STRENGTHENING THE OFF-GRID SOLAR ELECTRIFICATION MARKET THROUGH IMPROVED POLICY AND ADVOCACY IN EAST AFRICA
On 5th August 2021, EPD hosted to launch the East African Community Solar market report. The event was facilitated by CEO Sanday Kabarebe. 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 launched the EAC report on strengthening the Off-grid solar electrification market through improved policy and advocacy in East Africa.
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; Director-General Energy in MININFRA Mrs. Annick Muhama gave highlights on the Off-grid solar policy developments in Rwanda, including the contribution of solar to energy access at 65% and later on pointed out the ambitious 100% target to electricity by 2024.
Noting that other EA countries’ access to electricity stands at 7% in Burundi, 36% in Tanzania, 56% in Kenya, and 42.6% in Uganda.
It is important to note that East African governments have invested heavily in hydropower generation, however penetration to end-users is still slow, service is unreliable and expensive, resulting in inequity between urban and rural populations. As such, the East African region is now increasingly focussing on Off-grid electrification solutions to scale access to energy and fight climate change. The report launch included 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.
Energy sector strategic plans of different EAC countries target to increase energy access through the 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.
“Rwanda’s experience with the results-based framework and how risk mitigation facility has supported local solar companies to access finance from banks and Sacco’s. She also pointed out the need to improve the competitiveness of local companies to qualify for credit from commercial banks including new finance vehicles”, said Peace Kaliisa Donor coordinator in MINIFRA.
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.