A Publication of AFREPREN/FWD
and HBF – HA Initiative on
Renewables in Eastern and Horn
Uganda is well endowed with a
variety of renewable energy resources that can be used for power
generation. Presently the total installed capacity at Kiira and
Nalubale hydropower stations in Jinja is about 380 MW. However, only
160 MW is being utilised due to reduced water levels on Lake
Victoria as a result of drought experienced in 2004 to 2006. The
total installed capacity of mini hydropower generation is about 15.6
MW. This includes Mobuku III (10 MW), Mobuku I (5.4 MW), Kuluva
(0.12 MW), Kagando (0.06 MW) and Kisiizi (0.06 MW).
The shortfall in power supply has necessitated the installation of
about 100 MW thermal plants which provide power at a high cost to
the consumers. Power supply shortfall has also led to load shedding
which has a negative impact on the economic growth of the country.
The current state of affairs demands that the country increases the
share of electricity produced from renewable energy sources such as
cogeneration in the energy mix.
While Uganda faces a shortfall in power supply and high electricity
tariffs, renewable energy sources (including cogeneration) in the
country remain largely untapped. These include small hydro, biomass,
solar, wind, municipal waste and geothermal resources. These
renewable energy sources have additional benefits such as having
minimal emissions of greenhouse gases and high efficiency of energy
production as is the case with cogeneration.
The key objective of this study was to investigate what it would
take to achieve a fully participatory and vibrant sustainable energy
sector in Uganda with specific emphasis on cogeneration.
To achieve this objective, literature surveys were undertaken
including extensive reviews of a wide range of reports and
publications. Discussions were also held with major stakeholders in
the cogeneration business who included: Policy makers from the
Ministry of Energy and Mineral Development, representatives of the
Rural Electrification Agency, sugar factory managers,
representatives of the East African Development Bank and
representatives of the Uganda Electricity Transmission Company
Limited (UETCL). Relevant data and statistics were collected using
questionnaires. Additional relevant information was obtained from
the internet. Moreover, structured interviews were conducted.
Cogeneration is an efficient way of providing thermal heat as well
as electricity. It also has a number of additional benefits to the
country which include job creation within rural communities as well
as improving the environment.
However, the existing policy framework has not attracted many
companies into the development of renewable energy projects
including cogeneration. In addition, there are several barriers to
promoting community based cogeneration. These barriers can be
removed by putting in place specific measures to address them.
Government has addressed some of the barriers by introducing a
Renewable Energy Policy which provides a solid investment framework
for promoting the development of cogeneration. However, the key
challenge facing local communities in cogeneration investment is
accessing financing and has yet to be fully addressed.
While designing community - driven cogeneration projects, the bottom
up approach is preferred so that communities can feel that they are
part of the cogeneration projects. The best model of operation
appears to be the concession approach which is put in place with
technical and financial support by government.
The policy framework promotes community participation in rural
energy investments such as small scale rural electrification
initiatives. The policy, however, does not adequately address
community participation in larger energy projects (relative to the
communities’ incomes) such as cogeneration investment.
At the macro – economic level, cogeneration projects in Uganda are
relatively small making it hard for them to attract financing on
their own. However, they can be promoted in a bundled fashion, such
as under the Energy for Rural Transformation programme which has an
existing framework to support project development.
To sum up, there is need to review the existing policy and
regulatory framework to ensure that key barriers are removed and
adequate incentives are in place to promote local participation in
This report consists of five chapters. Chapter one presents a
background review of the energy sector in Uganda including the
current status of renewables contribution to the Uganda energy
Chapter two assesses cogeneration development in Uganda, its current
status as well as key stakeholders involved in the cogeneration
industry in Uganda.
Chapter three examines the involvement of local groups in the
cogeneration industry and provides suitable models for local groups’
participation in cogeneration. Chapter four reviews the policy and
regulatory frameworks supporting cogeneration and limitations to
local community participation. The final chapter (chapter 5)
presents conclusions and recommendations for promoting community
participation in cogeneration in Uganda.
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