Today 5^th August, 2021, National Renewable Energy Associations (NREAs) in East Africa, comprising Energy Private Developers (EPD) in Rwanda, Burundi National Renewable Energy Association (BUREA), Kenya Renewable Energy Association (KEREA), Uganda Solar Energy Association (USEA), and Uganda National Renewable Energy and Energy Efficiency Association (UNREEA) with support from Global Association for Off-grid Solar Industry (GOGLA), and Goldstone Consulting have launched the EAC report on strengthening the Off-grid solar electrification market through improved policy and advocacy in East Africa. The study was funded by the PowerUp! project under the Transforming Energy Access (TEA) programme of the Foreign, Commonwealth and Development Office (FCDO).

The report is a culmination of an extensive year-long study to assess the policy environment in the Off-grid solar sector. Noting that 82 million out of 177 million East Africans do not have access to electricity; more specifically electricity access stands at 59.7% in Rwanda, 7% in Burundi, 36% in Tanzania, 56% in Kenya and 42.6% in Uganda.

It is important to note that E.A governments have invested heavily in hydro power generation, however penetration to end users is slow, service is unreliable and expensive, resulting in inequity between urban and rural populations. As such, the E.A region is now increasingly focussing on Off-grid electrification solutions to scale access to energy and fight climate change.

Energy sector strategic plans of different EAC countries target to increase energy access through contribution of electricity coming from renewable energy sources, particularly Off-grid solar. The contribution of Off-grid solar in the energy mix is being hampered by policy gaps for instance, salient issues like affordability, taxation, standards and quality are not comprehensively addressed, implementation of these strategies is weak and disjointed due to limited budgets, competing priorities, weak follow-up by stakeholders, and above-all the policies and strategies remain largely on paper.

The report launch includes an EAC Industry Position Paper that NREAs have adopted to advocate for a better Off-grid solar sector policy environment and assist governments to meet national renewable energy targets. The action areas in the EAC industry position paper include recommendations to:-

1. Clarify and harmonize the solar tax regime: Sensitizing and building the capacity of revenue bodies and stakeholders in solar tax assessment and clearance. And further build on NREAs efforts in the EA regional solar tax handbook.
2. Establish strong and consistent enforcement of approved standards: Empower national solar laboratories with modern equipment to test products according to the newly adopted standards. Sensitizing stakeholders especially solar businesses on adopted standards and fast track efforts by CLASP and WB in supporting Burundi in adopting solar standards.
3. Establish new financial vehicles: to support local solar companies with long term credit, guarantees and incentives.
4. Strengthen RE institutional coordination: establish off-grid solar steering committees both at regional and national level involving all stakeholders. Engage governments to consider technical and financial support to NREAs and country’s energy committees to deliver on their mandate.
5. Build Capacity for better Off-grid investment: build technical skills such as contract financing and investment structuring that are required in proper implementation of investment deals and utilization of available opportunities.

This report is key in bringing meaningful change in the governance of the renewable energy sector in the individual countries and the EAC region. It is expected to be beneficial to the East African Community governments, Development Partners, International and local NGOs, impact investors, and philanthropists with interest in improved renewable energy access, especially Off-grid solar electrification.

NREAs have committed to implement the above actions areas, through an inter-agency task team on Off-gird electrification to be coordinated among them, the task team will support efforts in national, and regional governmental engagements as well as collaborations with business and development partners.

To access the full report: https://www.gogla.org/resources/strengthening-the-off-grid-solar-electrification-market-through-improved-policy-and-0