Involve private sector in energy development

The government should find ways to increase private sector participation in renewable energy development. This will scale up resources for deployment of alternative renewable energy sources that remain largely untapped; it will also increase the much-needed energy supply in the country.This is critical as Uganda cannot achieve its desired economic development without adequate and affordable 

energy services. Energy is still inadequate, inaccessible, unreliable and unaffordable to the common man and woman in Uganda and power in Uganda remains the most highly priced in East Africa. This is even more heightened in rural areas where access to modern energy still lags behind at less than 4 per

cent, yet most of Uganda’s population is rural-based.The energy shortage in the country and the ever-growing energy requirements like the recent commissioning of a mega steel factory in Namanve, Mukono District that will consume up to 48MW of power, necessitates government

to look to local resource mobilisation in development of alternative renewable energy sources to increase energy supply. Increased investments in renewable energy are required to achieve sustainable energy for all, for the well-being of the poor and for environmental sustainability.

The government should recognise the role private sector can play through public –private partnerships as this remains one of the viable ways through which to scale up resources for development of alternative renewable energy sources, to achieve the supply and demand balance, deliver affordable energy services to Ugandans, for grid extension in rural areas, as well as for off grid systems based on renewable energy technologies for 

remote areas.

It is, therefore, necessary for government to take measures that will attract private sector participation in renewable energy development. There is need to increasingly engage private sector and renewable energy projects should be well designed to attract the necessary finance from the private sector.

The investment climate in Uganda needs to be improved; constraints such as government red tape and bureaucratic tendencies that bring about unnecessary delays and lengthy procedures that restrain private sector investors should be dealt with and replaced with faster and more transparent systems. Investor perceptions and concerns on corruption should be allayed by having more transparent systems and corruption suspects should be investigated and punished. Also, the criteria on incentives should be more transparent.

Risk mitigation facilities should be established for renewable energy projects and initial project development of capital intensive projects can be undertaken by the government as a way of risk mitigation since there are many risks associated with development of renewable energy projects. This will spur local financing for these projects, especially at small scale level.Private sector involvement and investment in renewable energy development will increase energy supply for more Ugandans to get access to cheaper and cleaner energy and draw the country on a path to achieving sustainable energy for all.

http://www.monitor.co.ug/OpEd/Letters/Involve-private-sector-in-energy-development/-/806314/2040470/-/2v2583/-/index.html

Diana Taremwa Karakire
Renewable energy in Uganda

Businesses in Uganda should adopt solar energy for stable power supply

Heavy reliance on hydro-power has seen most households, businesses and institutions such as hospitals continue to suffer load-shedding as a result of power supply shortages in Uganda.Ugandans need to adopt solar energy systems as this will allow stable power supply to run their businesses, power households, hospitals and schools.

Uganda has an estimated 200MW of solar energy resource (Renewable energy policy 2007) that remains to be put to significant use. Uganda on average receives 325 days of bright sunlight per year which makes it the most abundant renewable energy source available and the potential to power virtually any location in the country.Solar energy is a cheap sustainable power source for many Ugandans as the sun is free and inexhaustible. Solar energy is harvested using photovoltaic panels that convert the sun’s radiation directly into power without affecting the environment (clean) and can generate enough power to light many households in the country.

Current Statistics from Electricity Regulatory Authority (ERA) indicate that peak demand for power is growing by 15% every year while generation is growing at 4.7%.This ever increasing power damand has resulted into unstable power supplies and shortages in the country that necessitate loadshedding in some areas. Therefore it is vital for Ugandans to adopt solar systems to avoid power blackouts..

http://www.monitor.co.ug/OpEd/Letters/Adopt-solar-energy-for-stable-power-supply-for-businesses/-/806314/2053808/-/xoar7ez/-/index.html

Diana TaremwaKarakire

Geothermal power: Kenya's lesson to Uganda.

Built on an 80 square kilometre piece of land, Olkaria is Africa’s largest geothermal power plant producing 167MW- enough to serve over 500,000 households. Though not part of the attraction in Hell’s Gate National Park in Kenya, the huge maze of pipes, used to carry steam from underground, make an attraction of their own.

The atmosphere smells of rotten eggs, an indication of the presence sulphur gases in the air. Also, hot springs can be spotted at various locations.

