Ugandan company takes the frontline in the fight against deforestation and emissions.

Seeing the wood for the trees in Uganda

Ugandan social enterprise Eco Fuel Africa (EFA) has come up with an innovative method for turning agricultural waste into clean biomass energy, leading the way on how to cope with emissions and rampant deforestation from wood fuel usage in this agriculturally dependent East African nation.

 EFA uses coffee husks, corn cobs, ground nut shells, sugarcane waste, and rice husks to make clean and affordable briquettes. The briquettes are a carbon-neutral cooking fuel that functions the same as wood fuel, but is highly efficient, cleaner, smokeless, and burns longer. They address one of the largest causes of emissions and deforestation, while also improving household health in Uganda.

“I got the idea of making briquettes when I visited my home village in rural western Uganda and found that my sister had missed school because she had to walk long distances to collect firewood,” says Moses Sanga, the director of EFA. “The trees that surrounded our home were gone, and she had to walk longer distances to gather firewood. I had to find a solution.” But this was not the only thing Sanga noticed in his hometown. “There was plenty of litter everywhere,” he says. “Uganda is primarily agricultural, but farm waste is just abandoned.” It was then that Sanga began researching and learning everything he could about turning organic agricultural waste into fuel.

Armed with a bachelor’s degree in finance and with the help of engineering students from Makerere, Uganda’s leading university, he embarked on a mission to design kilns and briquetting machines using oil drums. This led to the founding of EFA in April 2010.

How it happens

The locally-made kilns carbonise agricultural waste to create char. The briquetting machines use high pressures to mould loose char into compact and solid fuel briquettes that can be used for cooking, boiling water, or heating rooms. EFA provides training to marginalized rural farmers on how to turn their agricultural waste into char.

After the training, they are offered a chance to take home a kiln on a lease-to-own basis. “We are currently working with 3,500 farmers who use our kilns,” says Sanga. “About 80% of the produced char is sold directly to EFA and each farmer earns at least $30 (€26.8) per month in additional income. 
EFA then presses the char into cleanburning fuel briquettes.” The farmers are also trained on how to mix the biochar with local organic nutrients to make fertiliser, which they then put in their gardens. This has helped them increase their food harvests by more than 50% ensuring food security and reduced malnutrition. EFA also works with a network of female micro retailers that sell the briquettes to end-user customers. Selected women are trained for three days and at the end of the training, EFA builds each of them a kiosk to use as a retail shop to sell briquettes in their local communities. Already, EFA has created a network of 2,000 female retailers in Uganda. Each of these women retailers earns at least $152 per month. “By using agricultural waste, we are creating clean, affordable and accessible energy, helping to create socially and economically thriving communities,” says Sanga.

EFA currently provides fuel for more than 115,000 Ugandan families and is responsible for saving 500,000 acres of forests in averted deforestation. It also sells its products to institutions like schools, hospitals, hotels, and restaurants. “Our goal is to provide clean cooking fuel to every energy-poor household in Uganda by 2020 and a 150,000 tonne reduction in CO2 emissionsper year,” Sanga concludes. Another company helping Ugandans embrace clean energy is Pamoja Cleantech, also specialising in waste-toenergy projects. It converts waste products into high energy density fuel pellets for industrial and domestic use. The firm also makes energy-efficient cooking stoves and operates microgrids powered by biomass fuels for direct electricity distribution in rural areas.

Government support

The government of Uganda has long regarded biomass energy as a viable option for clean energy generation. Uganda’s Renewable Energy Policy was put in place to increase the share of renewable energy in the energy mix from the current 4% to 61% of the total energy consumption by 2017. The policy recognises biomass as a significant source of modern, clean forms of energy with potential to contribute to Uganda’s energy sector development. The government has also put in place a legal and institutional framework to attract private investments in development of modern energy forms. This includes the introduction of specific tax regimes that favour modern energy, such as preferential tax treatment and tax exemption. According to statistics from the Ministry of Energy and Mineral Development, Uganda’s energy consumption matrix currently stands at 90% biomass, 7% petroleum products, and 2% electricity produced from hydro and thermal power plants. The majority of the population relies on wood based fuels in forms of firewood and charcoal as a main source of energy for cooking. This has led to massive environmental degradation and health hazards among households. According to the Uganda Demographic Health Survey (2006), cooking with wood fuel is a major cause of respiratory illnesses such as lung cancer among Ugandans, given that it emits a lot of smoke and affects the quality of air in a household. Worse still, using biomass hugely depends on traditional technologies such as three-stone fireplaces and charcoal stoves that are quite inefficient in their fuel utilisation, leading to excessive use and demand for firewood.

