Working Paper 32

Occasional Paper 32: Sustainable Energy & Community Participation in Biomass - Based Cogeneration in Africa

Sustainable Energy and Community Participation in Biomass-based Cogeneration in Africa

Compiled by

Stephen Karekezi, John Kimani, Justus Mbithi, Jared Atiang and Oscar Onguru

	Table of Contents
	Acknowledgements List of Abbreviations and Acronyms List of Tables List of Figures	3 4 8 8
1.0	Background to the study	9
	1.1 Introduction to the study	9
	1.2 Rationale for the Study	11
2.0	Background to the Energy Sector in Kenya and Uganda	18
3.0	Cogeneration Development in Kenya and Uganda	21
	3.1 Status of Cogeneration in Kenya and Uganda	21
	3.2 Links to Rural Areas	24
	3.3 Justification for Cogeneration in Rural Areas	26
	3.3.1 Employment/Poverty Alleviation	26
	3.3.2 Increased Opportunities for Small Scale Farmers	27
	3.3.3 Macro Economic Benefits and Rural Electrification	27
	3.4 Key Stakeholders in the Cogeneration Industry in Kenya and Uganda	29
4.0	Involvement of Local Groups in Cogeneration	35
	4.1 Suitable Models for Local Groups Participation	36
	4.1.2 Buying Shares in the Privatised and New Sugar Factories	38
	4.1.3 Investing through Cogeneration IPPs	38
	4.1.4 Investing through Co-operatives	38
	4.1.5 Co-investment	39
	4.1.6 Concession	39
	4.1.7 Build Own and Transfer (BOT) and Build Own Operate and Transfer (BOOT)	40
	4.2 Opportunities for Local Groups Involvement in Cogeneration	40
	4.3 Barriers and Limiting the Participation of Local Groups in Cogeneration	42
5.0	Policy and Regulatory Framework for Sustainable Local Community Participation in Cogeneration	45
6.0	Study Conclusions	51
	References	53