Uganda: is a landlocked nation in eastern-Africa, that straddles the equator, west of Kenya, south of Sudan, with Rwanda and Tanzania to the south
Natural Resources: copper, cobalt, hydropower, limestone, salt, arable land.
Uganda is an energy poor nation with limited access to electricity and a heavy reliance of wood for the needs of most Ugandans. This is connected to economic poverty and continuing deforestation. A drop in the water level of Lake Victoria in 2005/6 led to a major reduction in the nation's electricity supply and an energy crisis. Uganda has rapidly expanded and diversified its energy supplies away from its near exclusive reliance of two hydroelectric facilities, but still has a supply shortfall. New energy hydroelectric and fossil fuel electric generating facilities are projected to come online over the next few years. Oil has recently been discovered in the western part of the country which will begin producing in 2009/10. These developments should help Uganda sustain the brisk economic growth experienced during much of the past two decades and broaden the access to modern energy supplies. However, growing Uganda's energy supplies include significant financial and environmental challenges.
Charcoal and Fuel Wood
Lying beyond the reach of electricity, most Ugandans rely on woodfuel (fire wood and charcoal) as their primary source of energy for heating, cooking and lighting. In the 1980s, local officials estimated that charcoal and fuel wood met more than 95 percent of Uganda's total energy requirements; in 2002 it was estimated to still be 90% Consumption of wood has risen apace with the country's population
The Ugandan census of 2002 reported that 81.8% of Uganda households use firewood for cooking and another 15.2% charcoal. Combined, this at totals to 97% of Ugandans using wood or charcoal
This single issue lies behind much of the deforestation occurring in the country. It is also a major factor in terms of the productivity of Ugandan household as deforestation leads to increases in the distance and time required to gather woodfuel. The Uganda government estimates that from 1992 to 2000, the average distance traveled to gather fuelwood increased from 0.06 km to 0.73 km. Fuel is a significant part of the rural economy in Uganda.
Petroleum
Petroleum use in Uganda. Source: US Energy Information Administration
Uganda imports all its petroleum products and there is, as yet, no production in the country; although some local production is expected to begin soon. Imports come primarily through Kenya (85%) and Tanzania (15%) via trucks.The main oil route is from the port of Mombasa via pipe to Eldoret, Kenya,Eldoret in western Kenya and then by truck across the border into Uganda.
In 1999, Kenya and Uganda announced plans to extend the pipeline from Eldoret, Kenya,Eldoret to Kampala. The pipeline, with a capacity of 16,500 barrels a day, would supply petroleum directly to Uganda and indirectly (transported from the pipeline terminus by road, rail and barge) to Rwanda, Burundi, northwestern Tanzania and eastern portions of the Democratic Republic of the Congo. Construction of the 200-mile (320-kilometer), has been delayed repeatedly but is projected to be completed in 2010/11.
In 2008 it was estimated that Uganda consumed about 13,000 barrels of oil a day and spent $400 million annually on petroleum imports. Consumption, largely based in transportation, rose rapidly in the 1990s; rising by an average of 14% per year from 1993 to 1996, and at about 6% per year since 1997. The rapid rise in consumption is reflected in the growing number of vehicles in the country:
The use of diesel in thermal power plants for electricity generation has also be a significant factor since 2006.
Along with other parts of the Ugandan economy, the petroleum industry was was privatized and liberalized in the 1990s which resulted in a sharp increase in prices and investment.
Several oil companies are prospecting in or near Uganda’s Western Rift Valley where surface oil seeps have occurred. In June 2006 discoveries at three fields were announced which have combined reserves of 100-300 millions barrels. This is a significant find, but modest compared to the known reserves of Nigeria (35 billion barrels) and Angola (5 billion barrels). 30 million barrels are deemed ready for extraction beginning in 2009/10, which would result in an estimated 12,000+ barrels a day. While this is comparable to Uganda's national consumption, it would not provide all the oil-based products that Uganda needs. thus, the country is project to export some oil products while continuing to import others. The building of a refinery to provide some national capacity to process the extracted oil is also under way.
Solar
Uganda's 2002 governmental Energy Policy notes the country's favorable situation regarding solar energy:
Uganda is endowed with plenty of sunshine giving solar radiation of about 4-5 kWh/m2/day. This level of insolation is quite favourable for all solar technology applications. Solar energy applications in Uganda include solar photovoltaic (PV), water heating, cooling and crop drying.
PV systems are generally required for applications where modest power needs exist mainly in areas that are not served by the grid. They provide power for lighting, telecommunications, vaccine and blood refrigeration, and for playing radio and television in such areas. This technology has also proven to be very successful in providing energy services to very inaccessible areas such as on islands and mountainous areas where the national grid cannot be expected to extend its services in the foreseeable future.
Government is currently implementing a solar PV pilot project through a financing mechanism that makes it possible for both PV consumers and vendors to obtain credit from banks for solar rural electrification. The application of solar water heating is still very limited.
The Ugandan Electricity Regulatory Authority reported in 2008 that, "the Ugandan government is promoting solar photo-voltaic systems in homes and solar water heating in both homes and commercial enterprises in order to reduce on the evening peak load demand for grid electricity. A proposed 50MW solar- thermal project is under study at Namugoga, Wakiso District."
Despite these recent efforts, solar remains a very minor part of Uganda's actual energy balance.
Energy Efficiency and Conservation
Uganda's 2002 governmental Energy Policy notes the country's approach to energy efficiency and conservation (an approach that received much more practical support following the electricity crisis that began in late 2005):
There is significant potential for energy efficiency (EE) through improved use in households, industry, commercial buildings and the transport sector. Since expenditure on energy constitutes a large proportion of the country’s GDP and a particularly large proportion of poor household expenditure, it is necessary to emphasize the effective and efficient use of energy. Fuel substitution is important to reduce the negative impact of the use of some fuels on the environment and to reduce the cost of energy services. For instance, substitution in the use of woodfuel with [Liquefied petroleum gas] LPG will reduce deforestation.
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