In 1999, the Government of Uganda adopted the Power Sector Restructuring and Privatization Strategy. The strategy aimed to attract investment into the power sector in generation, distribution and access. A key feature of the strategy was the introduction of private sector participation in existing operations and in the financing and management of future investments.
UECCC was established to address financing barriers affecting effective private sector participation in renewable energy projects and programmes through financial intermediation.
UECCC is a Government institution set up under the Companies Act as a Company Limited by Guarantee and not having share capital. It was operationalised primarily to facilitate investments in Uganda’s Renewable Energy Sector, with a particular focus on enabling private sector participation.
- Lack of project finance or long-term debt in the local market to finance renewable energy projects.
- Lack of sufficient equity on the part of project developers.
- Lack of technical capacity among local financial institutions to appraise renewable energy projects.
- Lack of early-stage financing and other transaction advisory services.
- Lack of interest among local financial institutions in financing renewable energy and rural electrification projects.
Vision
To be the leading provider of financing solutions and technical assistance to facilitate renewable energy development and access.
Mission
To provide innovative financing initiatives and technical assistance that enables participation of the private sector and other stakeholders to enhance development and access to renewable energy.
Mandate
- To facilitate financing of renewable energy development and increased access to clean and modern energy technologies.
- To package renewable energy projects and programmes in order to raise grant financing from Development Partners and the Government of Uganda.
- To use limited public resources to leverage private sector capital and participation as a contribution towards Government’s financing goals for off-grid electrification and modern energy services.
Objectives
- To serve as a credit support institution.
- To introduce new and innovative financing modalities into Uganda’s financial market, including credit enhancement instruments for renewable energy access.