IEEJ : July 2011

Presented at the
JICA Tokyo International Center
Course: Energy Policy
By
James Baanabe Isingoma
Ministry of Energy and Mineral DevelopmentUganda

IEEJ : July 2011

CONTENT OF PRESENTATION
1. Introduction
2. Key issues in the Energy sector
3. Policy framework in the Energy Sector
 Energy Policy 2002
 Renewable Energy Policy 2007
4. Key programmes under Implementation
5. Key Statistics from the Energy Balance
6. Bottlenecks in policy formulation
7. Proposed subjects of study

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1.0 INTRODUCTION•Uganda is bordered to the eastby Kenya, to the north by Sudan,
to the west by the Democratic
Republic of Congo, to thesouthwest by Rwanda, and to thesouth by Tanzania.
• total area of 236,040 km2• 2009 population estimate was32,369,558•Population density of 137.1/km2.
•GDP Growth Rate: 5%

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2. KEY ISSUES IN THE ENERGY SECTOR Over 90% of the Energy from Biomass the majority using
inefficient technologies a situation not sustainable.
 About 50% of the power is produced from expensive
thermal diesel power plants that came in as a short termmeasure to address power shortage. The tariffs areunaffordable a situation that demands government tosubsidize.
 Need to Increasing Generation Capacity to meet thegrowing demand.
 Electrification access remains very low standing at about
12% nationally and only 6% in rural areas.
 Country is well endowed with renewable energy sourcesthat are largely unutilized.

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3. POLICY FRAMEWORK IN THE ENERGYSECTOR
A: THE ENERGY POLICY FOR UGANDA GOAL: To meet the energy needs of Uganda’s population for social andeconomic development in an environmentally sustainable manner

 OBJECTIVES:
 To establish the availability, potential and demand of the various

energy resources in the country
 To increase access to modern affordable and reliable energy
services as a contribution to poverty eradication
 To improve energy governance and administration
 To stimulate economic development
 To manage energy‐related environmental impacts

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Strategies to meet the Objectives
Objective 1: To establish the availability, potential anddemand of the various energy resources in the country.
To meet this objective, Government shall: Prepare a database on all the available energy
resources and energy consumption patterns.
 Build the necessary local capacity to acquire therequired data and assess and evaluate the resources.

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Objective 2: To increase access to modern affordable and reliableenergy services as a contribution to poverty eradication.
To achieve this objective the Government shall: Attract private capital and management into the energy sector.
 Promote competition between energy service providers.
 Promote the development of markets in energy technologies
and services.
 Put in place a conducive environment to accelerate rural energy
supply and access..
 Intensify provision of consumer information, education andtechnical advice in the use and conservation of energy.
 Work with financial institutions to establish sustainablefinancing mechanisms for energy programmes.

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Objective 3: To improve energy governance and administration.
To achieve the above objective Government shall: Clarify the roles and functions of the various institutions
involved in the energy sector.
 Create a transparent legal and regulatory framework
 Build capacity at the national and local levels for better
formulation and implementation of energy policies andprogrammes.
 Build the capacity of regulatory agencies to provide even‐handed and predictable regulation.
 Develop incentives to retain local human resource for theenergy sector.

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Objective 4: To stimulate economic development.
In order to achieve the above objective, Government
will adopt the following strategies:
 Encourage competition within the energy markets toachieve efficiency.
 Attract investments in energy services provision byproviding appropriate incentives.
 Ensure energy supply security and reliability.
 Promote energy trade within the region.

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Objective 5: To manage energy‐related environmental impacts.
To meet the above objective, Government shall: Promote the use of alternative sources of energy andtechnologies which are environmentally friendly.
 Sensitise energy suppliers and users about theenvironmental issues associated with energy.
 Work towards the establishment and acceptance of broad
targets for the reduction of energy‐related emissions thatare harmful to the environment and energy users.
 Promote efficient utilisation of energy resources.
 Strengthen the environment‐monitoring unit in the energy
sector.

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B: RENEWABLE ENERGY POLICY FOR UGANDA 2007

 It aims to provide a framework to increase in significant
proportions the contribution of renewable energy in theenergy mix.

Main features:
 Introduced the feed in tariffs.
 Standardized Power Purchase Agreements.
 Obligation of fossils fuel companies to mix products with

biofuels up to 20%.
 Tax incentives on renewable energy technologies.
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Key Principles of the Renewable Energy Policy

The Key Principles on which this Policy is based are:
 Energy is essential for poverty eradication, regional equity andsocioeconomic development.
 Reliability, efficiency and sustainability are essential in the successful
deployment of renewable energy technologies.
 Renewable energy enhances energy diversity, security andindependence.
 Public‐private partnerships will form the basic mechanism forrenewable energy investments.
 Energy pricing will be based on full economic, social andenvironmental costs,
 The avoided cost principle will be used for determining feed in tariffs.
 Integrating the gender dimension in renewable energy planning andmanagement.
 Enhancement of stakeholder participation.
 Enhancement of market competitiveness of renewable energytechnologies.
 Ensurering the sustainable supply and utilization of energy resources.