According to Godfrey Ndawula, the Commissioner of Renewable Energy in the Ministry of Energy and Mineral Development, 18 million tonnes of firewood is burned every year, resulting in deforestation on a massive scale. “EFA will help us save our forests and avert the 13,000 reported premature deaths resulting from indoor air pollution,” he says.

‘Need to raise awareness’

Despite its important economic and social role, uptake of modern biomass energy is still low in Uganda. According to a Ministry of Energy report on Uganda’s biomass energy situation, the country’s main challenge is not the supply of biomass but rather lack of awareness among the masses on modern forms biomass energy and lack of the appropriate technologies. Therefore, there is a need for intensive promotion and marketing both in urban and rural areas to increase uptake of modern biomass energy alternatives. “We need to raise awareness of the new improved biomass energy and environmentally-friendly cook stoves to reduce firewood consumption and global emissions,” Ndawula says. Biomass energy is also yet to receive recognition and prioritisation in terms of funding from government compared to other renewables such as hydro energy, which impedes its development. Uganda typically generates almost half of its modern energy output from hydropower dams along the River Nile. 
The micro-scale social enterprises that form the bulk of investment in the biomass energy subsector face a number of challenges, including maintaining appropriate financial and human resources to sustain operations, and cannot afford market development costs. Traditional financing through commercial banks or commercial lending institutions has not been a viable option for many of these enterprises. The inability to predict monthly sales, the lack of collateral and credit history, and the large informal economy mean that commercial banks hesitate to provide loans to businesses.
 However, the Ugandan government has established the Uganda Energy Credit Capitalization Company (UECCC) to assist micro-project developers interested in doing business in the biomass energy subsector in Uganda in attaining financial closure. Social enterprises are also looking to take advantage of the green climate fund and carbon financing in order to acquire funds and engage in product marketing and promotion, to help rural communities. “If biomass waste-to-energy projects are scaled up, it could allow rural Ugandans to embrace cleaner cooking methods that protect the environment,” says Ronald Kaggwa, an environmental economist at the Uganda National Environmental Management Authority. He adds: “If the country could turn more of its waste into energy, it would also bring it closer to its goals of switching to greener energy sources and reducing deforestation.”

According to Lighting Africa, a World Bank group programme to increase access to clean sources of energy, Africa has a large off-grid population. More than 590 million people live with no connection to their national electricity grid, exposing them to hazardous options. This is an indicator that biomass will continuously play an important role in Africa’s energy sector. Investment in efficient, clean and less polluting modern biomass energy should be a priority if Africa’s emissions are to be curbed and forest cover conserved.

dianakarakire@gamil.comx

Uganda Moves Closer to Landmark biofuels law

 Uganda, has joined the growing number of African countries moving to put in place legislations requiring the blending of biofuels into fossil fuels—a crucial stage in attaining sustainable development for the country’s nascent energy industry.

 President Yoweri Museveni has tasked members of parliament to pass the bill on bio-fuels by the end of the year.  In February Museveni commissioned a $35 million (€31.6m) bio- Ethanol power plant and distillery at Madhavani Group’s Kakira Sugar Works Ltd, in eastern Uganda .The plant has capacity to produce 32 million litres of ethanol fuel using the 74,000 tonnes of molasses a byproduct from the sugar production process.Speaking during the commissioning, Mr Museveni said the bill would be “expedited” to ensure that it’s in place within six months.

Should the legislation be passed as per the president’s set deadline, companies currently developing Uganda’s vast oil reserves will be compelled to mix their fuel products with at least 10% of the ethanol manufactured at Kakira sugar Ltd.The measure is expected to extend the life span of Uganda’s oil reserves, currently estimated at 6.5 billion barrels, in addition to lowering the pump price of fuel in the country.

