This document provides an overview of Uganda's energy sector and investment opportunities in renewable energy. It discusses Uganda's population, government structure, economy, and current energy landscape. The energy sector relies heavily on biomass and hydroelectric power but has potential for solar, wind, and other renewables. The government's goals include increasing rural electrification and developing renewable energy projects. The document outlines Uganda's regulatory framework, financial systems, and prospects for future market development in renewable energy.
Original Description:
A guide to investing in renewable energy in East Africa
This document provides an overview of Uganda's energy sector and investment opportunities in renewable energy. It discusses Uganda's population, government structure, economy, and current energy landscape. The energy sector relies heavily on biomass and hydroelectric power but has potential for solar, wind, and other renewables. The government's goals include increasing rural electrification and developing renewable energy projects. The document outlines Uganda's regulatory framework, financial systems, and prospects for future market development in renewable energy.
This document provides an overview of Uganda's energy sector and investment opportunities in renewable energy. It discusses Uganda's population, government structure, economy, and current energy landscape. The energy sector relies heavily on biomass and hydroelectric power but has potential for solar, wind, and other renewables. The government's goals include increasing rural electrification and developing renewable energy projects. The document outlines Uganda's regulatory framework, financial systems, and prospects for future market development in renewable energy.
Ministry of Energy & Mineral Development RENEWABLE ENERGY INVESTMENT GUIDE May 2012 2 1 Contents 1 Introduction to Uganda................................................................................................. 6 1.1 Country and people............................................................................................................... 8 1.2 Administrative Regions......................................................................................................... 8 1.3 Demographics....................................................................................................................... 8 1.4 Ethnic groups, Language and Religion................................................................................... 8 1.5 Literacy................................................................................................................................. 9 1.6 Employment ....................................................................................................................... 10 1.7 Poverty Incidence ............................................................................................................... 10 2 Political situation ........................................................................................................ 11 2.1 Structure of Government.................................................................................................... 11 2.2 Political History and Current Political Situation.................................................................... 12 2.3 Economic environment ....................................................................................................... 12 2.4 The Private Sector............................................................................................................... 13 2.5 The Investment Climate...................................................................................................... 13 3 Status quo of the energy sector .................................................................................. 15 3.1 Overview............................................................................................................................ 15 3.2 Electricity market demand and supply side ..................................................................... 16 3.3 Characteristic of the electricity grid.................................................................................... 17 3.4 National Energy Policy......................................................................................................... 22 3.5 Government Priorities (Regulatory Framework) .................................................................. 22 3.6 National Energy Policy 2002 ............................................................................................... 22 3.7 The Renewable Energy Policy 2007...................................................................................... 23 3.8 Rural Electrification Targets................................................................................................ 24 3.9 FIT scheme.......................................................................................................................... 24 3.10 Market Players and Responsibilities..................................................................................... 26 4 Regulatory Framework................................................................................................ 27 4.1 Market Access (Conditions for Market Entry) ...................................................................... 27 4.2 Privatisation, limitation and exclusion ................................................................................. 27 4.3 Economic Freedom............................................................................................................. 27 4.4 Imports/ exports................................................................................................................. 27 4.5 Fiscal and financial incentives (taxation, FIT)...................................................................... 28 4.6 Standards and quality......................................................................................................... 29 5 Starting a Business Entry Options and Barriers ........................................................ 29 6 The Financial Sector .................................................................................................... 30 7 Renewable Energy Sector............................................................................................ 31 7.1 Overview............................................................................................................................. 31 7.2 Biomass............................................................................................................................... 31 7.3 Solar Energy (Thermal and PV) ............................................................................................ 31 7.4 Hydro.................................................................................................................................. 32 7.5 Wind................................................................................................................................... 34 7.6 Geothermal ......................................................................................................................... 34 7.7 Municipal Waste ................................................................................................................. 35 7.8 Investment Potential ........................................................................................................... 36 7.9 Outlook............................................................................................................................... 36 7.10 Areas of Opportunity........................................................................................................... 36 3 7.11 Grid Connected Renewables ............................................................................................... 36 7.12 Electricity Distribution ........................................................................................................ 37 7.13 Energy Products and Services.............................................................................................. 41 8 Prospects of Future Market Development.................................................................. 