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COUNTRY ENERGY PROFILE: UGANDA

1. INTRODUCTION The Republic of Uganda is a landlocked country in East Africa. It is bordered on the east by Kenya, on the north by Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by Tanzania. The southern part of the country includes a substantial portion of Lake Victoria, which is also bordered by Kenya and Tanzania. Uganda has a total area of 236,040 km2 of which 15.39% of it is covered by water. The 2009 population estimate was 32,369,558 with a population density of 137.1/km2. The capital city of Uganda is Kampala. 2. THE ENERGY SECTOR 2.1 Background Ugandas total installed electricity capacity is 380 MW (2007); of which 0.7% is thermal and 99.3% is hydro. The total primary energy supply is 11,080 ktoe (2010) of which;

Biomass: 92% Petroleum products: 6% Electricity imports: 2%

Low-grade forms of energy, especially traditional biomass fuels account for more than 90% of total energy consumption. Renewable sources of energy contribute negligibly to the national energy balance. 2.2 Reliance Uganda imports all its petroleum products and there is, as yet, no oil production in the country; although some local production is expected to begin soon. Imports come primarily through Kenya (85%) and Tanzania (15%) via trucks. These products account for a significant percentage of the countrys per capita income. The petroleum import bill is estimated at US$ 160 million per year. This constitutes about 8% of total national imports and represents slightly above 20% of total export earnings.
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2.3 Network The level of electrification is very low and only about 5% of the population are connected to the national grid. In rural areas, where more than 85% of the population lives, roughly 1% of the households are connected to the grid, a few households generate electricity from household diesel generators, batteries and solar photovoltaic systems (PV), but the greatest majority has no electricity. 2.4 Capacity Concerns Ugandas electricity supply depends mainly on hydropower from the Nile. Due to this dependence, the country is facing severe climate change-related risks. Recent persistent droughts have reduced hydropower production from 340 to 140 MW. Power shortages have been compensated by installing numerous off-grid systems, and 150 MW grid thermal power system, at the exceptionally high cost of 0.27 US$/ kWh. Commercial losses are at roughly 35% due to poorly-maintained lines. There is a need to broaden and diversify power production in Uganda, and to design systems that will provide power to local communities. Renewable energy could be a sustainable option for a land-locked country with the 6th highest fuel import costs in the world. 2.5 Energy Efficiency The Promotion of Renewable Energy and Energy Efficiency Programme (PREEEP) is a key project by the Ministry of Energy and Mines in collaboration with the German Development Cooperation (GTZ) to promote energy efficiency and renewable energy. The government is also promoting the use of energy saving bulbs by distributing about 800,000 of them to low-income households. The Energy Advisory Project, also funded through GTZ, aims to provide energy users with information about energy efficiency, as well as promote the use of efficient equipment and appliances in manufacturing and at home. Efficiency standards-setting is another goal of the project, now in its eleventh year.

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3. RENEWABLE ENERGIES 3.1 Solar Uganda has an average of 5-6 kWh/m2/day of solar insolation. Solar energy is currently used primarily for off-grid electrification for rural communities, as well as for solar cooking, and providing water heating and power to public buildings for example, hospitals. 3.2 Wind Wind speeds are estimated to average 3-3.5 m/s, indicating a moderate potential for wind power. Studies have concluded that whilst the wind resource is insufficient for large-scale power generation, possible applications for the technology exist, for example, water pumping, and small-scale power generation in mountainous areas. 3.3 Biomass Bio energy, apart from hydropower, is considered to be the second significant pillar to secure energy supply, particularly in rural areas. The transition from traditional biomass, which is often perceived as inefficient, to modern biomass and biofuel production and consumption is a main focal area of the government. 3.4 Geothermal Uganda has an estimated geothermal resource potential of 450 MW, mainly located in the Western Rift valley part of the country. Feasibility studies are recommended to improve confidence in the resource and promote development. 3.4 Hydropower Despite Ugandas vast hydropower potential, estimated at 3000 MW, less than 10% is currently exploited. Currently, a 250 MW hydropower project is under-way in the Jinja district of the country. Numerous other hydropower ventures are being investigated by both Ugandan and Japanese contractors, as well as the government. 4. ACTORS IN THE ENERGY SECTOR 4.1 Ownership
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For Electricity; The electricity sector was unbundled in 2001 and the responsibilities, previously solely carried out by Uganda Electricity Board (UEB), transferred to various companies:
Uganda Electricity Generation Company Ltd (UEGCL): It is responsible for 99% of all

generation in the country at two stations: the Nalubaale and Kiira Power Stations. The business (and notably, not the assets) was privatised on concession terms for up to 20 years to Eskom Uganda Limited.
Uganda Electricity Transmission Company Ltd (UETCL): UETCL is responsible for

power transmission at 132kV and above including exports to Kenya and Tanzania, It buys the power from different power generators like Eskom (hydro), Aggreko (thermal), Kakira Sugar Limited(Cogeneration). It is to remain a government utility body for some time.
Uganda Electricity Distribution Company Ltd (UEDCL). UEDCL exists mainly to