According to the Joint Managing Director of Kakira Sugar Limited, Mr. Mayur Madhavani, the ethanol distillery, which commenced operations in November last year ,is already producing Kakira's Extra Neutral Alcohol ENA  for use in the beverages industry, and as a sanitizer in hospitals.

Uganda Breweries Limited UBL, a unit of UK brewer, Diageo Group are already using the ethanol to produce Uganda Waragi a popular local gin and a whole range of whiskies and spirits. Previously, Ugandan brewers would import ENA from South Africa and Mauritius but have since taken on Kakira as its leading supplier. For a country plagued with an ever widening trade deficit, it’s a welcome relief, analysts say.

 “If the bill comes into law and the nation adopts use of biofuels we are definitely going to see lots of benefits. Farmers will have many more crops that they can plant as sources of money and more job opportunities,” says Mr. Mayur

The bill which was tabled before Parliament by the energy ministry in December 2016 has been slow to pass. Under the parliamentary rules of procedure, once the minister has introduced the bill and it is considered read, as was the case in December, the bill is sent to the responsible committee to scrutinize it over a 45 days period before sending a final report back to Parliament for the second reading which is in this case is meant to be presided over by the minister of Energy. The 45 days have since elapsed without progress on the bill, prompting the president, who would nautically have the final say in the law to intervene.

Although Uganda already has policies in place, such as the Renewable Energy Policy 2007 and Energy policy 2002 respectively, which provide for the blending of biofuels such as ethanol with fossil fuels like diesel and petrol in regulated proportions, the oil companies have not shown strong enthusiasm to prepare for blending of the fuels when products are available.

Thus the need to provide a legal framework to compel the petroleum and oil marketing firms to not only carry out blending, but also regulate such blending by spelling out the ratios that would be followed.At 6.5 billion barrels Uganda’s oil reserves are the largest undeveloped reserves in the region and with blending, the life span can be extended by a further 10 years, from the current estimate of 50 years, says Irene Muloni, Uganda’s energy and minerals minister.

 “The oil we have in the ground is finite; we have to devise ways of prolonging its lifespan for the benefit of our people,” she says “Blending is one of those smart ways”

According to Frank Tumwebaze the minister of information and national guidance,the biofuels law is also, meant to enhance investment in the sector. Lack of a legal framework impedes investments in the biofuels production sector.

“Project developers in the field of biofuels require a secure market which has to be developed through legislation for them to invest in the sector”

“Legislation will enable the developers to access long term finance which is required in the biofuels industry, In addition, Legislation will create other incentives like tax rebates which will encourage investors to develop biofuels,” he says .Other than sugar cane, the avenues are enormous, including possible production from corn and other plants that are grown widely in the East African nation, which also grows more bananas than any other country in Africa.

 It is also envisaged that the biofuels law once in place will enhance mass production of biofuels crops such as maize, soya bean and sugarcane from which biofuels are made, and also lead to value addition through agro-processing and marketing, which would in turn increase rural earnings and open up employment opportunities in rural areas.

 Government of Uganda is also committed to reducing greenhouse gas emissions and contribute to the global fight against climate change. Biofuels production and utilization provides a cleaner and environmentally friendly fuel for industrial purposes, cooking, transport and power generation. 

In Uganda, only 10% of the population have access to clean energy and even less than 5% in rural areas according to statistics from the energy ministry. This has left many people cutting down trees for either charcoal or wood fuel.

It is estimated that Uganda annually loses about 100,000 hectares of forest cover to charcoal burners and firewood sellers. Figures from the 2014 Uganda Population and Housing Census indicate that 340,000 households in the capital Kampala alone rely on either charcoal or firewood or both. The production and use of biofuels is meant to help reduce this number.

It is further envisaged that biofuels production will reduce Uganda's dependence on petroleum products and also save Uganda valuable foreign exchange. Uganda continues to spend colossal sums on importation of petroleum products. Figures from Bank of Uganda show that in 2016 Uganda spent $3.7 billion on the importation of fuel.Other than sugarcane, a number of other agro fuel crops are being encouraged to ramp up production. These include maize, candlenut tree, Croton and Jatropha.

