In 2005, Uganda descended into a power crisis that changed energy planning mindsets forever. A sharp decline in hydropower generation output, partly blamed on prolonged droughts that affected water levels in Lake Victoria along with delayed capacity additions, meant that electricity demand was double the available supply. This led to a period of long power outages and load shedding, which caused economic loss and ultimately reduced the country’s GDP growth. To address the immediate crisis, the government turned to expensive diesel rentals in the short term as systematic interventions followed to buy time for a concerted effort to overcome the crisis.
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