distribute and sell power to end users. The distribution of power was privatized and is now managed by Umeme Ltd. 4.2 Competition After unbundling, the government proceeded with the process of privatisation. The generation concession license was competed for and won by Eskom Uganda Limited a subsidiary of Eskom Enterprises South Africa, which took over in April 2003. Umeme Limited won the distribution concession, and took over in March 2005. 4.3 Role of Government The Ministry of Energy and Mineral Development (MEMD), The MEMD is responsible for overall management, dealing with policy formulation, implementation and monitoring. The Rural Electrification Agency (REA) has a mandate of facilitating provision of electricity in the rural areas.

4.4 Government Agencies


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Other key actors in the energy sectors include:


National Environment Management Authority Directorate of Water Resources Development Private Sector Foundation Uganda Uganda Investment Authority Uganda Manufacturers Association Uganda Renewable Energy Association Uganda Small Scale Industries Association Other Government Ministries, including District Local Governments.

4.5 Energy Regulator The Electricity Regulatory Authority (ERA) was set up following the enactment of the Electricity Act 1999. It has a mandate of regulating all energy in the country. Degree Independence: The Authority members are appointed by the Minister responsible for energy on approval of cabinet for a period of five years with a possibility for one renewal. The ERA is financed through the Ministry of the Treasury.

5. ENERGY FRAMEWORK, STRATEGIES AND SIGNIFICANT POLICIES 5.1 The Electricity Act 1999 This act enabled private participation in the electricity sector, and established the Electricity Regulatory Authority (ERA) as the energy regulator for the country. 5.2 The National Energy Policy, 2002 The policy goal in the energy sector is to meet the energy needs of the Ugandan population for social and economic development in an environmentally sustainable manner. 5.3 Renewable Energy Policy 2007

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Uganda is one of the few African countries with a clearly focussed renewable energy policy, which was published by the Ministry for Energy, Minerals and Development (MEMD) in 2007. Its objectives include increasing access to modern, affordable and reliable energy services as a contribution to poverty eradication. This comprises general public access to electricity and enhancing the modernisation of biomass conversion technologies. The overall policy goal is: To increase the use of modern renewable energy, from the current 4% to 61% of the total energy consumption by the year 2017. 5.4 Energy Debates Strengthening the inter-connection of the Kenyan and Ugandan power grids, as well as establishing new grid connections with Rwanda, has been planned in the past. Substantial allocations have been made in the 2010/2011 budget for improvements to the energy infrastructure. 5.5 Energy Planning Energy planning is guided by the Rural Electrification Strategy and Plan covering the period 2001- 2010. The objectives of the plan are to achieve equitable regional distribution of energy, maximise the economic, social and environmental benefits of rural electrification subsidies, promote expansion of the grid and development of offgrid electrification, and stimulate innovation within electricity suppliers. 5.6 Regulatory Framework The Electricity Act (1999) mandates the minister of energy to table in parliament an annual report on the progress of the Rural Electrification Strategy and Plan that contains, amongst other things, information relating to renewable energy power generation for sale to the main grid and for mini-grids. The Renewable Energy Policy establishes a Standardised Power Purchase Agreement and feed-in tariffs for renewable energy generation projects. It introduces favourable financial and fiscal regimes for RETs, including:

Preferential tax treatment or tax exemption,


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Uganda Energy Profile

Accelerated depreciation, Provision of risk mitigation mechanisms and credit enhancement instruments, Credit mechanisms for renewable energy consumers.

Furthermore, the creation of the Energy Fund seeks to provide a public financing source to support or leverage private sector financing, in addition to providing for the construction of hydropower projects and the associated infrastructure 5.7 Regulatory Roles ERA is responsible for:
Issuing licenses for electricity generation, transmission, distribution, supply, import

and export
Reviewing and approving tariffs Establishing and enforcing sector standards Advising minister on matters affecting electricity sector.

5.8 Energy Role Regulation Government departments are involved in preparing policies, setting standards, preparing strategic plans and drafting legislations for the energy sector. The MEMD is responsible for appointing the commissioners of the regulator, but does not take an active role in regulation itself. 5.9 Regulatory Barriers Further facilitation activities are required to make investment in RETs a truly viable prospect in the country, including the simplification of land acquisition procedures, and capacity-building measures in the sector.