But activists warn that the law will enhance massive production of biofuels which could replace food crops and bring about hunger crisis in the country.Samuel Okulony the programme officer of renewable energy at Africa Institute for Energy Governance, a local Ngo, says that curbing fuel shortages is good for Uganda’s development, but biofuels projects should not compete for land with food crops. He warns that this could threaten food security.

“There is need for an all-inclusive dialogue involving all stakeholders and then a well thought-out law is passed to guide the development of the nascent industry” he says. “Otherwise, emphasizing biofuels alone does not create a win-win situation for our farmers.

To be sure, in neighboring Kenya, growing cultivation of a popular bio crop, Croton is already sending shockwaves in the hunger prone nation. Although the plant has been hailed as a game changer in the biofuel industry, some experts say it’s over cultivation poses one grave danger to food production, in a country that hosts more hungry people than any other in East Africa.

dianakarakire@gmail.com

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The East African country of Uganda is rapidly developing its biofuels industry

Ugandan local sugar companies are racing against time to diversify into commercial ethanol production as they look to tap into the country’s increasingly lucrative energy sector. Leading the pack is the country’s largest producer, Madhavani Group’s Kakira Sugar Works, which is set to start ethanol production at its $35 million (€31.6m) distillery plant in September this year.

Once complete, the sugar firm hopes to produce 32 million litres of ethanol fuel using the 74,000 tonnes of molasses that it produces annually. Last year, Kakira contracted India-based Praj Pune Industries to build the distillery. According to Madhavani Group publicist Angella Kintu, the initiative will help the firm save 500,000 Ugandan shillings per tonne that it loses in the sale of raw black treacle to local dealers.

“These molasses are usually sold off to local gin producers and farmers at low prices,” says Kintu. “With our own distillery, we have a double-edged sword.”

The plant is designed to switch between the production of fuel-grade bio-ethanol and premium-grade extra neutral alcohol.

“It is expected to be complete by September this year. This will pave way for ethanol either being blended with petrol to run vehicles or being sold as neutral alcohol for making other products including sanitisers,” Kintu continues.

The timing appears to be right, with Uganda preparing to build a $4 billion oil refinery along its western border with Congo. The refinery will start with 30,000 barrels-a-day of refined fuel products. With refined petroleum consumption in the East African nation growing at 15% annually, the potential is enormous. The petroleum refinery can then blend petrol with ethanol, the Energy and Minerals Ministry says.

Sugar Corp. of Uganda (SCOUL) the third largest sugar producer in the country. It is also installing a state-of-the-art distillery with a production capacity of 35,000 litres per day of premium grade extra neutral alcohol. Currently producing 60,000 million tonnes of sugar annually, the company has embarked upon expanding its distillery and alcohol production plant to an annual 9 million litres by 2017 with products such as ethanol and extra neutral alcohol.

Governmental support

In the energy-hungry East African region, Uganda is the only surplus sugar producer and the chances of tapping into the biofuel sector will give the producers an added edge. The government of Uganda has expressed that biofuels production can solve the energy needs of the country, reduce dependence on imported fossil fuels, and encourage economic growth.

According to James Baanabe, Uganda’s commissioner of the Efficiency and Conservation Department at the Ministry of Energy and Mineral Development, biofuels provide cleaner and environmentally-friendly fuel for industrial purposes, cooking, transport, and power generation.

“Biofuels, especially ethanol, are good for powering vehicles. They do not produce toxic gasses when used,” he says.

The Ugandan government hopes to fast track biofuels development to secure a stable energy supply and diversify the energy sector for long-term economic development by 2040. It has demonstrated commitment to biofuels production by putting in place legislation, the Biofuels Bill 2015, which is still awaiting parliamentary approval and enactment. The bill will create incentives like tax rebates, which will encourage investors to develop biofuels. It is also meant to help project developers acquire a secure market in the sector.

The bill complements the Renewable Energy Policy for Uganda 2007, which provides for compulsory blending of biofuels with fossil fuels in regulated proportions to 20% of the former component. Kintu says that the bill could reduce the country’s cost of importing petroleum products and set terms of producing ethanol for domestic use and for export. She adds that the legislation will enable developers to access long-term finance for project development in the biofuels industry.

