OPPORTUNITIES AND CHALLENGES OF POLICY AND REGULATORY REFORMS IN THE POWER SECTOR IN UGANDA

1

• OPPORTUNITIES AND CHALLENGES OF POLICY AND
  REGULATORY REFORMS IN THE POWER SECTOR IN UGANDA
• (Cogeneration Development and the Private
  Forestry Sector Participation in the Electricity
  Industry)
• A Presentation at Sotik Tea Company Training
  Course on Renewable Energy and Biomass
  Cogeneration Technologies on 10 11th January
  2009, Sotik Tea Factory, Kenya
• by
• Hudson J. Andrua

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POWER SECTOR REFORMS

• Renewable Energy Policy
• Liberalization private sector participation
• Independent regulatory body

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ENERGY SECTOR

• Hydro-electricity 380MW installed capacity
  currently under utilized
• Inadequate electricity generation for the load
• Low rural electrification and grid densification
• Major use of electricity for lighting
• Renewable energy resources for power generation
• Mini-hydropower generation (15.6MW

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ENERGY SECTOR (Contd)

• Thermal plants
• Power supply shortfalls
• High electricity tariffs
• Untapped renewable energy resources potentials
  (biomass, solar, wind, geothermal etc)

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ENERGY CONSUMPTION
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FOREST SECTOR

• National goals and objectives
• Achieving sustainable forest resource management
• Raising the incomes and quality of life
• Increasing economic productivity and employment

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FOREST SECTOR REFORMS

• The new Forestry Policy (2001)
• The National Forest Plan (2002)
• The National Forestry and Tree Planting Act
  (2003)
• New institutional roles and responsibility
• Private sector participation
• Grass root stakeholders involvement

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FORESTRY SECTOR REFORM (Contd)

• New Institutional Roles and responsibilities
• Forestry Sector Support Department (FSSD)
• Policy direction, strategic planning,
• National Forestry Authority (NFA)
• CFR, partnerships with stakeholders
• District Forestry Services (Local Governments)
• LFRs, forests on private land, extension services
• NGOs CBOs
• Advocacy, lobbying, service provision
• Private Sector
• Investment
• Local Communities
• Forestry on farm, collaborative forest management,

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LAND COVER /USE
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OWNERSHIP OF FORESTS
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WOOD DEMAND
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WOOD CONSUMPTION
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TRENDS (Demand, Yield, Deforestation Wood
Balance)
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OPPORTUNITIES IN THE FOREST SECTOR

• Availability/security of land and trees
• The permanent forest estate
• Wood industries
• The District Forestry Services
• Biodiversity and environmental services
• Urban forestry
• Forestry in rural livelihoods
• Contribution of forestry to wider govt priority
  plans

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POTENTIAL COGEN INVESTMENTS

• Modern bio-energy technologies
• Biogas zero-waste technology (about 500 biogas
  plants exist and over 2,500 zero-grazing farm
  households commercial dairy farms piggeries
  to support larger biogas plants for thermal and
  electricity needs
• Bio-fuels (production of bio-diesel to meet rural
  electrification targets (indirect power supply)
  to reduce over-dependency on imported diesel
• Gasification technology (conversion of biomass
  into modern sustainable energy and other
  products) (10kw)

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OPPORTUNITIES

• Increased private sector and community
  participation
• Investment opportunities for private sector
• Energy plantation development

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OPPORTUNITIES

• Policy environment favourable for private sector
  and community participation
• Untapped cogen potentials and current national
  energy development priorities (energy for rural
  transformation(ERT)
• Financial incentives (Grants, Tree Fund)
• Land availability /security for energy plantation
  development
• Unfulfilled demand for biomass

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CHALLENGES

• Finance
• Rate of national electrification (demand)
• Private sector led and demand driven paradigm
• Institutional development and co-ordination
• Regulatory framework
• Environment Issues
• Governance issues
• Human capacity