The REF promotes the equitable distribujtion of rural electrification in Uganda through the increased provision of access to electricity for economic, social and household use.
The REF Provides grants for:
- (i) Rural electrification programmes and activities
- (ii) Lowering the financial threshold for the private sector and local communities for investments in rural electrification projects through a smart subsidy.
Sources of funding for the REF
Money appropriated by Parliament;
Any surplus moneys made from the operations of the Electricity Regulatory Authority declared to the Minister of Finance and paid into the fund
A levy of 5% on transmission stations; and
Donations, gifts, grants and loans acceptable to the Ministers of Energy and Finance. At the moment there is financing from World Bank, SIDA, JICA and NORAD
The fund is used to subsidise technological approaches in rural electrification that include:
expansion of the main grid;
development of isolated and mini-grid systems for relatively concertrated areas with a potential for productive use;
renewable energy power generation for sale to the main grid and for mini-grids; and
installation of solar photovoltaic systems for isolated settlements that cannot be economically connected to the grid.
Categories of Projects funded under the REF
Private Sector Initiated Projects
Local Communities Initiated Projects
Priority Rural Electrification Projects
Process for sector initiated rural electrification projects
Expression of interest to REA on concept, development and site