The benefits of biofuels

Over the past decade, Madhvani has invested $75 million in cane-crushing facilities and in a power plant using bagasse, a cane fibre. At the moment, the sugar firm at the moment uses 20MW of the 52MW it produces, selling the remainder to the national grid. With the discovery of abundant fossil fuel reserves, coupled with the promotion of investments and research in biofuels, Uganda is on its way to fuel self-reliance.

Uganda is set to begin pumping its first commercial oil in 2020 after substantial reserves were discovered near the country’s border with the Democratic Republic of Congo in 2006. Only 40% of the country’s potential has been explored so far and there is hope of further finds. A consortium of companies, led by UK-based Tullow Oil, Total, and China National Offshore Oil Corp. hope to produce up to 60,000 barrels per day, which could increase to 120,000. These oil companies will be obliged by law to blend fossil oil with bioethanol, up to the E20 standard. Banaabe says that blending petroleum products with biofuels will enhance the life of the Uganda’s oil fields through partial substitution. This also provides lucrative market for bioethanol.

Uganda meets more than 93% of its energy demand with biomass in the form of charcoal and firewood, 6% with fossil fuel combustion, and only 1% with electricity from hydropower, according to Ministry of Energy statistics. Only about 15% of the population has access to electricity, and in rural areas percentage sinks as low as 7%. This has resulted in the depletion of the country’s forests and woodlands. The loss of these fragile ecosystems not only has serious implications on Uganda’s biodiversity, but also compromises the nation’s ability to cope with climate change.

According to the Ministry of Energy, it is hoped that bioenergy will increase the renewable energy mix from 4% to 61% of total energy consumption by 2017. Uganda also has a national strategy for bioenergy development, including growing biofuel crops to contribute to the country’s energy balance. Investors have already shown interest in developing biofuel projects in Uganda. Last year an ethanol extraction factory was established in Lira District in northern Uganda. The $1.8 million Kamtech Logistics plant is located at Barlwala in Adekokwok sub-county. Farmers are no longer worried about a market for their cassava, as they sell it to the plant for ethanol production.

Opposing opinions

A few companies have also already established massive biodiesel feedstock farms in different parts of the country. Among these companies are Nexus Biodiesel, a US-based biodiesel company, and African Power Initiative (API). Nexus has planted more than 400 hectares of jatropha in Isimba, Masindi, which is three hours north of Kampala. API has planted about 4,000 acres of castor oil and jatropha in Namalu, Karamoja region. The companies are already producing diesel.

Kakira's entry into biofuels comes at a time when the price of crude oil is averaging at $50 a barrel, massively down from $100 barely a year ago, which is hurting the global biofuels industry. However, even as crude prices have been volatile, the biofuel industry remains lucrative as countries seek cleaner energy in the face of global warming. Blending also reduces over-reliance on the volatile global crude markets.

Biofuels production brings many benefits for Uganda by providing access to clean energy services. Production of ethanol from sugarcane and maize grain is likely to increase grain and cane prices, which in turn will benefit small scale farmers that work as growers for larger companies. This will also increase maize and cane grain output.

But environmentalists and food rights activists worry that although curbing modern energy shortages is crucial for Uganda’s development, the biofuel industry may have negative consequences especially on food security. They thus continue to oppose to the development of biofuels, which they say creates a shift from growing crops for food to growing crops for profits. Another argument is that biofuel crops demand large chunks of land and thus compete with food crops further. 

“Biofuel production is not sustainable as it does not lead to poverty alleviation or an improvement in livelihoods,” says Kabongo Isaac, the director at Ecological Christian Foundation, a local Ugandan non-governmental organisation. Farmers involved in growing feedstocks for biodiesel projects are already facing food shortages because they have neglected to grow food crops to sustain their families by committing all their farm lands and labour to growing jatropha and other feed-stocks as their mainstay, Isaac argues.

“The proceeds they earn from the sale of biofuel feedstocks are spent on buying food and other necessities from the markets. It will most likely worsen food shortages,” he adds.

dianakarakire@gmail.com

Uganda Unveils its first Solar powered Bus

In the sprawling yard of Uganda’s upscale Serena hotel, Paul Isaac Musasizi looks over a pale white solar-powered electric bus, the first of its kind in Africa, an early dividend from a decades-long research work.