This is one of the ways to know whether hot rock or magma, used in production of this energy, exits underneath.
“You can also tell by existence of geysers, tumaroles and natural sulphur coming out of the ground,” explains Henry Wesula, the senior operations manager of KenGen, a state owned power producer.

According to KenGen, the current ongoing expansion is to provide Kenya with 1260MW by 2018. Although it cost the country $1.6b (about Shs4.1 t), Wesula says it eventually pays off as operation costs are very minimal, the energy source is renewable and production can be done throughout the year. Currently, geothermal energy contributes 10 per cent of Kenya’s energy supply and is projected to increase to 7,000 MW by 2030, providing half of Kenya’s energy.

“In the 80s when we entirely relied on hydro power, we had a very severe drought and had an over 70 per cent power rationing. we do not want that to happen again so we are having a mix of all energy,” said Wesula, adding, “We are planning to set up a coal plant in Mombasa, further developing the wind energy project to avoid any hitches in power supply.”

It was not a smooth road for Kenya to reach where they are. After its first production in the 1970s, the project stalled in 1992 only to be revamped in 2003 when the government started investing in the project again.

Ideas for Uganda
Wesula says, not only would exploration of geothermal energy provide Uganda with alternative energy sources but also would help the country achieve its vision of becoming an industrialised country in the next few years.

“We already know that Sudan and Egypt are against building dams along the Nile, in the event of a problem there will be no other source of energy for Uganda,” Wesula said adding, “Any country that wants to be industrialised can’t afford to have power rationing.”
According to Diana Taremwa from the Africa Institute for Energy Governance, Uganda is currently on the brink of yet another load shedding roaster due to electricity demand outpacing supply. This would be aggravated by the country solely depending on hydro for her clean energy. Last year, Uganda Electricity Transmission Company Ltd (UETCL) projected that demand for electricity was to increase from 10 to 15 per cent this year, whereas electrification rate is stagnant at only 12 per cent.
UEGCL, the owner of the Kiira and Nalubaale hydropower stations which have a combined capacity of 380MW, averagely produces only 180MW. “Producing geothermal project will enable substantial increase in the provision of additional reliable and clean power generation capacity to Ugandan households, businesses and industries which will in turn improve electricity coverage in Uganda,” Taremwa said.

A geophysical survey by KenGen, revealed that Uganda has an estimated 400MW of untapped geothermal energy, mostly locally in the western part of the country where the Great Rift Valley and escarpment is located.

“Geothermal technology is equally important in an economy still faced with inefficient power supplies-evidence being that the much hyped 250MW that came on line last year has already been swept off the grid,” Taremwa said adding, “To compare oil and geothermal energy, you need to appreciate the multiplier effect created by a refinery - chemical production, fertilisers for the agricultural sector, jet fuel, petrol, kerosene, plastics and many more others but the two are very important for the economic development of Uganda.”

By flanyero@ug.nationmedia.com

http://www.monitor.co.ug/artsculture/Reviews/Geothermal-power--Kenya-s-lesson-to-uganda/-/691232/1918180/-/10oo0ni/-/index.html

Uganda’s geothermal energy requires investment boost.

Uganda has an estimated 400MW of untapped geothermal energy. Kabaale, Hoima and Kasese districts in western Uganda, where the Great Rift Valley and escarpment are located, have the greatest potential for generating geothermal energy.

Earlier this year, government, through Uganda Electricity Transmission Company, signed a power purchase agreement with AEE systems an American based firm, in joint venture with local company, Katwe Geothermal, to start the exploitation of geothermal energy in Kasese district. This was a remarkable step in terms of diversifying Uganda’s electricity sector.

Currently, Uganda mostly relies on hydro- power with current generation capacity at 800mw. However, climate change impacts such as droughts and erratic rainfall have made hydro-power unreliable, reducing the country’s adaptive capacity. Hydropower dams in Uganda have continuously produced less power than initially projected capacity. For instance, Owen Falls currently produces 74MW instead of planned 180mw and Kiira dam produces 50mw instead of the planned 200mw.

In turn, this has seen Uganda’s electricity demand rise above its supply electricity tariffs have more than doubled over the past five years, load shedding is the order of the day and electrification rates are still low. Also, Transmission from major generation points, like Bujagali in Buikwe district, to other parts of the country mean higher costs and greater risk of energy loss. All these problems necessitate dedicating efforts to geothermal energy development to diversify Uganda’s electricity sector.