44 8.1 Power Sector Investment Plan............................................................................................ 44 8.2 The Energy for Rural Transformation Project............................................................. 47 8.3 Rural Electrification Plan..................................................................................................... 48 8.4 PV Targeted Market Approach (PVTMA) ............................................................................ 49 8.5 Uganda Energy Credit Capitalization Company................................................................... 49 8.6 Regional Technical Assistance Program ............................................................................... 50 8.7 Promotion of the Sustainable Supply of Biomass Energy...................................................... 50 9 Planning your investment ........................................................................................... 52 9.1 Must-knows and must-haves............................................................................................ 52 10 References .................................................................................................................. 55 4 List of Abbreviations AFD French Development Agency BECS Bundibugyo Energy Cooperative Society BEL Bujagali Energy Limited CFR Central Forest Reserves CIC Community Information Centres COMESA Common Market for Eastern and Southern Africa CSF Credit Support Facility EAC East African Community EE Energy Efficiency ERA Electricity Regulatory Authority ERT Energy for Rural Transformation EU European Union FDI Foreign Direct Investment FIs Financing Institutions FTA Free Trade Area GDP Gross Domestic Product GOU Government of Uganda ICT Information and Communication Technologies IP Investor Perception IREMP Indicative Rural Electrification Master Plan KCC Kampala City Council KIL Kilembe Investment Ltd MAAIF Ministry of Agriculture Animal Industries and Fisheries MEMD Ministry of Energy and Mineral Development MFIs Microfinance Institutions Mtoe Million Tonnes of Oil Equivalent NFA National Forest Authority NRM National Resistance Movement Party O&M Operation and Maintenance PACMECS Pader and Abim Community Multi Service Cooperative Society PAYE Pay As You Earn PPA Power Purchase Agreement PPP Public Private Partnerships PREEEP Promotion of Renewable Energy and Energy Efficiency Programme PSFU Private Sector Foundation Uganda PSIS Private Sector Investment Survey PV Photovoltaic PVTMA Photovoltaic Targeted Market Approach REA Rural Electrification Authority REB Rural Electrification Board REF Rural Electrification Fund REFIT Renewable Energy Feed-in Tariff RTAP Regional Technical Assistance Program SACCOs Savings and Credit Cooperatives SHS Solar Home System TIN Tax Identification Number UBOS Uganda Bureau of Statistics UEB Uganda Electricity Board UECCC Uganda Energy Credit Capitalization Fund UEDCL Uganda Electricity Distribution Company 5 UEGCL Uganda Electricity Generation Company UETCL Uganda Electricity Transmission Company UIA Uganda Investment Authority UNBS Uganda National Bureau of Standards URA Uganda Revenue Authority VAT Value Added Tax WENRECO West Nile Rural Electrification company 6 FOREWORD Uganda needs a renewed growth momentum to achieve its vision of attaining middle income status in 10 years. This will only be achievable if the economy can grow at annual rates above 10 percent. One of the methods envisaged to drive economic growth is value addition through primary processing and manufacturing, however power shortages, high electricity prices and financing constraints have curtailed growth in the energy sector. This underscores a dire need to attract more investment in the energy sector given that energy consumption rates stand at 10% growth rates outstripping energy generation and supply in the country. Ugandas competitive advantage in renewable energy production has not been fully exploited. The role of energy in Ugandas economic development need not be emphasized especially as the country seeks to transform its population from subsistence production to commercialised producers with capacity to carry out agro- processing to add value to their products. The Ministry of Energy and mineral Development in a joint effort with The Royal Netherlands Embassy (EKN) and Deutsche fuer Internationale Zusammenarbeit(GIZ) have produced a Renewable Investment Guide to highlight the investment opportunities in the renewable energy sector and hopefully attract more investments in renewable energy generation. Ugandas energy sector boasts of enormous renewable energy potential which remain untapped The public sector which initially undertook all energy generation projects has opened up to private investors that are not only willing but have the capacity to undertake energy generation projects In Uganda. The government of Uganda is committed to improving the supply of energy throughout the country and has put in place an environment to facilitate investment through Private Public Partnerships. Ugandas economy will continue to grow and attract Foreign Direct Investments (FDI) due to its land-linked position within the Great lakes region with direct access to markets in South Sudan, Democratic Republic of Congo, Central African Republic, Rwanda and Burundi with a total population of not less than 250 million consumers. AS food basket for the region, agro processing industries are increasing in number with an insatiable need for electricity. According to the World Bank (2013).Uganda needs to adopt a multi-pronged approach to raise productivity in order to rip the benefits of regional trade. Increasing electricity supply is not an option but a must-do for Uganda. The key areas with strong investment potential include grid connected renewable, electricity distribution, and energy products and services. There are several market development opportunities in Power Investment Plan, ERT, and PV targeted market approach, UECC, Regional technical assistance program and Promotion of Sustainable supply of biomass energy. Government would like to express its gratitude to the continued collaboration with the multilateral and bilateral development partners, EKN and GIZ in particular for facilitating this guide amongst others. I hereby welcome all intending international and local investors in the renewable energy sector For God and my country Hon. Eng. Irene Muloni, Minister for Energy and Mineral Development. 7 EXECUTIVE SUMMARY The contribution of renewable energies to the bigger energy sector in Uganda has not been harnessed fully .However the growing population as well as the emerging manufacturing sector all point to a need to increase investments in the energy sector to avoid a repeat of the economic slowdown in 2011 due to power shortages. Attracting investments into the energy sector requires elaborate and decisive actions which create awareness about Ugandas potential in producing renewable energy. This is one of the key reasons that informed the publication of this renewable energy investment guide to act as a critical resource tool for potential investors in the sector. The general investment climate in the country is discussed comprehensively, with a particular focus on business activities in the field of renewable energy providing a quick start for a potential market entrant in the energy sector in general. The government of Uganda provides for the different renewable energy generations to be added onto the national grid to increase available enough for consumption. From the guide we get a general overview of the countrys geography, economic environment and a precise insight into Ugandas political and administrative set-up. Ugandas nascent energy sector is characterized by low levels of modern energy consumption and heavy reliance on biomass energy. While the government of Uganda has put in place some long term measures to address the current energy deficit and thus meet the countrys long term needs, many times the efforts have not realised the expected impact. A critical assessment of the government investment policies, the guide points to an array of opportunities in the renewable energy sector. Improved public-private investment partnerships in