 “It has taken a lot of hard work and dedication, but we are up for the challenge” the 36-year technology engineer says, with a broad smile “We are along the equator and we want to use the abundant sunshine throughout the year to our advantage”   

A research trip to Massachusetts  university eight years ago convinced Mr.Musasizi  a former Makerere University engineering lecturer that he could build cars at home in Uganda. Now his company, Kiira Motor Corporation KMC, is building a car plant he says will be up and running to push out electric cars off its assembly line by 2018.

After successful designing of a hybrid electric sedan last year, the Kiira EV smack,Kiira motors corp recently launched a solar poweredbus, the beginning of Musasizis’ bigger ambition to kick start Uganda's solar-powered automobile industry.

The 35 seater bus also locally known as “Kayoola” can travel up to 50 Kilometers straight powered by two batteries. The primary battery supplies electrical energy to the propulsion motor while the secondary battery bank is available for charging using the onboard solar charging system or the plug-in charger system. The solar panels are mounted on the roof, taking full advantage of Uganda’s sun.

Musasizi says each battery takes an hour to charge. The bus is suitable for urban areas use because of the restrictions on how far it can travel. The savings expected per 100km using the Kayoola Solar Bus, compared to the conventional diesel powered buses is expected to be 63%, providing a lower cost mass transportation solution as well as assuring profitability when in service.

Most of the materials used to produce the bus were locally sourced, except for the synthetic leather, tyres, the steering wheel and software that were imported. The chassis is made of steel, its aisle of sheet metal and it also has pipe elements and square sections. Its seats are also made of steel and covered in cream leather.

Musasizi said the project which started in 2011, was initiated to explore the possibilities of using solar technology to support mass transportation that Ugandans commonly use. “We wanted to investigate those opportunities, particularly because Uganda being one of the 13 countries positioned along the Equator, gives us about eight hours of significant solar energy that can be harvested”.

It is against this background that the Kayoola solar bus project was executed. If mass produced, each bus would cost up to $58,000, which Mr Musasizi says is  a very competitive price.

Kiira Motors grew out of a project at Uganda's Makerere University, which is now a shareholder in the company.The project has  benefitted from government funding through the presidential initiative for science and technology innovations .This is part of President Yoweri Museveni’s  industrial development intervention plan to transform Uganda into a middle-income economy by 2040 through providing a platform with high intellectual convergence of disciplines aimed at establishing vehicle manufacturing capabilities in Uganda .Kiira motors was named after the Kira Nile river dam that supplies electricity to the company factory and many consumers in the country.

The ultimate goal is to establish Kiira Motors Corporation as the first Automotive Original Equipment Manufacturer in East and Central Africa and lure local customers away from pricier ­imports by producing 50 buses a year, eventually supplying pick-up trucks, sedans, light and medium duty trucks.

“We are here to celebrate the Ugandan innovator with a mission to industrialize our nation” said President Yoweri Museveni during the launch earlier last month/16^th Feb/. “Uganda is now ready to industrialize. The energy is ready; the infrastructure is ready; the economy is ready; and most important of all, our people are ready. This model bus is a symbol of our capabilities; this is the best way to use our clean energy sources”

He further stated that the project will create over 12,000 Jobs in the capital expenditure phase and over 2,000 in the operational expenditure phase.

Musasizi says the first 305 cars from KMC are expected to be rolled off  its plant, located in Njeru, around 70 kilometers out of Kampala by 2018. The plant’s capacity can rise to 50,000 units by 2039. Musasizi looks forward to attracting investors interested in green energy for funding and future staff training.

The company hopes to challenge global players with a strong presence on the continent including Nissan Motor Co. and Toyota Motor Corp.

Although the kayoola bus production and development by local engineers and suppliers is a significant milestone for Uganda's budding heavy manufacturing industry, the project still faces a number of major risks to its commercial success.

The limited availability and reliability of electricity due to the country’s poor energy supply in addition to limited availability of skilled labour will keep manufacturing costs substantially high for Kiira Motors Corp. Also, the production volumes will be unlikely to compete with other producers especially established Kenyan firms. Kenya remains the region’s largest automaker.