Geothermal has numerous advantages over other energy sources .geothermal energy is at the forefront of low-carbon options as its green energy with no adverse effects on the environment, it is not affected by drought and climatic variability. This makes geothermal the most suitable source for electricity generation in the country.

In the meantime, our neighbours in Kenya boast of having the biggest geothermal plant in East Africa. Olkaria geothermal plant cost Kenya $1.6billion to put up but the country has ripped in terms of lower operation costs and increased generation of electricity. The plant supplies 167 MW of electricity, enough to serve 500,000 households. By 2030, the plant is expected to supply 7000 MW.

Yet, it was not all smooth for Kenya.  Olkaria was built in the 1980s, at a time when Kenya’s hydro electricity supply was being threatened by severe drought and the Country’s power rationing stood at 70%. The project stalled in 1992 and was only revived in 2003 when the government took initiative to exploit geothermal potential. Kenya’s geothermal project is a model other African countries can learn from and transform the lives of the common man and woman.

Today, in terms of geothermal energy, Uganda is where Kenya was nearly three decades ago. It does not help that the history of investment in the energy sector in Uganda is mired with corruption and lack of transparency. The recent Karuma dam project was clouded by inflated costs, unfair resettlement policies and unexplained delays. The complicated political-economic investment climate in Uganda, coupled with high initial set up costs, discourages any would-be investors in geothermal energy.

A few efforts have been geared towards solar energy and even fewer to wind energy. Both efforts are remarkable but, like geothermal energy, they have failed to hold the government’s interest. Intensive efforts in investing in geothermal energy, alongside other sources are needed to increase electricity generation, boost supply and meet the ever growing electricity demand. This will secure and sustain Uganda’s electricity sector.

http://www.monitor.co.ug/OpEd/Commentary/Uganda-s-geothermal-energy-requires-investment-boost/-/689364/2024126/-/10qcaic/-/index.html

Diana Taremwa Karakire. 

Uganda government should Increase funding for alternative energy sources for power generation.

Increase funding for Uganda's alternative energy sources for power generation

With the recent commissioning of a mega steel factory in Namanve ,mukono district that needs 48MW  to operate and the fact that currently the power demand surpasses supply, There’s need to develop alternative renewable energy sources such as geothermal for a  more resilient and stable power supply to meet the increasing consumer demand.

Most of Uganda's 800 MW power output comes from hydro power generation. This has made Uganda vulnerable to climate change impacts, such as prolonged droughts and erratic rainfall patterns, this coupled with continuous degradation of the environment around L. Victoria raises questions about the sustainability of Uganda’s dams and reliability of Hydro-power. Also, statistics from Electricity Regulatory Authority indicate that peak demand for power is growing by 15% every year.

There’s need to develop alternative renewable energy sources such as geothermal for a  more resilient and stable power supply to meet the increasing consumer demand, reduce power shortages and undesirable load shedding. This necessitates dedicating efforts to investing in geothermal energy.

With an estimated 400MW of untapped geothermal energy potential, Uganda is yet to put this to use. Earlier this year, government, through Uganda Electricity Transmission Company, signed a power purchase agreement with AEE systems an American based firm, in joint venture with local company, Katwe Geothermal, to start the exploitation of geothermal energy in Kasese district. This was a remarkable step for government as it has over-hyped large hydro-power projects at the expense of other energy sources.

Geothermal has numerous advantages. It’s a low carbon, green energy source with no adverse effects on the environment, not affected by drought and climatic variability which makes it a suitable energy source for power generation .Government should factor climate change impacts in any further energy investments.

In the meantime, our neighbours in Kenya boast of the Olkaria geothermal plant, biggest geothermal plant in East Africa, the country has ripped in increased generation of electricity as the plant supplies 187 MW of electricity, enough to serve 500,000 households. By 2030, the plant is expected to supply 7000 MW. Kenya’s geothermal project is a model other African countries can learn from and transform the lives of the common man and woman.

Government should increase budget allocations and encourage Public-private partnerships as this will scale up resources for investment in alternative renewable energy sources.Also, it is paramount to invest in training highly skilled technicians and researchers because geothermal development requires highly qualified people.

Diana Taremwa Karakire