power generation and supply in the power sector will enhance power production which is in tandem with Ugandas energy Policy (2002) whose overall objective is to meet the energy needs of the Ugandan population for social and economic development in an environmentally sustainable manner. This guide discusses in specific terms how several opportunities that exist in energy sector can be taken advantage of, with a particular focus on renewable energies to reduce the overwhelming electricity supply deficit National statistics indicate that 80% of Ugandans reside in rural areas and predominantly use rudimentary and inefficient technologies in their energy consumption. It is therefore deduced that investment in this area will go a long way in satisfying the general demand. Whereas the Renewable Energy Policy of 2007 reinforces the governments commitment to the development and utilization of renewable energy resources and technologies, little has been done in attracting investment in this area, despite the several opportunities in the sector. The overall aim is to make renewable energy a substantial part of the national energy consumption and increase its availability. It thus makes a case for stronger investment in the sector, while revealing the relevant aspects of the legal regime governing the sector and the challenge of the un-updated laws. On the regulatory framework, the guide outlines the conditions for market entry for private entities, while giving provisions for the fiscal and other incentives available. Several opportunities available in the sector are covered in this guide, in addition to potential financing options In conclusion, the guide makes substantial recommendations to the government and other actors to ensure that the different laws governing the sector are up to date with the emerging market trends in the sector ., it is hoped that this guide will serve as an important tool in improving investment in the sector. 8 Introduction to Uganda 1.1 Country and people Uganda is a landlocked country in Eastern Africa; bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of Congo and on the south by Rwanda and Tanzania. Uganda averages about 1,100 metres above sea level, and this slopes very steadily downwards to the Sudanese Plain to the north. Ugandas total area is 241,550km 2 . It contains many large lakes; Lake Victoria, Lake Kyoga, Lake Albert, Lake Edward and the smaller Lake George. It lies almost completely within the Nile basin. The Victoria Nile drains from the Lake Victoria into Lake Kyoga and then into Lake Albert on the Congolese border before running northwards into South Sudan. Ugandas climate is equatorial; generally rainy with two dry seasons (Dec Feb and Jun Aug). Lake Victoria influences the climate in the south; southern Uganda is wetter with rain spread throughout the year. Most important cities are located in the south, near Lake Victoria, including the capital Kampala and the city of Entebbe. The north east part of the country is semi-arid. Ugandas natural resources include arable land, regular rainfall, and deposits of copper, cobalt and gold. The country has largely untapped reserves of both crude oil and natural gas estimated at over 1 billion barrels of oil and 14 million cubic feet per day of natural gas 1 . Agriculture is the most important sector of the economy, employing over 80% of the work force. In 2005, cultivated land cover was estimated at 99,018.4km 2 . Coffee accounts for the bulk of export revenues. Other key exports earners are tea, tobacco and fish and fish products 2 . 1.2 Administrative Regions Uganda is divided into districts, spread across four administrative regions: Northern, Eastern, Central and Western as indicated in Figure 1 below. The districts are subdivided into counties. There are over 100 districts; most are named after their main commercial and administrative towns. Each district is divided into counties, sub-counties, parishes and villages. 1.3 Demographics According to the 2002 Uganda Population and Housing Census, the population was 24.2 million persons. The annual population growth rate between 1991 and 2002 censuses was 3.2%. Nearly half of the population was below the age of 15 in 2002 and the population structure is expected to remain youthful for the next fifteen years. At 3.2% growth rate, the current population is estimated at 33.2 million. The majority of the population lives in rural areas; only 12% of the population in 2002 was living in urban areas. Kampala is the prime urban centre; it had 40% of the total urban population (1.2million persons) in 2002 3 . Figure 2 below shows Ugandas population density map. 1.4 Ethnic groups, Language and Religion Uganda is home to many different ethnic groups, none of whom forms a majority of the population. Around forty different languages are regularly and currently in use in the country. English is the official language and 1 Tullow Oil estimates 2 Statistical Abstract 2011 Uganda Bureau of Statistics 3 2002 Uganda Population and Household Census 9 Luganda is the most widely spoken local language in Uganda. Luganda is spoken predominantly by the Ganda people (Baganda) in the urban concentrations of Kampala, the capital city. Figure 1: Ugandas Administrative Regions 4 1.5 Literacy Literacy rate among persons aged 10 years and above has increased by 4% from 69% in 2005/06 to 73% in 2009/10. The male literacy rate (79%) is higher than that for females (66%). Kampala had the highest literacy rate (92%) compared to other regions. Excluding Kampala, the Central region had the highest literacy rate (83%) while the Northern region had the lowest (64%) 5 . In terms of religious affiliation, Christians made up about 84% of Uganda's population, with Muslims representing 12%. The remainder of the population follow traditional religions, non-Christian religions or have no religious affiliation (0.9%) 6 . 4 http://www.nationsonline.org/oneworld/map/uganda-administrative-map.htm 5 Uganda National Household Survey 2009/10 6 Statistical Abstract 2011 Uganda Bureau of Statistics 10 1.6 Employment In 2010 the labour force was estimated at 11.5 million persons reflecting an annual growth rate of 4.7% from 2005/2006 and the Labour Force Participation Rate 7 was 79%. 76% of the labour force was self-employed while 24% was in paid employment. The primary sector (agriculture, mining and quarrying) employed 66% of the working population while the service and manufacturing sectors engaged 28% and 6% of the labour force respectively. 67% of the working population in the non-agricultural sector were in informal employment 8 . Kampala district together with the rest of Central region had the highest proportion of the working population (30%), while Northern region had the least (19%) 9 . Figure 2: Uganda Population Density Map 10 1.7 Poverty Incidence Rural poverty rates in Ugandas sub-counties range from <15% - >60% of the population as illustrated in the Figure 3 below. Brown areas indicate higher poverty levels and green areas represent lower poverty levels. There is a high geographic concentration of poverty in northern districts (e.g., Gulu, Amuru, Kitgum, Pader, 7 This is a measure of the extent to which a countrys working age population (14-64 years) is economically active 8 Informal employment identifies persons who are in precarious employment situations irrespective of whether or not the entity for which they work is in the formal or informal sector. 