Covid-19 Pandemic Deranging Energy Transition in Uganda: Challenges and Prospects

Abstract

The coronavirus (Covid-19) global pandemic of 2020 is alarming for economic growth and development. Several sectors in the world have experienced shocks, and the energy industry has intensely suffered as characterised by the massive drop in petroleum prices. Only a pick-up in global oil demand would overcome the oil crisis after the lifting of comprehensive lockdown measures and the economic revamp. During this period, environmental advocates are pressing for the transition from traditional fuel sources like coal and oil to renewable energy sources. Moreover, clean energy projects are more likely to be impacted by the pandemic because of the effect on foreign exchange and the global economy. The energy transition has also faced other major setbacks by the Covid-19 crisis. Globally, many policies related to climate and energy, such as the carbon trading scheme of the European Union (EU) have been shelved or postponed. This article thus explores the Covid-19 impact on the global economies with a focus on Uganda which is yet to start actual petroleum production and how they face challenges in adapting to the energy transition movement. The governments are encouraged to realign policies and also extend Covid-19 fiscal recovery packages to cover clean energy investments.