PSFU, EnDEv partner to offer affordable solar energy to Refugee Host Communities

Project title

Demand-Side Results Based Financing Project

Duration

23 months

Start Date:

1^st August 2023

End Date:

30^th June 2025

Funded by:

GIZ

Implemented by:

Private Sector Foundation Uganda in partnership with Energizing Development (EnDEV)

Role on the project

Fund Manager

Project description and strategy

q  End-user affordability (mostly at a household level) is a key challenge affecting energy access in last-mile segments in Uganda. Despite increased participation of private sector companies within last mile energy markets (including refugee markets), affordability remains a significant barrier which deters many companies from serving the last-mile market. To address this challenge, PSFU in partnership with Energizing Development (EnDev) GIZ Uganda, with funding from funding from Ministry of Foreign Affairs of the Netherlands is implementing the “Demand Side Results Based Financing Project” (DS RBF) aimed at increasing energy access through bridging the affordability gap for clean cookstoves and off-grid solar products in underserved refugee communities and their host districts in Northern Uganda including Kiryandongo district.

q  The project shall use a Demand Side Subsidy approach to enhance the delivery of modern energy products and services to households in refugee settlements and their hosting communities. The project shall focus on delivering the subsidy through private sector companies selling and distributing energy efficient cooking and solar lighting technologies, through results-based financing (RBF). The RBF shall influence a mandatory price reduction (discount or demand side subsidy) on eligible products at the point of sale within target locations that will ultimately benefit the target end-users.

Overall Goal and Objectives

Overall Objective

The overall project objective is to increase energy access through bridging the affordability gap for improved cookstoves and off-grid solar products in underserved refugee communities and their host districts and other vulnerable rural locations.

Specific objectives;

·         Access to off-grid solar products to about 23,000 households in eligible locations.

·         Access to improved cookstoves to about 185000 households in eligible locations.

·         Access to higher tier clean cooking products to about 5,000 households in eligible locations.

Project scope/area

Refugee Settlements and Hosting districts in Northern Uganda and Kiryandongo District.

Target Beneficiaries

1)      Last-mile households in refugee and host communities in Uganda.

2)      Off-grid solar and cookstove companies providing tier 1 solar systems and improved cookstoves in refugee and host communities.

Target Results:

• 185,000 households reached with improved cookstoves (ICS; tier 1 - 2).
• 5,000 households reached with higher tier clean cooking (HTC; tier 3 - 4).
• 23,000 households reached with Solar lighting (tier 1).

Desired Impact and Outcome

Impact:

1)      Refugee and host community households realise income savings from purchasing subsidised energy efficient off-grid cooking and lighting technologies.

2)      Communities realise significant reduction in their household carbon footprint.

Outcomes

1)      Private sector solar and cookstove companies have new or strengthened distribution networks from increased market demand.

2)      Refugee and host community markets (including other targeted rural markets) have increased access to affordable energy efficient technologies.

3)      EnDev and other sector actors improve their programmes based on learnings and participatory feedback from market actors.

Status & Next steps

• Ongoing contracting of Private Sector Partners.
• Official launch of the project scheduled for 26^th March 2023.

Region

Sub-region

Hosting District

Hosting District Population

Refugee Gazetted areas

Sub-counties hosting refugees

Refugee Popln

Western Uganda

Bunyoro Sub-region

Kiryandongo

313,800

Kiryandongo

Bweyale TC, Kigumba TC, Kiryandongo, Kiryandongo R/S, Kiryandongo TC

64,362

Northern Uganda

West Nile Sub-region

Yumbe

663,600

Bidibidi

Ariwa, Kochi, Kululu, Odravu, Romogi

210,102

Terego

233,300

Rhino Camp, Imvepi

Odupi, Omugo, Uriama

143,200

Madi-okollo

164,200

Rhino Camp

Rigbo

62,874

Obongi

49,100

Palorinya

Itula

120,397

Adjumani

235,900

Adjumani

Dzaipi, Itirikwa, Ofua, Okusijoni, Pachara, Pakele

220,592

Koboko

258,000

Lobule*

Koboko TC, Lobule

5,899

Acholi Sub-region

Lamwo

143,800

Palabek

Palabek Kal, Palabek Ogili, Palabek Gem

76,869