Electricity Security and Industrial Performance Of Medium and Large Consumers.
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Date
2025-11-05
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Makerere University Business School
Abstract
The study aimed to examine the relationship between industrial performance and electricity security of medium and large consumers in Kampala Metropolitan. The study employed a cross-sectional research design and used primary data, which was obtained through the use of a self-administered questionnaire and triangulated with key informant interviews. The objectives of the study were to: assess the state industrial performance, determine the state of electricity security, examine the effectiveness of electricity regulatory measures on industrial performance, and evaluate the impact of electricity security on industrial performance. A sample of 337 medium and large consumers was obtained during the survey. The state of industrial performance in the Kampala Metropolitan area was perceived to be satisfactory against the dimensions of sales, profit, and market share; there were both high levels of agreement and consensus in the responses as well as on the high operational costs that are arising from the reliance on back up diesel generators that take up to approximately 20% of operational costs which impacts negatively on the profit margins. On the state of energy security, Kampala metropolitan area was found to be moderately to highly energy secure, probably explained by the differences in size and location of industries; key strengths of the electricity supply system include perceptions of sufficient infrastructure and voltage stability to support business operations, as well as electricity affordability. Conversely, the main weaknesses are the frequency and duration of outages and inadequate communication from service providers about planned outages. There is an over-reliance on backup energy sources, notably diesel, which is particularly of concern due to global geopolitics around climate change and the accompanying shift from fossil fuels.
The relationship between industrial performance and the effectiveness of government policies and regulatory measures, as well as industrial performance and energy security, where both are found to be positive and statistically significant, meaning they both influence industrial performance. Both policy and further research implications arise from the findings in areas such as; decentralized energy planning, spatial mapping, and prioritization based on severity of energy security vulnerabilities, incentives, and geopolitical issues arising out of the wide use of fossil fuels for industrial operations, business models, and incentives for the adoption of renewables for power back up.
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This is a master's thesis.
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Citation
Kodet, C. (2025) Electricity Security and Industrial Performance of Medium and Large Consumers: A Study of Kampala Metropolitan. (Unpublished master's dissertation). Makerere University Business School, Kampala, Uganda.