6. ENERGY STUDIES AND PROJECTS Energy Studies

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Technical Assistance for Renewable Energy Resource Information and Capacity Building Assessment undertaken by KAMFOR Company Ltd. Recent study has confirmed that electricity generation through wind is feasible especially in small industries and in rural areas. Further studies are being carried out countrywide to generate further potential geothermal sites. Uganda was included in the 2005, the Energy, Environment and Development Network for Africa

(AFREPREN/FWD) and Heinrich Bll Stiftung (HBF) study to examine the biomass cogeneration and geothermal potentials of Ethiopia, Kenya, Tanzania and Uganda. Energy Procedure: Energy for Rural Transformation APL-2 (GEF) Project At a cost of $US93 million, the objective of the Second Energy for Rural Transformation (ERT II) Project is to increase access to energy and Information and Communication Technology (ICTs) in rural Uganda. Uganda Power Sector Development Project In 2007, the World Bank approved funding for the Power Sector Development Operation Project at a cost of $US304 million. Its primary objectives are to reduce shortterm power shortages and financial imbalances, and facilitate longer-term expansion of electricity service. GTZ Promotion of Renewable Energy and Energy Efficiency Programme (GTZ PREEEP); The overall objective is to improve access to modern energy services through renewable energies and to promote energy efficiency in various sub-sectors. INSTITUTIONS AND PERSONS ACTIVE IN UGANDA ENERGY SECTOR There are several institutions which are actively running projects on renewable energies and energy efficiency. Below is a brief description and contact details for these;
Institution Ministry of Energy and Description Responsible for overall Contact Person Eng. Paul Mubiru; Contact Information P.O.Box 7270, Kampala Website / Email Address Website: www.energyandmine Page | 8

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Mines

management, dealing with policy formulation, implementation and monitoring. Promotion of Renewable Energy and Energy Efficiency Programme

Director Energy and Mineral Development

German Development Cooperation (GTZ

Dr. Thomas Schild

Uganda Electricity Generation Company Ltd (UEGCL)

Government entity responsible for 99% of all generation in the country

John E. Mugyenzi; Managing Director

Uganda Electricity Transmission Company Ltd (UETCL)

Government entity responsible for power transmission at 132kV

Eriasi Kiyemba; Managing Director/CEO

Uganda Electricity Distribution Company Ltd (UEDCL) users.

Government entity responsible for power distribution

Eng. Irene N. MUloni MD

Tel: +256 414 233331/ 233910/232598/2 34733 Fax: +256 414 234 732/230 220 23 Nakasero Road Kampala Uganda Tel: +256 414 303901 Fax: +256 414 234685 Address : 18 - 20 Faraday Road Amberly Estate Jinja, 256 Uganda P.O. Box : 1101 Zipcode : 256 Telephone : 0414234599, 0312110799, 0434 120891 Fax : +256 414236399/434 123064 Physical Address: Plot No.10, Hannington Road. P.O.Box 7625, Kampala - Uganda Tel : +256 -41- 4233 433/4 Fax: +256 -41- 3441 789 Amber House, Plot 29/33 Kampala Road

rals.go.ug Email: psmemd@energy.go.u g, memd@energy.go.ug, mubiru@energy.go.ug Website: http://www.gtz.de/e n/praxis/601.htm Email: gizuganda@giz.de , gtzuganda@gtz.de Website: http://uegcl.com/

Website: www.uetcl.com Email: Transco@uetcl.com

Website: www.uedcl.co.ug/ Email: contact@uedcl.co.ug

Tel: +256-312330300 Uganda Energy Profile Page | 9

Eskom Uganda Ltd

Private entity responsible for hydro power generation Private entity responsible for power distribution

Nokwanda Mgeni; Managing Director Charles Chapman; Managing Director

Umeme Ltd

Rural Electrification Agency (REA)

Responsible for the provision of electricity in the rural areas (under MEMD)

Uganda Renewable Energy Association Electricity Regulatory Authority (ERA)

An NGO responsible for the promotion of renewable energies Responsible for energy regulation The Chief Executive Officer; Eng. Dr. F. B. Sebbowa

Fax: +256-414255600 Phone: +256 (0)434 121 416, (0)332240400 Fax: +256 (0)434 123 156 Physical Address: 2nd Floor, Rwenzori House, Plot No.1 Lumumba Avenue P.O. Box 23841 Kampala Tel: +256 31-2-360600 Plot 1 Pilkington Road 10th Floor, Workers House P.O Box 7317, Kampala, Uganda Tel: +256-312264095/264103/4 /5 Fax: +256-414346013 Tel: +256 414 257863

www.eskom.co.za

Website: http://www.umeme. co.ug Email: info@umeme.co.ug

Website: http://www.rea.or.ug Email: rea@rea.or.ug

Email: upppre@infocom.co.u g

ERA House, Plot 15 Shimon Road Nakasero, P.O. Box 10332 Kampala, Uganda Tel: +256-41341852/41-341646 Fax:+256-41341624

Website http://www.era.or.ug / Email: era@africaonline.co.ug

REFERENCES
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1) http://www.reeep.org/index.php?id=9353&text=policydatabase&special=viewite m&cid=56 , Uganda Energy Profile, cited on 13/01/2011 2) http://www.thegef.org/gef/focal_points_list/U 13/01/2011 3) http://en.wikipedia.org/wiki/Uganda , Uganda GEF, cited on

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