 The Ugandan new vehicle market also remains far too small to absorb the company's planned output, about 4,000 new cars are sold a year .The country also imports about 15,000 used vehicles annually. This raises the costs for the producer to engage in costly marketing and export operations elsewhere in the region.

 dianakarakire@gmail.com

Africa's renewable energy entrepreneurs need incentives

Mega hydro power plants tend to grab headlines when it comes to renewable energy in Africa. However, there are many less celebrated small scale renewable energy  startups on the continent. These have the potential to fuel businesses, reduce the carbon footprint, enhance environmental conservation, create employment and income. Uganda’s newvision newspaper recently carried a story about a woman making millions through energy saving stoves. The stoves optimally utilise special stones (other than charcoal) which in turn conserve the environment.

The stoves, apart from being environment friendly, solve the problem of wood shortage. They reduce deforestation and wood consumption by 95 per cent and cooking time by 75 per cent. They protect the eco-system and reduce emission of harmful gases. The stoves can also be used to charge phones and light bulbs. The renewable energy sector has a growing market that remains untapped. Supporting these projects will help meet multiple objectives as stipulated in Uganda’s renewable energy policy 2007. The objectives include: Increasing access to clean energy, improving security of energy supply, contributing to inclusive social and economic development, protecting the environment and creation of employment in the emerging green economy- In essence, setting Uganda on a low carbon pathway.

The last few years have seen a growth in small scale renewable energy projects. These have mainly been triggered by increased awareness of climate change and environmental issues. However, the key problem remains in financing such projects. These projects are often perceived as too risky for investors and too costly for the economy. This and other challenges such as in-house technical expertise, project coordination, and up-front funding at the planning stage, have hindered their growth.Small scale renewable projects respond to the urgent need to cut Carbon emissions, boost the economy, diversify the energy supply, increase resilience and security of supply.Therefore government of Uganda should create incentives to encourage roll out of these projects like providing finance at beneficial rather than off-market interest rates, flexible grants or ‘soft’ loans, project preparation support to those that demonstrate potential and profitability and help those with promising project concepts develop their ideas into bankable proposals.

dianakarakire@gmail.com

Addressing energy needs in Africa – solar power

Three years ago, Rehema Kanama nearly left from her off grid rural home in western Uganda for a better life in the city. But the 35-year old single mother quickly changed her mind after signing a lease agreement with Solar Now, for a solar connection.Today she no longer has to buy kerosene to light her home, a major relief for her three children who have in the past struggled for light to do their homework.”The children are very happy” she says. “I never imagined I would be able to live in house fully connected to electricity,”

Supported by income from her five-acre farm and a herd of around a dozen cows, Ms. Kanama is able to pay a monthly installment of $30 to Solar Now. After 18 months, she will fully own the system installed on her property.In recent years, East Africa has been emerging as a lucrative market for alternative sources of power such as solar energy. This has been driven by the limited electricity infrastructure and the more of than not, constant sunshine.

The International Energy Agency estimates that 580 million people in sub-Saharan Africa lack proper access to electricity, with the electrification rate as low as 14.2% in rural areas.In Uganda, figures from the Ministry of Energy and Mineral Development indicate that electricity access is at 16% nationwide and only 7% in rural areas. This indicates that less than half of Uganda’s population is on the grid, and many have to buy and burn kerosene for power.

This situation makes the region a big market for investments in alternative sources of power especially clean energy by both regional and international firms.Solar Now, a Kampala based firm, has over the past five years, connected more than 10,000 rural households with electricity. The company offers a range of high-quality solar home systems and electrical appliances that are designed to fit the needs of low income rural households and small entrepreneurs

“We’re not just a solar product company; we see ourselves as asset finance and distribution Company with a focus on renewable energy, and bringing together affordability and distribution” said Willem Nolens, CEO of Solar Now .With over 45 branches country wide, Solar Now plans to expand to other East African countries. So far it has sold 6,100 solar systems. The average system costs US$800, but its most popular product costs US$500.

The Nairobi-based firm M-Kopa Solar is another company venturing into this emerging market. So far, the company has connected more than 250,000 homes in Tanzania, Uganda and Kenya, with the hope of reaching one million customers by 2018.Jesse Moore, M-Kopa Solar’s founder and managing director estimates the market for solar energy in East Africa at 20 million people.

 While buying a solar system saves users money spent on kerosene, the recurring argument is usually that solar energy systems are expensive for many rural households that struggle to save up enough money for this one off purchase. However, these companies have found innovative ways to make these solar systems affordable to the rural low income earners. 

