The Government of Uganda (GoU) recognizes the importance of Rural Electrification (RE) as a key input to enhance growth and economic development. In 2001 an ambitious Rural Electrification Strategy and Plan(RESP) was formulated with the aim of connecting an additional 400,000 rural households by 2010. In order to achieve these ambitious targets the GoU outlined a new institutional structure for RE in the RESP as it had been recognized that a rethink of the sector would be conducive to attracting investors. In that Respect, Rural Electrification Board (REB) developed an Investment Guide for promoting the opportunities in rural electrification and renewable energy in Uganda. This focus is to contribute further towards economic development and growth of the country and access to modern energy in rural area.

Provision of electricity to previously un-electrified locations will stimulate growth of strategic economic activities for example agro-business, small and medium industries and enterprises and commercial establishments. This in turn will stimulate job creation, investment and revenue generation, and enhanced income generation in both rural and urban sectors hence contribute to economic growth and poverty alleviation