The Energy Efficiency and Conservation Law in Uganda; Understanding the New Energy Efficiency and Conservation Act, 2026

Introduction:

Energy efficiency and energy conservation are two ways to avoid or reduce energy consumption. Energy efficiency mainly refers to the technical performance of energy conversion and energy-consuming devices. Energy conservation on the other hand, generally involves actions to reduce the amount of energy consumption by the end user. A simple illustration is installing energy-efficient lights for efficiency purposes, and turning lights off when not needed, either manually or automatically with timers or motion sensor switches.

Efficiency and conservation can help to lower consumers' energy bills and potentially reduce greenhouse gas emissions associated with energy use. Consumers can also benefit indirectly when reducing their electricity consumption because it helps to reduce demand on the electricity system. High electricity demand often results in higher costs for generating and transmitting electricity that may be passed on to utility customers.

Other illustrations of energy efficiency and conservation for consumers include purchasing energy-efficient products, purchasing vehicles with high fuel economy, installing energy management and control systems in commercial and industrial facilities, turning off lights and electrical appliances when not in use and participating in the energy efficiency and conservation programs offered by the utilities.

The New Law (The Energy Efficiency and Conservation Act, 2026):

Purpose of the Law:

The Energy Efficiency and Conservation Act, 2026 assented to by the President on 29th April 2026 was enacted for this purpose. This law seeks to provide for the legal, institutional and regulatory framework for energy efficiency and conservation in the country. In so doing it aims to provide for the efficient utilisation of energy and for energy conservation in all sectors of the economy, regulate use of specified energy-consuming technologies, provide for the financing of energy efficiency and conservation schemes and provide for public awareness about energy efficiency and conservation.

Minimum Energy Performance Standards:

The law sets out to promote energy-saving practices through a series of reforms that include minimum energy performance standards for appliances, mandatory energy audits for certain designated consumers yet to be defined, and the establishment of a national five-year energy efficiency plan. This plan is intended to serve as a roadmap for achieving energy efficiency and conservation in the different sectors of the economy.

The law aims to create a culture of responsible energy use in Uganda. Where every individual, business and institution appreciates that efficiency is not just about avoiding or reducing costs, but also about protecting the environment and ensuring energy security for future generations.

Transport and Cooking Sectors:

Beyond household and industrial energy use, the law integrates sustainability into the transport and cooking sectors. The minister is mandated with developing and implementing a national cooking strategy that promotes clean and efficient cooking. On the other hand, Uganda National Bureau of Standards (UNBS) in consultation with the ministers for transport and energy, are to establish energy efficiency and conservation standards and targets for vehicles and vessels. These include passenger cars, trucks, buses, speed boats, and ferries among others. 

According to studies, the transport and energy sectors are the country’s most energy-intensive areas. Thes two sectors have been linked to being the biggest drivers of biodiversity loss in Uganda. Therefore, addressing them is timely and would go a long way in conserving our environment.

Additionally, the law sets to promote clean cooking technologies, and to support the development of electric vehicle (EV) infrastructure such as charging stations. It also provides for the licensing of commercial charging stations. It further sets fuel and emission standards for vehicles and vessels to reduce pollution and encourage green mobility.

Agriculture:

The new law further sets out energy efficiency standards in the agriculture sector for the machinery and equipment such as tractors, irrigation systems and other relevant tools to enhance sustainable practices in the sector as well as encourage adoption of energy efficiency practices to reduce greenhouse gas emissions.

Energy Service Companies:

The law recognises energy service companies. An energy service company is defined to mean a business that develops, installs and arranges financing for projects designed to improve energy efficiency and maintenance costs for facilities over a period of time. These companies are expected to provide a range of energy efficiency services such as conducting energy audits, retrofitting, energy-efficiency equipment installation, energy management and consulting. These companies are required to register with the minister before operating.

Trading in Specified Energy Consuming Products:

Anyone trading in specified energy-consuming products prescribed under the law is mandated to comply with the set standards. Failure to meet these standards creates criminal liability, which upon conviction attracts fines from 10,000 to 20,000   currency points or imprisonment for a term not exceeding four years or both.

Integration of Energy Efficiency and Conversation into Education Curricula and Energy Efficiency Inclusion in Sustainable Public Procurement:

Finally, to promote behavioural change at an early stage, the law provides for integration of energy efficiency and conservation into the country’s educational curricula and programmes. Another critical contribution is that the law promotes energy efficiency inclusion in sustainability public procurement. This is a new phenomenal. A procuring and disposing entity is mandated to consider energy efficiency as a primary criterion when making procurement decisions for goods, services and construction projects. The Minister of Finance in consultation with the Minister of Energy will make regulations on inclusion of energy efficiency in sustainable public procurement for products related to the consumption of energy.

Conclusion:

The Energy Efficiency and Conservation Act 2026 marks a turning point in Uganda’s energy transition journey, aligning national efforts with the United Nations Sustainable Development Goals (SDGs) in particular SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action).

Businesses with huge energy consumption should set themselves for energy audits.

We also believe that the law will help Uganda lower its energy demand, reduce greenhouse gas emissions, and attract investment in green innovation, while improving the quality of life for millions of citizens.

The content of this article is intended to provide a general guide on the subject matter. Should you want specialist advice for specific circumstances, please get in touch with us.