Policy Objectives

IEEJ : July 2011

In order to achieve the Policy Vision and Goal, the following supporting
objectives will be pursued:
 Maintain and improve the responsiveness of the legal and institutionalframework to promote renewable energy investments.
 Establish an appropriate financing and fiscal policy framework for RET
investments.
 Mainstream poverty eradication, equitable distribution and genderissues in renewable energy strategies.
 Acquire and disseminate information in order to raise public awarenessand attract investments in renewable energy sources and technologies.
 Promote research and development, international cooperation,technology transfer and adoption of standards in renewable energy
technologies.
 Utilize biomass energy efficiently, so as to contribute to themanagement of the resource in a sustainable manner.
 Promote the sustainable production and utilization of biofuels.
 Promote the conversion of municipal and industrial waste to energy.IEEJ : July 2011

4. KEY PROGRAMES BEING IMPLEMENTED
Government’s Priorities in the Sector
In line with the Energy Policy, Government has set as
the major priorities as:to increase electricity generation capacity;to increase access to modern energy services andin particular Rural electrification; andto promote efficiency in energy utilization.

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Status of the Bujagali Hydropower Project The Bujagali plant 250MW is being developd by BEL a private
developer Salini of Italy is the main contractor of the EPC.
 Commissioning of the first turbine of 50 MW is expected inOct 2011.
 Government provided US$17.5 million out of the Energy Fundto implement the Resettlement Action Plan (RAP) for theBujagali Transmission lines.
 Challenge is high tariffs by private developer.

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Other Large hydros Being Developed.
 Karuma Hydropower Project (600MW): The Studies for thisproject have been concluded. The procurement process toacquire a contractor to do the construction has started.
Construction is expected to start in 2012. This is being
developed as a pure public project using locally generated funds.
 Isimba Hydropower Project (120 MW): This is the third
project being developed. It has an estimated capacity of 120 MW.
Feasibility studies for the site will be completed in end of 2011.
This project will be developed in partnership with the privatesector.
 Ayago Hydropower Project (600): This project is the fourth
project to be developed soon. The prefeasibility studies werecompleted with the support of the Japanese government. WithJICA support full feasibility studies will now be undertaken later
this year. Project to be developed as a Public Private Partnership

Renewable Energy Projects

IEEJ : July 2011

The following renewable energy projects are underdevelopment:
Kakira Sugar Works Cogeneration facility currently
provides a total of 12MW to the grid.
Kinyara Sugar Works has a Cogeneration facility
providing a total of 5MW to the grid
Nyagak small hydropower project 3.5 MW is underconstruction. When completed it will provide power
to the West Nile region replacing the 1.5 MW
thermal plant in Arua.
Bugoye 13MW small hydropower project in Kasese
district: construction was completed and plantcommissioned on 7th Oct 2009.
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Renewable Energy Projects Cont’d

IEEJ : July 2011

Mpanga 18MW small hydropower project in
Kamwenge district: Construction is in progress.
Plant was commissioned early 2011
Buseruka 10MW Small hydropower project in Hoima
District: Construction is in progress. Plant to becommissioned by Mid 2011.
Kikagati 10MW small hydropower project in Isingiro
distrrict: Construction to commence soon.
6.5 MW Ishasha small hydropower project in
Kanungu: Construction is in progress. Plant to becommissioned by Mid 2011.
Kisizi micro hydro power project in Rukungiri
district was upgraded from 60KW to 300KW(0.3MW).
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IEEJ : July 2011

Other co‐generation: The two sugar industries namely
Lugazi and Kinyara with current generation capacities of1.6MW and 1.7MW respectively will have their capacities
upgraded in order to supply to the minigrid.
With factory expansion Lugazi has potential to produce
8MW while Kinyara can produce 20MW.

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Promotion of Efficient BiomassTechnologies
 Institutional stoves can savemore than 50% of wood
consumption needed forcooking.
 They are free from smoke
which is responsible forrespiratory diseases arisingfrom indoor pollution.

Institutional Stove constructed in one of the Prisons

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Dissemination of Solar Systems

Solar PV Systems installed at a Health Centre

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PROMOTION AND DEVELOPMENT OF NUCLEAR ENERGY With increasing demand for power, it is envisage thatnuclear energy will play a major role in the power
generation in the long‐term.
 There are advantages with use of nuclear for power
generation which include: Limited Environmental Impacts such as greenhouse gases emissions, acidrains, and deforestation,
 High Energy Density, hence requiring much less land per MW installedcapacity, Although having very dangerous wastes, the volumes of wastes are quite
small make it easy to manage on site, Low energy cost, High reliability with high capacity factor.
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5. KEY STATISTICS FROM THE ENERGY BALANCE
Uganda’s Energy
Supply Pattern•Over 94% of theenergy used isbiomass•1.3% is electricity•Oil products
account for only
4.5%

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Energy Consumption Pattern Total Energy
consumption in 2010 was10,588,068 ToE
 Peak demand ofelectricity is about 600
MW Demand is growing at
8% per annum Only 12% of population
has access to electricity.
 Per Capita consumptionof electricity is about 70kWh.

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6. BOTTLENECKS IN POLICY FORMULATION Lack of adequate statistics
 Current status is such that level of access to energy islow. Need to balance between meeting development
goals while ensuring low carbon emission.
 While renewable energy sources contribute toreduction in emissions the issue of affordability
remains a big challenge.
 Environmental concerns over the energy sources.
 Growing concerns by a number of Environmentallobbies

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7. PROPOSED SUBJECTS TO STUDY Integrating climate change in energy policies. This isbecause of the growing concerns of increase inemissions arising out of energy production.
 Renewable energy policies: This is because fossil fuels
will run out in future as well as the fluctuating prices,
there is therefore need to diversify.
 Energy conservation. Its is cheaper to avail energy byenergy conservation that to generate the sameamountIEEJ : July 2011

Thank You for Your Attention !!!

Contact : report@tky.ieej.or.jp