Solar Now is selling solar systems to rural households and businesses in Uganda with an 18-month credit facility in order to make them affordable.M-Kopa allows customers to put down a $35 deposit through M-Pesa a mobile payments system that allows customers to transfer money through mobile phones. Through M-Pesa, the user pays the company the equivalent of 43 US cents over 365 days until they have transferred the full $180 to own the equipment outright.

 In Rwanda, Gigawatt Global Company has succeeded in financing, constructing and interconnecting a $23.7 million solar energy field, the first of its kind in the region. The field is now supplying 6 per cent of Rwanda’s power needs.Recently, the United Kingdom’s Department for International Development launched the Energy Africa campaign that aims at expanding the use of solar power across Africa as part of efforts to reduce millions of people without access to electricity.Speaking at the launch of the campaign, former UN secretary general Kofi Annan said: “This campaign addresses one of the great injustices of the 21st century ‒ an injustice that robs millions of our fellow citizens of the dignity, opportunity and freedom that comes with access to modern energy.”

 dianakarakire@gmail.com

Renewable Energy Developers Power Energy –Hungry Uganda

Uganda has commissioned a 10 megawatt solar power plant, as the East African nation continues efforts to boost its electricity generation capacity and exploit its vast renewable energy potential, officials said Monday.Constructed by renewable energy developers Access Energy Group from Dubai and France’s Eren RE, the $19 million plant is the largest in East Africa, providing clean electricity to 40,000 residents in eastern Uganda, according to David Corchia, Eren’s chief executive.

It’s Uganda’s first grid-connected solar plant as the country continues efforts to raise power generation capacity to 1,500 MW by 2020, from the current 850 MW.The power plant has the potential to increase its net output capacity by a further 20mw of solar energy.

“We are ready to double generation capacity as soon as the national grid is ready,” Mr. Corchia said. “Renewable projects are mostly suited for countries like Uganda, where most people are off the grid.The Dutch development bank, FMO and the London-based Emerging Africa Infrastructure Fund provided the debt facility for the project, which includes panels fixed across a 34-acre field. 

 “We are really proud to have the project here in Soroti, some of us had even lost hope in expanding our businesses” says 30-year-old Daniel Owundo, who owns a restaurant in the outskirts of Soroti, plagued by soaring costs of using a diesel-powered generator.

According to Owundo, for years, government has promised but not delivered electricity to his small township of Ongori, located some 10 kilometers from the main town. Since the connection of solar three weeks ago, Mr.Owundu has retired his generator and is looking forward to introducing a fast food section on his restaurant that has previously concentrated on only local dishes.

“More people are visiting this area now, business is picking up,” Mr.Owundu says. From phone charging to powering small businesses, the plant is seen as crucial to the development of rural Uganda, according to Reda El Chaar, the executive chairman for Acess Energy Group.Small processing plants dealing in raw commodities such as coffee, tea and cotton consume the bulk of Uganda’s generated power from hydropower dams along the Nile River.

 Government of Uganda has been keen to develop alternative energy sources to diversify away from the hydro power plants, currently beset by unstable water levels blamed on dry spells and changing weather patterns.But with the sun shining every day in the country, analysts say solar is the way to go.

“Its an un tapped potential, while there is uncertainty about fuel prices, we are assured of daily sunshine” said David Mutambi, the head of the Electricity Regulatory Authority ERA.Also demand for electricity has been growing spurred by the increasing population. Statistics from ERA indicate that peak demand for power is growing by 15% every year. All this is crucial in an economy that is expanding fast and aims to give half its 34 million people access to electricity by 2017.

Government has long regarded solar energy as a viable option for  renewable energy generation .According to the Renewable energy policy, the country has a solar electricity potential of about 200mw, 1650 mw from biomass, 800 mw from peat ,2200 mw from hydropower stations and 400mw from geothermal energy .

Uganda recently signed a 90 million-euro ($95.55 million) loan deal with German development bank kfw and French government finance agency AFD to build a 45 megawatt (mw) power plant. According to the Ministry of energy, 85% of the population does not have access to electricity and that number is rising, there is a desperate need for more energy.

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