Uganda is richly endowed with countless renewable energy resources. The total estimated potential is about 5,300 MW. However, these resources remain largely unexploited, mainly due to the perceived technical and financial risks involved. Hydro and biomass are considered to have the largest potential for electricity generation, with solar power ranking second in the hierarchy.  According to the 2019/20 Uganda Bureau of Statistics national household survey, connection to grid electricity is 19% (down from 22% in 2017) and connection to solar is 38% up from 18%in 2017. Uganda also has a promising potential for the exploitation of geothermal energy.

Wind speeds in Uganda are generally low and potential to generate wind power is thus negligible.

The clean energy sector is integral to the transition to a green and inclusive economy in Uganda. Lowering greenhouse gas emissions through renewable energy usage, generating resource savings through energy efficiency measures, and improving lives and livelihoods through increasing access to electricity are central aspects of green and inclusive growth. Generation capacity in Uganda is dominated by hydropower, and supported by heavy fuel oil and biomass cogeneration power plants. Promotion of renewable, clean and cheap energy sources, and securing these sources in the face of changing climate conditions are key to the supply of clean energy. Based on the supply and demand pressures of the sector, the clean energy sector is driven by priority areas as they relate to small and medium enterprises that include:

  1. Increasing access to and productive consumption of electricity.
  2. Encouraging clean alternative energy sources.
  3. Promoting distributed generation. Small, mini and micro hydro plants, photovoltaic mini-grids and stand-alone systems for households, agriculture and industry offers potential for distributed generation of renewable energy.
  4. Promoting energy efficiency.

5.Promoting social , cultural and environmental responsibility.