9 Statistical Abstract 2011 Uganda Bureau of Statistics 10 2002 Uganda Population and Household Census 11 Moroto, and Nakapiripirit Districts) and low poverty in the southwest and central part of the country (e.g., in parts of Mbarara, Bushenyi, Isingiro, Kibaale, and Wakiso Districts). The reasons for this spatial pattern include factors such as rainfall and soil quality (which determine agricultural potential), land and labour availability, degree of economic diversification, level of market integration, and issues of security and instability (the latter is especially relevant for the northern parts of Uganda). Figure 3: Poverty Rate in Uganda: Percentage of rural sub-county population below the poverty line, 2005 11 2 Political situation 2.1 Structure of Government Uganda is a presidential republic, in which the President of Uganda is head of state, head of government and head of the armed forces. Executive power is exercised by the government and legislative power is vested in both the government and the National Assembly. The system is based on a democratic parliamentary system with universal suffrage for all citizens over 18 years of age. 11 http://www.wri.org/map/poverty-rate-uganda-percentage-rural-subcounty-population-below-poverty-line-2005 12 2.2 Political History and Current Political Situation Since the late 1980s Uganda has rebounded from civil war and economic catastrophe to become relatively peaceful, stable and prosperous. However, the north of the country still remains blighted due to the war counflicts that raged on for some time in that region. Since becoming president in 1986, Yoweri Museveni has introduced democratic reforms and has been credited with substantially improving human rights. In addition, Western-backed economic reforms produced solid growth and falls in inflation in the 1990s. Although the country is still grappling to industrialise, the discovery of oil and gas in the west of the country has boosted confidence in the economy. The oil industry in the country is expected to propel a number of other industries in the country thus a greater need for a conducive environment for the same. A constitutional referendum cancelled the 19-year ban on multi-party politics in July 2005 and parliament is currently made up of representatives from 6 political parties and 30 independents. The National Resistance Movement party (NRM) has 263 seats and currently dominates parliament. The leading opposition party is the Forum for Democratic Change with 34 parliamentary seats. There has been some public dissatisfaction due to the unstable commodity prices at times when the Uganda shilling is stretched against more stable currencies. In the recent past, issues around land ownership have sparked off confrontations which have led to riots, especially in 2009 and 2010. The discovery and development of oil reserves in western Uganda could also increase political tensions with local communities in western Uganda. Local opposition has already arisen over land rights and forced displacement, the oil development companies employment of foreigners rather than natives, and concerns over how the wealth will be distributed 12 . 2.3 Economic environment Uganda has experienced sustained economic growth averaging 7% annually over the past 15 years. In 2010, the economy grew at about 6% while core inflation remained low, falling to 2.5% by the end of the year. From the beginning of 2011, the country experienced price increases for food crops, fuel and most consumer goods. The countrys headline inflation started soaring in the middle of last year touching 30.4% in October. The price of food crops rose dramatically, reaching an annualized inflation rate of 42% in July while prices for Electricity, Fuel and Utilities items increased by 9.1% for the year ending September 2011 before it started to decline. Inflationary pressures were the result of a number of factors; 16% output reduction by the agricultural sector partly due to a prolonged dry season in most parts of the country, increased global commodity prices and the depreciation of the Uganda Shilling. Furthermore, at regional level, countries in the East African Community all suffered high food inflation as a result of drought and the high global food prices and increasing the demand for food from Uganda. Since that period, year-on-year inflation has been reducing marginally. The Bank of Uganda raised the central bank rate from 13% in July last year to 23% in October and started easing when inflation slowed. The Bank kept the rate unchanged in April 2012 at 21% to further discourage access to bank credit and fight inflation. Government officials to predict that inflation will be in single digits by the end of 2013. The broad sector composition of Ugandas Gross Domestic Product (GDP) during 2010 was; Services (46.2%), Industries (25.4%) and Agriculture (22.5%). The largest sub-sector contributors in 2010/2011 were food crops, trade and construction. Nominal Per Capita GDP increased by 7.5% 13 . 12 Uganda Humanitarian Profile - 2012 13 Statistical Abstract 2011 Uganda Bureau of Statistics 13 The countrys trade deficit continued to deteriorate during the 2010/2011 period. Overall trade deficit grew to 14 2,107.6 million in 2010 from 1,541 million in 2009. In 2010, all traditional exports 15 recorded a significant increase in export receipts except cotton. Coffee remained the main foreign exchange earner for the country, although its share to total export earnings declined marginally. In 2010, petroleum and petroleum products took the highest import bill of 716 million followed by road vehicles with 327 million, then telecommunications instruments with 178 million and iron and steel value estimated at 178.6 million. Table 1 below presents major imports and exports by percentage value. Table 1: Formal exports and imports by percentage value Major Exports Major Imports Coffee 17.5% Petroleum and petroleum products 19.7% Fish and fish products 7.9% Road vehicles 9% Cellular telephones 4.9% Machinery for specialized industries 5% Petroleum products 4.5% Iron and steel 4.9% Cement 4.4% Telecommunications instruments 4.9% Tea 4.2% Medical and pharmaceuticals 4.4% Tobacco 4.2% Cereals and cereal preparations 4.0% NB: Total formal export revenue 1.25 billion; total formal import bill 3.64 billion 2.4 The Private Sector Ugandas total business population in the country is estimated at about 500,000 (although most are micro and small businesses) 16 . This represents a growth of 185% percent since 2001/02. Most of these businesses are fairly new; 50% are less than 6 years old. Majority of businesses are in the trade (61%) and hotels and food services sector (14%). Information about the legal ownership of businesses shows that the majority of businesses are sole Proprietorships. Businesses that operated as Partnership or Private Limited Companies each accounted for only 2%. With only 2% of the businesses reported to be members to any association, business advocacy is still in its infancy. 2.5 The Investment Climate Strong economic growth, open markets, and abundant natural resources provide good opportunities for knowledgeable investors in Uganda. The results of the 2010 Private Sector Investment Survey (PSIS) 17 indicate that foreign private capital inflows to Uganda began to recover in 2009 following the slowdown which had occurred in 2007 and 2008. Foreign direct investment (FDI) rose by 12% in 2009, to over US$800 million. The sectors which attracted most of the FDI were financial services, manufacturing, Information and Communications, Technology and mining. Table 2: Value of projects licensed by the Uganda Investment Authority 18 (listed in million $) 14 1 = 1.279US$ 15 Coffee, tea, tobacco and cotton 16 2010 Census of Business Establishments Report 17 The 9 th Private Sector Investment Survey (PSIS) 2010 was conducted by the Bank of Uganda in collaboration with Uganda Bureau of Statistics and Uganda Investment Authority (UIA). PSIS provides annual information on the: scale of investment, composition, causes, sustainability and macroeconomic implications. The 2010 survey targeted a sample of 698 enterprises drawn from; enterprises with foreign assets and liabilities from the investor register, the Top tax payers and enterprises which were newly licensed by UIA. 18 Uganda Investment Authority 14 Sector 2006 2007 2008 2009 2010 Agriculture, Hunting, Forestry and Fisheries 72.21 28.99 60.89 203.27 664.55 Community, Social and Personal Services --- 41.06 34.10 66.35 32.57 Construction 32.46 223.83 58.10 175.88 125.70 Electricity, Gas and Water --- 742.50 173.34 69.93 12.57 Financing, Insurance, Real Estate, Tourism, and Business Services 351.6 109.9 380.89 309.84 294.97 Manufacturing 291.2 325.36 641.23 577.36 327.20 Mining and Quarrying 10.48 88.25 30.36 53.8 103.31 Transport, Communication and Storage 468.6 444.81 946.12 84.65 49.33 Wholesale & Retail Trade, Catering & Accommodation Services --- 218.33 55.90 31.04 62.85 Total 1226.55 2223.03 2380.93 1571.82 1673.03 The Investor Perception (IP) rating, undertaken as part of the PSIS, indicated good prospects