically targets rural households who have still not connected 18 months or more after their area has been electrified.

Technical Assistance has been approved and eligibility for Subsidy Funding endorsed by PMU

The project addresses the issue of low access to electricity in rural areas by making connection accessible and affordable. By extending access to poor households, the project will reduce existing dependence on short-term diesel generators with high fuel costs. The initial phase will add less than 1% to the current peak demand and will have a negligible effect on shortages, while providing significant benefits to poor households. These households will be encouraged to use energy-efficient CFLs, further reducing the addition to peak demand and keeping their bills down.

Paul Baringanire