Transcript ENERGY MANAGEMENT IN HOTELS - Energy for Development (EfD

INTERGRATION OF ENERGY ACCESS IN
RURAL DEVELOPMENT IN UGANDA
Benon Bena and James Baanabe
Ministry of Energy and Mineral Development
Uganda
EU Energy Initiative Workshop and Policy Dialogue
Hotel VIP, Maputo, Mozambique
12-15 April 2005
CONTENT OF THE PRESENTATION
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Background
Policies on Energy and Poverty
Energy for Rural Transformation Programme
Selected Case Studies
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Igloo fish processing plant situated near Majanji Landing Site on
lake Victoria in Busia District.
Njeru – Kayunga – Bbale Rural Electrification Project
Fish processing Plant at Bukakata
Ssembabule Rural Electrification Scheme
Kaweri Coffee Plantation Limited
Solar Electrified Areas
Conclusion
BACKGROUND
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Uganda has a population of 26 million, 87% rural, in
scattered nature.
Uganda has consistently registered high economic
performance over the last decade
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Growth rate averaging 6%
Annual increase in per capita income of 3.7%
Reduction in people living below poverty line: 56% in 1992
to 38% in 2004
BUT
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Poverty remains wide spread in rural areas
Per capita income $320
Inadequate infrastructure services
Lack of integration with markets
Energy Situation In Uganda
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Biomass represents 93% of the
national energy balance
lowest per capita consumption of
commercial energy in Africa
energy demand growing
oil products imported (100%)
renewable energies are abundant
but not largely disseminated
electricity load shedding and low
electrification rate 9% constrain
the economic and social
development
6% 1%
93%
Biomass
Electricity
Oil Products
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Electricity Access
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Access at national level only 9%
Rural access to national grid only 3%
Self electrification (gen-sets, PV, car
batteries) about 1%
POLICIES ON ENERGY AND
POVERTY
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Energy Policy
Poverty Eradication Action Plan (PEAP)
Power Sector Strategic Plan 1997, 1999
Rural Electrification Strategy and Plan
2001
The Energy Policy for Uganda
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GOAL:
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To meet the energy needs of Uganda’s population for social
and economic development in an environmentally
sustainable manner
OBJECTIVES:
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To establish the availability, potential and demand of the
various energy resources in the country
To increase access to modern affordable and reliable energy
services as a contribution to poverty eradication (Pillar 1, 2
,5 of the PEAP)
To improve energy governance and administration
To stimulate economic development
To manage energy-related environmental impacts
Poverty Eradication Action
Plan
Five Pillars in the PEAP
 Economic management
 Production, competitiveness and incomes
 Security, conflict-resolution and disastermanagement
 Governance
 Human Development
Power Sector Strategic Plan
(1997,1999)
It spelt-out a new policy direction in the
power sector and emphasized:
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Need to make power sector financially
viable.
Involvement private sector in electricity.
Increase of access to electricity.
Electricity Act, 1999
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Broke the monopoly of power utility-UEB
Created a Regulator (ERA).
made RE an obligation
Establishment of Rural Electrification Fund
(REF)
Minister had to develop strategy & plan
Special incentives for investments in RE
The Rural Electrification Strategy and
Plan
It spelt out the mechanism of Rural
Electrification and the targets:
 Institutional framework for the Rural
Electrification Fund.
 Increase of rural electrification from 1% to
10% by 2012.
 Combination of delivery modes : grid
extension, off-grid systems, solar PVs and
renewable energy projects.
The Rural Electrification Fund
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Channel for extending “smart subsidies”.
Main sources of funding
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Government budget
5% levy from transmission bulk purchases from generation
companies
Grants from bilateral and multilateral donors
Criteria for access based on:
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Financial and economic soundness of project
Sound environmental impact statement
Positive social return
Equitable electricity distribution
ENERGY FOR RURAL TRANSFORMATION
PROGRAMME (ERT)
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It is a ten year programme developed by
GOU with support from World Bank/GEF.
It is private sector led.
Projects benefit from subsidies to buy down
capital costs.
The overall goal is to increase electricity
access in rural areas from 1% to 10% by
2012.
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It addresses several delivery mechanisms:
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Grid extension where feasible;
Decentralized mini grids;
Solar PVs; and
Development of other renewable energy
resources.
OPERATIONAL FRAMEWORK OF ERT
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ERT has strong linkage with key production and
human resource sectors: Agriculture, Health,
Telecommunication, Water and Education.
Target areas are: District Headquarters, Trading
Centers, Agro Processing areas, Schools, Health
Centers and Rural Water supply units.
Service delivery mechanism and Project Developers:
Private Sector, NGO’s, Local Communities and local
governments.
Lessons Learnt on ERT
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Private sector is reluctant to invest in RE projects.
It perceive it as a high risk business- the thinking
is have public leading is required
Time it takes for private sector from project
initiation to implementation is long
Need to have subsides such as GEF financing to
buy down capital cost which lowers the tariff.
Unlike GEF, PCF does not considerably lower the
tariff.
Programmes being developed should address the
problem of affordability and the high upfront costs.
Lessons Learnt on ERT Cont’d
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Linkages with other social and economic sectors in
developing RETs is a big stimuli of development
Need to employ a mix of service delivery methods:
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Grid extension where feasible;
Decentralized mini grids;
Solar PVs; and
Development of other renewable energy resources.