for private sector growth in the medium term. The factors considered to have promoted favourable business environment included domestic and international market size; availability of local credit facilities; cost and efficiency of support services such as telecommunication, banking, insurance, and internet; availability and productivity of skilled and unskilled labour and efficiency of some regulatory and government agencies. However, the private sector also identified a number of constraints particularly related to effects of exchange rates, inflation and corruption; cost and efficiency of electricity and road transport, and the effect of the financial crisis on turnover and import costs. Uganda is open to foreign investment and provides attractive incentives for medium and long-term foreign investors. The Heritage Foundation's 2010 Index of Economic Freedom ranked Uganda's economy 76 of 179 countries, and as the fifth freest economy of 46 countries in sub-Saharan Africa based on the ease of doing business, openness to trade, property rights, and fiscal and monetary policy. In 2001, Uganda created the Uganda Investment Authority (UIA) to assist foreign and domestic investors. The Investment Code allows foreign participation in any industrial sector except those touching on national security or requiring the ownership of land. The Investment Code also allows licensing authorities to impose performance obligations on foreign investors to which nationals are not subject. While the Code does not specify these obligations, UIA imposes requirements based on the size of investment, staff training, local employment, local procurement and environmental protection. A revised investment code is still under review. Once adopted, this code will turn the UIA into a one-stop shop for investors by granting the UIA new powers to obtain secondary permits for investor operations, allocate government resources for investment, and provide government incentives for rural investment. Uganda is moving away from a much-criticized emphasis on ad hoc, venture-specific incentives for potential investors in favour of an approach aimed at levelling the playing field for all investors. Uganda now offers investment incentives and is implementing reforms to ease business transactions. The UIA is implementing a plan to construct industrial parks 19 in the country's largest population centres. The government is financing the project with a 21 million World Bank loan and 7.8 million budget allocation. The first park is located eight miles east of Kampala in Namanve, with electricity, sewage systems, roads, and telecommunications infrastructure jointly funded by the World Bank and the government. Ugandan policies, laws, and regulations are generally favourable towards foreign investors, though revised legislation is needed. Uganda is revising more than 20 commercial and bankruptcy laws to reduce 19 http://www.ugandainvest.go.ug/index.php?option=com_k2&view=item&layout=item&id=27&Itemid=236 15 administrative delays and the cost of doing business. This includes plans to revise the Companies Law, modernize and speed up bankruptcy procedures, strengthen intellectual property rights protections, expand and clarify provisions on mortgages, update commercial contract law, and modernize provisions for e- commerce and electronic signatures. Most of these laws are either still in the drafting phase or awaiting Parliamentary review 20 . 3 Status quo of the energy sector 3.1 Overview Ugandas energy sector is undeveloped and characterised by among other things, extremely low levels of modern energy consumption and heavy reliance on biomass energy which account for 93% of total energy consumption. It is envisaged that this trend will continue in the foreseeable future. Petroleum accounts for 6% while electricity account for 1% of the total national energy balance. Biomass is predominantly used at the household level for cooking and heating applications. In addition, a considerable amount of biomass is also used in the services/commercial, institutional, cottage industry and industrial sectors. Electricity access is currently about 5.91%; 2% in rural areas 21 . Uganda's power sector is suffering from a shortage of generating capacity due to prolonged drought, inadequate investment in least cost generation capacity and a relatively high load growth; the power deficit is currently estimated at 130MW 22 . This has resulted in massive electricity rationing and has forced the country to resort to expensive thermal generation. The country currently depends on hydroelectricity for around 60% of its total power generation output; the remainder of Uganda's power generation comes from thermal power stations, fired by bagasse and diesel. Electricity has been heavily subsidized by the government; the Ministry of Energy estimates that since 2005 the government has spent about 390 million on power subsidies. The subsidies were used to minimize the shock of high tariffs when thermal generation was introduced in 2005. Although the subsidies have not been completely scrapped, it is anticipated that subsequent rounds of price hikes will be implemented in the near future. The decision will encourage the increase of private sector investment in the power supply sector and also enable the Uganda government to invest in large hydro power projects. The government has put in place a comprehensive plan to address the current energy deficit and meet the long term energy needs. The plan is to enhance public-private partnerships in power generation and supply and the sustainability of the power sector. The strategies include: energy loss reduction in the power system, procurement of additional thermal generation capacity, energy efficiency/demand side management, renewable energy generation projects including small hydro, cogeneration in sugar mills and biomass- gasification plant, promotion of solar water heating in both homes and commercial enterprises and construction of Bujagali (250MW) and Karuma (150-200MW) projects. The long term measures include development of four large hydro power sites, use of indigenous petroleum resources for thermal generation; Interconnection of the regional power grid; Use geothermal, peat and other renewable sources of energy. 20 2011 Investment Climate Statement Uganda (Source: US Embassy Uganda) 21 Uganda Accelerated Rural Electrification Project Report 2011 22 The Electricity Distribution Utility Umeme 16 3.2 Electricity market demand and supply side The enactment of the new Electricity Act in 1999 provided the legal basis for the privatisation of Uganda Electricity Board (UEB). The unbundling of UEB into the segments of generation, transmission, and distribution was effected in March 2001. The successor companies were registered in accordance with the Companies Act under the following names: Uganda Electricity Generation Company (UEGCL); Uganda Electricity Transmission Company (UETCL); and Uganda Electricity Distribution Company (UEDCL). In 2003, after a competitive bidding process, UEGCL concessioned out its hydro generation assets at Nalubaale and Kiira to Eskom (U) Ltd 23 . In March 2005, UEDCL also concessioned out its distribution assets to Umeme Ltd 24 . Both concessions are for 20 years. UEGCL and UEDCL remain asset owners for generation at the two hydro dams and for the distribution assets (33kV and below) which are leased to Umeme. UETCL remained a government company in charge of the transmission network maintenance, system operation and dispatch, and bulk purchase and supply of electricity. Uganda operates a single buyer market model; UETCL purchases all the generated electricity and sells to electricity distribution concessionaires. The bulk supply tariff is currently 6.48 compared to an average weighted generation cost of 9.76. Even with suppressed demand total energy purchases have been increasing by an average of 14.7% over the last four years. Table 3 below shows the trend in energy purchases from 2006-2010. Table 3: UETCL Energy Purchases (GWh)25 2006 2007 2008 2009 2010 Eskom 1,160.45 1,263.54 1,373.44 1,234.98 1,254.80 Aggreko 1 (Lugogo) 319.95 272.80 141.39 - - Aggreko 2 (Kiira) 50.03 266.21 239.59 126.34 150.98 Aggreko 3 (Mutundwe) 99.52 395.14 417.78 Jacobsen (Namanve) 116.57 353.09 372.58 Kinyara 4.47 4.80 Kakira 80.31 Electromax 0.28 82.56 Bugoye 15.91 66.36 Backflows to UETCL 19.98 11.63 130.68 346.10 331.20 Electrogaz 2.18 1.84 2.29 2.33 2.93 Kasese Cobalt Company Limited 1.53 0.74 1.80 1.31 3.42 Kilembe Mines Limited 28.05 29.64 29.80 28.35 22.31 KPLC(IMPORT) 46.73 58.25 40.92 25.06 29.21 TOTAL 1,628.90 1,904.66 2,175.99 2,533.37 2,819.25 Annual Percentage Change 16.93 14.25 16.42 11.28 Table 4: Installed Electricity Capacity (MW), 2008-2010 26 23 Eskom Uganda Limited (EUL) is a subsidiary company of Eskom Enterprises (Proprietary) Limited. South Africa. Eskom Enterprises Proprietary Ltd is the investment arm of Eskom Holdings Ltd, a leading electricity generation company in Africa with its head office located in Johannesburg South Africa. 