Energy balance
Of the energy generated in Uganda, traditionally 93 per cent has come from fuel wood, 6 per cent from imported petroleum and 1 per cent from electricity. 6-7 per cent of households are electrified. The corresponding number for rural households is 1-2 per cent.
Power crisis
There is an acute shortage of power supply in Uganda. The growing demand for electricity and the lack of public and private investments in power infrastructure projects are major reasons. Moreover, Uganda has experienced prolonged drought coupled with increased discharges from Lake Victoria. As a result, the water level in Lake Victoria has decreased by 2 metres. Consequently, the Nalubale and Kiira hydropower plants at Jinja are now producing significantly less power than the installed capacity.
Measures to address the crisis
To address the power crisis, the Government of Uganda has introduced a number of measures, including load shedding and increased lease and import of thermal energy. Since expensive thermal energy is replacing cheaper hydropower, tariffs have been increased significantly. The industrial and business sectors have been hit particularly hard by these measures. Other Government measures include loss reduction in the distribution system, energy efficiency measures, renewable energy generation projects, use of solar cells and solar water heaters, use of biogas and the construction of hydropower plants.
Norway’s role in the energy sector
Norway is a major development partner in the energy sector in Uganda. Our main areas of co-operation include investments in national infrastructure, capacity building and twinning arrangements and support to rural electrification. In addition, Norway supports capacity building in the petroleum sector, a promising sector given several oil discoveries in the Lake Albert region.
In July 2009, Uganda and Norway signed and agreement on a 5 year support on “Strengthening the Management of the Oil and Gas Sector in Uganda”. By the time of signature, only a draft programme for the support was ready. Accordingly, the agreement has an inception period running up to the end of the year, allowing for a detailed programme to be worked out and agreed upon. You may access the frame agreement by clicking here.
The programme for the support will be available on this link as soon as it is ready.