{"id":604,"date":"2018-11-01T09:17:16","date_gmt":"2018-11-01T09:17:16","guid":{"rendered":"http:\/\/fortuneofafrica.com\/ug\/energy-sector\/"},"modified":"2018-11-01T09:17:16","modified_gmt":"2018-11-01T09:17:16","slug":"energy-sector","status":"publish","type":"page","link":"https:\/\/afrifacto.com\/ug\/energy-sector\/","title":{"rendered":"The Energy Sector of Uganda"},"content":{"rendered":"

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Profile for Energy Sector of Uganda<\/strong><\/p>\n

Uganda’s energy potential<\/strong><\/p>\n

Uganda has the following potential sources of energy;<\/strong><\/p>\n

Hydropower potential\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4,500MW<\/p>\n

Biomass co-generation\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,650MW<\/p>\n

Geothermal\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 450MW<\/p>\n

Peat power\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0800MW<\/p>\n

Others potential sources include petroleum energy, wind , solar power , fossil fuel thermal \u00a0and \u00a0nuclear energy .<\/p>\n

Renewal and Non-Renewal Sources<\/strong><\/p>\n

Renewable Resources<\/strong><\/p>\n

The renewable resources include hydro, wind, solar, geothermal, biomass and peat.<\/p>\n

Non \u2013renewal resources<\/strong><\/p>\n

The non-renewable sources include bio fuel and fuel wood.<\/p>\n

Uganda energy consumption<\/strong><\/p>\n

The total energy consumption in Uganda is estimated at over 5 million tons of oil of which 93% is derived from biomass (wood\/ charcoal and agricultural residue); electricity and oil products constitute 7%. About\u00a0 70.3 % of the energy is consumed in residential activities, 13.6% for\u00a0 commercial ,\u00a0 10.7% for Industrial , 5% for transport\u00a0 and 0.4% other uses . Most of the energy consumed for residential activities is woody biomass energy mainly because of high tariff and low generation of\u00a0 electricity power.<\/p>\n

Installed electricity capacity<\/strong><\/p>\n

Uganda is still deficient in infrastructure, especially energy, roads, air transport, water transport and railways.. Therefore the Government is\u00a0\u00a0 committed to improve electricity generation and supply to support industrialization, as well as ensuring universal access to affordable, reliable and modern energy. According ERA, the country\u2019s current installed generation capacity totaled about 930MW, as of end of 2017. An additional 783MW will be added to the national grid on completion of the 600MW Karuma and 183 MW Isimba power projects during \u00a0FY 2018.<\/p>\n

The\u00a0 Government plans to build additional electricity generating capacity at Murchison Falls (700MW), Oryang (392MW), Uhuru (350MW), Kiba (300MW) and Albatros thermal plant (50MW) among others. The additional generation will give Uganda a capacity of 4,356MW.<\/p>\n

Per capita electricity consumption<\/strong><\/p>\n

Uganda has one of the lowest electrification rates in Africa, at 20% of the population, and one of the lowest per capita electricity consumption rates in the world, at 71 kWh per capita per year. This is compared to the SSA average of 552 kWh per capita and the world average of 2,975 kWh per capital.<\/p>\n

Rural electrification<\/strong><\/p>\n

Uganda has the lowest electrification rates in Africa, at 22% in 2017. Rural electrification is estimated at less than 7 % of the rural population. About 84% of population of Uganda live in rural areas.<\/p>\n

Market for solar energy<\/strong><\/p>\n

The market includes non-electrified rural households, schools, businesses and non-commercial establishments such as churches, mosques, health centers and community centers.<\/p>\n

Market for micro hydro power<\/strong><\/p>\n

The market segments include electrifying rural households, schools, businesses, health centers, hotels, real estate housing projects, industries and non-commercial establishments such as churches, mosques, and community centers.<\/p>\n

Market for charcoal briquettes<\/strong><\/p>\n

The market for charcoal briquettes includes rural and urban households, schools and institutions like prisons and hospitals.<\/p>\n

Regulatory framework<\/strong><\/p>\n

Ministry of Energy and Mineral Development (MEMD)<\/a><\/strong><\/p>\n

The ministry is responsible for establishing, promoting the development, strategically managing\u00a0 and safeguarding \u00a0the rational and sustainable exploitation and utilization of energy and mineral resources for social and economic development.<\/p>\n

Legal framework<\/strong><\/p>\n

The\u00a0 Uganda\u00a0 electricity sector is regulated under the\u00a0Electricity Act 1999, Cap 145<\/a>, the Energy Policy, the National Environment Act Cap 153 and the Statutory Instruments and Guidelines issued by Electricity Regulatory Authority (ERA). The petroleum is regulated under Petroleum (Exploration, Development and Production) Act<\/strong>.<\/p>\n

The electricity sector<\/strong><\/p>\n

The sector has the following three companies with responsibility as indicated;<\/p>\n

The Uganda Electricity Generation Company Limited (UEGCL)<\/a><\/strong><\/p>\n

The company manages the electricity generation.<\/p>\n

Uganda Electricity Transmission Company Limited (UETCL)<\/a><\/strong><\/p>\n

It manages the electricity transmission.<\/p>\n

Uganda Electricity Distribution Company Limited (UEDCL)<\/strong><\/p>\n

It manages the electricity distribution. All the three companies are licensed and regulated by ERA.<\/p>\n

The Electricity Regulatory Authority (ERA)<\/a><\/strong><\/p>\n

ERA\u00a0\u00a0 regulates the Uganda\u00a0\u00a0 electricity sector.<\/p>\n

Electricity distribution companies<\/strong><\/p>\n

The licensed companies include\u00a0Umeme Limited<\/a>, West Nile Rural Electrification Company (WENRECo), Uganda Electricity Distribution Company Limited (UEDCL), Bundibugyo Electricity Cooperative Society (BECS); Kyegegwa Rural Energy Cooperative Society (KRECS); Pader-Abim Community Multi-Purpose Electric Cooperative Society (PACMECS); Kilembe Investments Limited (KIL); and Kalangala Infrastructure Services Limited (KIS). Umeme Co. Ltd. is the largest energy distributor in Uganda, distributing 97 percent of all electricity in the country.<\/p>\n

Challenges in the energy sector<\/strong><\/p>\n

The challenges include the following:<\/p>\n