24 Umeme is owned by Actis, a private equity firm based in the UK. 25 Uganda Electricity Transmission Company 26 Uganda Electricity Transmission Company 17 Plant Name 2008 2009 2010 Installed Capacity 527 492 539.5 Hydro Electricity 315 328 352.5 Kiira 120 120 120 Nalubale 180 180 180 Kasese Cobalt 10 10 10.0 Kilembe Mines 5 5 5.0 Bugoye Tronder Power - 13 13 Mpanga - - 18 Ishaha Ecopower - - 6.5 Thermal Electricity 200 150 170 Lugogo 50 - - Electromax - - 20 Kiira 50 50 50 Jacobsen Plant- Namanve 50 50 - Mutundwe 50 50 - IDA Plant - - 50 Aggreko II - - 50 Bagasse Electricity 12 14 17 Kakira 12 12 12 Kinyara - 2 5 UETCL currently purchases electricity from the hydro and thermal power plants shown in Table 4 above. For a long time, Uganda relied solely on the hydropower generation from the Owen Falls Dam as the sole source of grid electricity. Whereas the installed capacity of the complex is 380 MW (180 MW at Nalubaale and 200 MW at Kiira power plants), the effective capacity of the complex has been as low as 100 MW due to frequent droughts in the region resulting in chronic power shortages since 2005. As part of the short term solution to the power problem, the government of Uganda contracted Independent Power Producers to supply electricity from diesel fired generators; this began with an initial 50MW in May 2005 and has grown to 170MW. The future outlook is optimistic; private sector players generating cheaper power are anticipated e.g.: Bujagali Energy Limited (BEL) will be launched in October 2012; Several small scale power generation plants (from hydropower and cogeneration) are under different stages of development and these may, in aggregate, result in as much as 100 MW of generating capacity; Other large hydropower stations on the Nile River are being considered by Government: Isimba, Ayago, Kalagala, Murchison Falls, etc; Other renewable energy sources like geothermal, solar, biomass, peat and wind will also be developed. Tullow Oil (an international oil and gas company) conducting oil exploration in the Lake Albert western region and has applied to the Electricity Regulatory Authority for an electricity generation license for a 57 MW power plant. 3.3 Characteristic of the electricity grid Transmission Network As illustrated in Figure 4 below major developments and investments are being undertaken to strengthen Ugandas transmission network. Projects are being developed to transmit electricity from upcoming power 18 plants, to improve the electricity access, reliability, and quality of supply to consumers in the country and for regional interconnection projects. These projects include evacuation of power from Bujagali Hydro Power Station, mini-hydro power plants in the Western region, a thermal power plant in Mputa near the Lake Albert oil fields, as well as a transmission line to Lira, to serve the growing energy needs of the north eastern region of the country. UETCL has developed a 10-year grid investment plan estimated at US$1.2 billion to implement these projects; details of these projects are presented in UETCLs business plan 27 . To facilitate power exports and imports; 220kV interconnection projects with Kenya and Rwanda are under development. In addition, a feasibility study for interconnection with Tanzania has been completed while the feasibility study for interconnection with the Democratic Republic of Congo is ongoing. 27 http://www.uetcl.com/UserFiles/File/Businessplanannextures.pdf 19 Figure 4: UETCL electricity transmission network 28 28 Uganda Electricity Transmission Company Limited 20 Distribution Network There are 5 electricity distribution concessionaires, the largest of which is Umeme. The other concessionaires include Ferdsult Engineering Services (3 concession areas, 8 field offices), Kilembe Investment Ltd (KIL), the Bundibugyo Energy Cooperative Society (BECS), and the Pader and Abim Community Multi Service Cooperative Society (PACMECS). Each of whom serve about 1,500 consumers in each concession area. Outside the Umeme concession area, grid extensions are financed by the Rural Electrification Agency (REA) with the funding support of several donors. The network in these areas is owned by REA. Umeme, the national electricity distribution company, supplies over 450,000 customers. Of these, 2,000 are large and medium-scale enterprises; 90,000 are small businesses and 350,000 are "domestic" or household consumption. 60% of total electricity is consumed by the 2,000 large industrial and medium scale enterprises. Distribution tariffs range from 7.8-17.2 per kWh. The West Nile region 29 is not connected to the national grid. In 2003, government established the West Nile Rural Electrification company (WENRECO) and leased it to Industrial Promotions Services with a mandate to construct a 3.5MW mini hydro power project on River Nyagak to be completed in 2006. WENRECO serves about 3,000 consumers principally in the towns of Arua and Nebbi. The proposed hydro project has delayed for 6 years during which time the towns have been unreliably supplied with power from a 1.5MW diesel generating plant. Off-grid stations were not part of the concessioned assets and were retained by UEDCL to manage and operate. UEDCL operates diesel powered off-grid stations in Moyo and Adjumani (in the West Nile region), Moroto (in the North East) and Kalangala (on Bugala Island within Lake Victoria). These stations are operated on non-cost reflective tariffs. These off-grid stations are all likely to be interconnected with the national grid system and would fall under Rural Electrification Authoritys management system for the on-grid electrification program. One of the objectives of privatising UEDCL through a 20 year concession was to bring on board private investors to rehabilitate, upgrade and expand the distribution network. Since 2005, Umeme have reduced energy losses from 38% to 27.7%; replaced over 120,000 poles, 2,000 transformers and 40 sub-stations; refurbished over 1,500kms of medium voltage (MV) and low voltage (LV) lines; and introduced SCADA 30 , a prepayment system and automated meter reading. 29 West Nile sub-region is a region in north-western Uganda that consists of the districts of Adjumani, Arua, Koboko, Maracha-Terego, Moyo, Nebbi and Yumbe. The sub-region received its name from being located on the western side of the White Nile 30 Supervisory Control and Data Acquisition (SCADA), a computer systems that monitor and controls electric power distribution infrastructure 21 Figure 5: Access to grid electricity by district 31 31 Uganda Accelerated Rural Electrification Project Report 2011 22 3.4 National Energy Policy 3.5 Government Priorities (Regulatory Framework) 3.6 National Energy Policy 2002 The Energy Policy for Uganda which was approved by Cabinet and published in September 2002. The goal of the Energy policy is to meet the energy needs of the Ugandan population for social and economic development in an environmentally sustainable manner. The energy policy seeks to meet the following broad objectives: 1. To establish the availability, potential and demand of the various energy resources in the country i.e.: Prepare a database on all the available energy resources and energy consumption patterns in order to have a long term perspective of the options for demand/supply matching; and package information on potential projects for investment. Build the necessary local capacity to acquire the required data and assess and evaluate the resources. 