Barriers to the institutionalization of industrial energy efficiency in Africa: A case study from Uganda

Uganda has ambitions to become a middle‐income country by 2040. Achieving this goal would require an economic transformation that is led and aided by industrialization. Economic transformation and industrialization also require efficient utilization of energy, including electricity. The cost of electricity in Uganda is not cheap; thus, there is an incentive for industries and policymakers to invest in energy efficiency measures. The fact that energy efficiency could contribute to climate and other social policy objectives is also an added advantage. Since the mid‐2000s, following a power crisis, the Government of Uganda has taken several initiatives to promote energy efficiency within the industrial sector. However, although targeted interventions delivered demonstrable gains, efforts to institutionalize industrial energy efficiency remains a challenge. In this article, we use institutional theory and the political economy approach to explore why institutionalization has been difficult to achieve in Uganda. The article pays attention to the underlying political and economic processes to observe the factors that contribute to the non‐institutionalized status. The article argues the need to build a robust regulatory framework with a deliberate intent to broaden consensus around a shared understanding of the trade‐offs and benefits associated with energy efficiency.