SELECTED CASE STUDIES OF ENERGY
INTERGRATION IN RURAL DEV
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Igloo fish processing plant in Majanji - Busia
District.
SME’s on Njeru – Kayunga – Bbale Rural
Electrification Scheme
Fish Processing Plant at Bukakata (Using a
diesel generator)
Ssembabule Rural Electrification Scheme
Kaweri Coffee Plantation Limited in
Mubende District
FISH PROCESSING PLANT
IGLOO FOOD INDUSTRIES
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This is a fish factory
situated near Majanji
Landing Site on lake Victoria
in Busia District.
Provision of electricity to the
site involved construction of
a 10 km 33 kV line (three
phase)
Production Capacity:
40 tonnes of fish/day
Number of people
employed: 400
Majanji landing Site
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Fresh fish for the
factory is received
at this landing
site
Beneficiaries
include about 74
fishermen
Ice Plant at Igloo Food Industries
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The company uses
electricity to produce ice,
to chill the fish and for
refrigeration of the cold
rooms.
Ice Production:
60 tonnes/day.
The ice produced is used
by fishermen to preserve
the fish immediately it is
caught.
Loading Fish for Export
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Fish exports
brings in foreign
currency into the
economy.
SME’S ON NJERU – KAYUNGA - BBALE –
RURAL ELECTRIFICATION PROJECT
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The project completed in July 2000 included
construction of a 92 km 33 kV line from Njeru to Bbale
and provision of distribution transformers
Major load centers on the project include,
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A stone quarry belonging to Nile Mining Company.
13 maize mills
Five coffee factories
Two milk cooling plants
Three secondary schools and six primary schools
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A health unit
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Coffee Processing Unit
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A small coffee
processing unit
connected to the
grid.
There are four other
coffee mills
connected to the
grid.
Maize Mill Kayunga –
Bugerere Road
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There are 13 such
maize mills on the
line
Bugerere Balunzi Diary
Cooling Plant
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It belongs to a Cooperative
society located in Baale.
Capacity is 5000 litres a day.
Serves about 120 farmers.
Before the cooling plant was
installed, the milk was taken
to Kayunga town 44KM
away.
This greatly improved the
milk quality reducing loses.
Bugerere modern farm cooling
plant
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Situated between
Kayunga-Bbale.
It serves 20 farmers
It handles 1800
litres of milk per day
Bbale Health Centre
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Main energy source used
before electrification was
kerosene and charcoal
The hospital is connected to
the grid now
Electricity is used for:
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Lighting
Sterilisation of hospital
equipment & medical supplies
Refrigeration of vaccines
Powering equipment for limited
operation
Kanjuki S.S.S
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This is one of the secondary
schools connected to the
grid.
Electricity is used for:
lighting the class rooms
which has made reading at
night possible.
Lighting in dometries which has improved quality
of life of the students
School in take has increased
to 800 students half of them
reside at the school.
FISH PROCESSING PLANT
AT BUKAKATA, MASAKA
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It belongs to Fresh water
fish exporters Ltd
The factory currently uses a
265 kV diesel generator.
It employs 250 people
Factory capacity is 50
tonnes/day, however due to
limited power, current
production is 10 tonnes/day.
Bukakata landing site
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The site is on Lake
Victoria in Masaka
District
Fresh fish is
harvested here
It serves 20
fishermen.
Ice making plant-Bukakata Cont’d
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The ice produced is
used by fishermen to
preserve the fish
immediately it is
caught
Company Fuel Service StationBukakata Cont’d
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Fuel consumption by
the plant is about
600 litres per day.
Proposed Scheme for Extending
Grid Power to Bukakata
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Proposed scheme will involve
construction of a 35 km 33 kV line from
Masaka to Bukakata
Project cost has been estimated at Ug.
Shs 1.5 billion.
From Bukakata the line would be
extended to Kalangala Island (If funds
are available)
RURAL ELECTRIFICATION
SCHEME IN SEMBABULE
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This involved
construction of a 17 km
power line from Matete
to Ssembabule town
and provision of
distribution
transformers.
Electricity is used for:
communication, car
battery charging and in
small enterprises in the
town
Coffee Processing Plant in
Ssemabule
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Processes 150 bags
per day
It serves about 100
farmers
Maize mill in Ssemabule
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One maize mill is in
operation in the
town.
Previously the maize
was grinded at a mill
10km away from
Ssemabule
KAWERI COFFEE
PLANTATION LIMITED
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Government is providing 23
km of 33 kV line to the
plantation.
18 km has so far been
constructed and
commissioned
Total project cost is US $
10M.
When completed, the
company will employ about
6000 people.
Wet Coffee Processing Plant –
Kaweri Plantations Ltd
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The wet processing
plant has a capacity
of 500 kg/hour. This
is for carrying out
trials.
100 kVA Transformer
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A 100 kVA transformer
serving the wet
processing plant, the
residential quarters
3 transformers have been
installed and powered.
The remaining 2
transformers and 5 km of
the line will be provided in
the near future.
Coffee Plantation
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Peak production
capacity of the
plantations is
expected to be 4000
tonnes of coffee per
year.
CONCLUSION
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Good policy frame addressing energy is key in
increasing energy access.
Rural energy used in enterprises has added value to
agricultural products, thus improving the farmers’
incomes.
Rural enterprises resulting from energy access have
provided employment, hence reducing poverty levels.
People’s lives have improved through provision of
energy for social services (health, education and
water)
Private –public partnership with the public leading
Thank You for Your Attention !!!