2. To increase access to modern affordable and reliable energy services as a contribution to poverty eradication i.e.: Attract private capital and management in the energy sector; promote competition between energy service providers and promote the development of markets in energy technologies and services. Put in place a conducive environment to accelerate rural energy supply and access by: (i) Applying subsidies exclusively on capital investment; (ii) Applying light-handed regulation to facilitate investment in rural energy projects (iii) Having differentiated tariffs for different areas or projects to reflect investment and supply costs; (iv) Exploring schemes to assist consumers to purchase appliances thereby increasing the speed at which the load of new consumers matures; and (v) Formulation of guidelines on organising rural communities to enable them access better provision of energy services Intensify provision of consumer information, education and technical advice in the use and conservation of energy. Work with financial institutions to establish sustainable financing mechanisms for energy programmes. 3. To improve energy governance and administration in order for the energy sector to operate efficiently and play its role in the socio-economic development of the country i.e.: Clarify the roles and functions of the various institutions involved in the energy sector increasing the role of the private sector and other NGOs and communities; Create a transparent legal and regulatory framework for the sector; Build capacity at the national and local levels for better formulation and implementation of energy policies and programmes; Build the capacity of regulatory agencies to provide even handed and predictable regulation; Develop incentives to retain local human resource for the energy sector; and Involve all stakeholders in the formulation of new policies in the energy sector. 4. To stimulate economic development by ensuring that energy plays a central role in the economic development of the country and in the region i.e.: Encourage competition within the energy markets to achieve efficiency. Attract investments in energy services provision by providing appropriate incentives. Ensure energy supply security and reliability. 23 Promote energy trade within the region. 5. To manage energy-related environmental impacts. Government will ensure that environmental considerations are given priority by energy suppliers and users to protect the environment and put in place a monitoring mechanism to evaluate compliance with established environmental protection guidelines i.e.: Promote the use of alternative sources of energy and technologies which are environmentally friendly; Sensitise energy suppliers and users about the environmental issues associated with energy; Work towards the establishment and acceptance of broad targets for the reduction of energy- related emissions that are harmful to the environment and energy users; Promote efficient utilisation of energy resources; and strengthen the environment-monitoring unit in the energy sector. 3.7 The Renewable Energy Policy 2007 Whereas the 2002 Energy Policy laid down Governments commitment to the development and utilization of renewable energy resources and technologies. The Renewable Energy Policy, which was approved by Cabinet on the 29th March 2007, reinforced that commitment. The Governments policy vision for Renewable Energy is to make modern renewable energy a substantial part of the national energy consumption. The overall policy goal is to increase the use of modern renewable energy, from the current 4% to 61% of the total energy consumption by the year 2017. In order to achieve the Policy Vision and Goal, the following supporting objectives will be pursued: Maintain and improve the responsiveness of the legal and institutional framework to promote renewable energy investments. Establish an appropriate financing and fiscal policy framework for RET investments. Mainstream poverty eradication, equitable distribution and gender issues in renewable energy strategies. Acquire and disseminate information in order to raise public awareness and attract investments in renewable energy sources and technologies. Promote research and development, international cooperation, technology transfer and adoption of standards in renewable energy technologies. Utilize biomass energy efficiently, so as to contribute to the management of the resource in a sustainable manner. Promote the sustainable production and utilization of bio-fuels. Promote the conversion of municipal and industrial waste to energy. Some key strategies elaborated in the policy include: Publish a standardized Power-Purchase Agreement (PPA) with feed-in-tariffs. Develop appropriate regulations for grid connections and wheeling of electricity generated from renewable energy Implement, through public-private partnerships (PPP), innovative financing mechanisms, including targeted subsidies. Introduce fiscal measures that favour renewable energy investments. Implement innovative risk mitigation mechanisms and credit enhancement instruments. Continuously acquire data on the renewable energy resource availability. Promote, in collaboration with NFA 32 and MAAIF 33 , the growing of energy crops. Provide incentives for farmers to establish commercial woodlots. 32 National Forest Authority 33 Ministry of Agriculture Animal Industry and Fisheries 24 Develop appropriate legislation for the use of bio-fuels. Provide incentives for the conversion of wastes to energy. Put in place fiscal measures that will discourage open burning or disposal of wastes without extracting their energy content. 3.8 Rural Electrification Targets Statutory Instrument No. 75 of 2001, The Electricity (Establishment and Management of the Rural Electrification Fund) Instrument 2001, established three inter-related mechanisms for management of Ugandas rural electrification program namely, the Rural Electrification Fund (REF), the Rural Electrification Board (REB) and the Rural Electrification Agency (REA) all supervised by the Minister responsible for Energy. REA serves as the Secretariat to the Board whose principal responsibility is to ensure management of the Fund for equitable promotion of rural electricity access and connectivity. REA prepared a 7-year Strategic Plan covering the period 2005/06-2014/12 to provide a clear decision platform for carrying out its mandate The main goal of the REA/REB Strategic Plan is to facilitate achievement of Ugandas target of 10% Rural Electrification Access by 2012.This goal is the first main target in the long process of fulfilling REAs vision which is: Universal access to electricity by 2035. The Plan seeks to achieve the following specific objectives: 1. Facilitate an average connection rate of at least 1 percentage point of rural consumers per annum over the Plan period - This rate translates into connections of between 40,000-50,000 consumers every year. REAs projections anticipated that growth would initially be slow but pick up rapidly starting FY2007 to reach an average of 74,000 connections per year by 2012. 2. Promote equitable rural electrification access having special regard to those areas of the country that are currently marginalized - REA will initiate and promote affirmative measures intended to enhance investment for RE generation and distribution in the 19 districts currently disadvantaged in terms of socio-economic development by the long drawn conflicts. These areas include Northern and North- Eastern Uganda as well as the Rwenzori region in Western Uganda. 3. Establish and maintain a comprehensive database on Ugandas Rural Electrification sub-sector to facilitate informed decision-making - Prepare, maintain and publicize locally, regionally and internationally, a user friendly National Rural Electrification Database. The database will be an information platform on Ugandas rural energy potential (hydro and other renewable sources), supply and demand, completed and ongoing projects, tariff levels, environmental considerations, etc. 4. Enhance the available financial resource base for Rural Electrification - It has been estimated that as much as 374 million may be required in subsidies to realize the connection of 400,000 consumers. 3.9 FIT scheme Under the Renewable Energy Policy (2007), a Renewable Energy Feed-in Tariff (REFIT) was initially established in Uganda which ran from 2007 to 2009. Due to limited uptake by project developers, the REFIT was reviewed in 2010 and a new tariff was developed based on updated levelised costs of production. In consultation with the ERA, the system operator (currently UETCL) shall publish the REFIT tariffs for priority technologies as approved by the ERA. Under its mandate as single buyer, UETCL will issue and sign standardised Power Purchase Agreements (PPA) with qualifying renewable energy generators. Under the 25 PPA, UETCL shall be obliged to purchase power generated under the REFIT from licensed renewable energy electricity generators subject to fulfilment of all necessary licence conditions. UETCL shall be obliged to connect licensed renewable energy electricity plants to the grid and to transmit purchased electricity from renewable energy electricity generators licensed under the REFIT. Qualifying renewable energy generators shall be defined as: Priority technologies i.e. small hydro, geothermal, bagasse, landfill gas, biogas, biomass, wind and solar (considered priority 2). Projects of 0.5- 20MW. Projects with an installed capacity greater than 20 MW will be required to negotiate a tariff and PPA with UETCL, on a case by case basis. Plants including additional capacity resulting from project modernisation, repowering and expansion of existing sites, but excluding existing generation capacity. Projects connected to the National Grid; off-grid projects may be included in future developments of the REFIT, although this would require collaboration with REA to develop the technical and operational modalities. In particular, this will require the establishment of a mechanism for the monitoring and sale of power to the System Operator as the Single Buyer Priority technologies shall include: Priority 1 technologies for which the levelised cost is below or close to the avoided cost Priority 2 technologies for which the levelised cost is significantly above the avoided cost and therefore limited annual allowable installed capacities shall apply. The tariffs for each priority technology are determined using a US$/kWh levelised cost approach, based on the electricity generation costs from the renewable energy sources. The key inputs are based on general investment assumptions and specific assumptions for each of the priority technologies that influence the power generation costs. The tariff shall be set according to the year in which the licence is issued and are provided in Table 5 below. The tariff will be paid for a guaranteed payment period of 20 years, with O&M costs adjusted on an annual basis for inflation. The REFIT tariffs are listed in the table below. They are currently undergoing revision. Table 5: REFIT Phase 2 tariffs, O&M%, capacity limits and payment period 34 011 2012 2013 2014 (Years) Technology Tariff (US$/kWh) O&M % Cumulative Capacity Limits (MW) Payment Period (yrs) 2011 2012 2013 2014 Hydro (9 ><= 20 MW) 0.073 7.61% 45 MW 90 MW 135 MW 180 MW 20 Hydro (1 ><= 8 MW) Linear tariff 7.24% 15 MW 30 MW 60 MW 90 MW 20 Hydro (500kW ><= 1 MW) 0.109 7.08% 1 MW 1.5 MW 2 MW 5 MW 20 Bagasse 0.081 22.65% 20 MW 50 MW 75 MW 100 MW 20 Biomass 0.103 16.23% 10 MW 20 MW 30 MW 50 MW 20 Biogas 0.115 19.23% 10 MW 20 MW 30 MW 50 MW 20 Landfill gas 0.089 19.71% 10 MW 20 MW 30 MW 50 MW 20 Geothermal 0.077 4.29% 10MW 30MW 50MW 75 MW 20 Solar PV 0.362 5.03% 2 MW 3 MW 5 MW 7.5 MW 20 Wind 0.124 6.34% 50 MW 75 MW 100 MW 150 MW 20 34 Uganda Renewable Energy Feed-in Tariff (REFIT) Phase 2 Approved Guidelines for 2011-2012 26 3.10 Market Players and Responsibilities In order to achieve Government of Ugandas policy objective for renewable energy resources, a number of institutions, each with its own legal mandate, are involved. These include The Ministry of Energy and Mineral Development (MEMD), which is responsible for the overall management of the sector, dealing specifically with energy policy formulation, implementation and monitoring. The Electricity Regulatory Authority (ERA) is responsible for regulating the electricity sector. Some of functions of the ERA are: to issue licenses for the generation, transmission, distribution or sales of electricity in the country; to establish a tariff structure and approve rates and tariff charges. The Rural Electrification Authority which has a broad mandate in rural electrification which includes providing policy advice to the Rural Electrification Board 35 , operationalization of Ugandas Rural Electrification Strategy and Plan and administering the Rural Electrification Fund (REF) The Uganda Electricity Transmission Company Limited (UETCL) is the System Operator and owns transmission lines above 33kV. UETCL is the bulk supplier and single buyer of power for the national grid in Uganda. It is the purchaser of all independently generated power in the country that is fed into the national grid. Uganda Electricity Distribution Company Limited (UEDCL) is the owner of the electricity distribution network, which has been leased by UMEME Ltd. Uganda Electricity Generation Company Limited (UEGCL) is the owner of Kiira and Nalubaale Hydropower Stations in Jinja, which were concessioned to ESKOM The Electricity Disputes Tribunal is a mechanism through which any of the entities regulated by ERA or other persons can appeal the decisions of the Electricity Regulatory Authority. The Uganda Energy Credit Capitalisation Company (UECCC) is a GOU owned company set up for purposes of managing and administering the Uganda Energy Capitalisation Trust. The objectives of the UECCC are: to serve as a credit support institution and to promote private sector led renewable energy infrastructure development; to provide transaction advisory services to independent power producers; to introduce into the Ugandan financial market new and innovative financing modalities directed at reducing real or perceived risks faced by financial institutions participating in the renewable energy sector. The Uganda Investment Authority (UIA) is an agency set up to promote and facilitate private sector investment in Uganda. The agency serves to: provide information on investment opportunities; issue investment licenses; assist in securing licenses and secondary approvals for investors; help investors to implement their project ideas through assistance in locating relevant project support services; provide assistance in acquisition of industrial land; help to obtain work permits and special passes for investors and their expatriate staff; arrange contacts for potential investors; assist investors in seeking joint venture partners and funding and review and make policy recommendations to government about investment 35 The Rural Electrification Agency serves as the secretariat of the Rural Electrification Board 27 4 Regulatory Framework 4.1 Market Access (Conditions for Market Entry) 4.2 Privatisation, limitation and exclusion The Government of Uganda (GOU) began a privatization program in 2001 that has resulted in the sale of 128 public enterprises, with 30 remaining in State hands. Of these, 15 are scheduled for divestiture in the next three years. State-owned enterprises currently exist in the mining, hotel & hospitality, agro industry, housing, and transport sectors. In some of these sectors, the GOU is not directly involved in the running of the business but remains a shareholder and is open to competition from private investors in all of these sectors. In the electricity sector a concessional approach has been used to privatise the government owned electricity generation and distribution companies as well as off-grid isolated power stations. Businesses generally deem acquisition of land with a clean title as one of their biggest challenges. Foreign companies or individuals may not own land, but they may hold it under long-term lease. Foreigners must seek Cabinet approval through the UIA to lease land over 50 acres to be used for agricultural or animal production purposes. Uganda has not initiated any changes to allow foreign investors to purchase freehold property. 4.3 Economic Freedom Ugandas economy is fully liberalized and investment and marketing are allowed in all sectors of the economy 36 . Ugandas economic freedom score is 61.9 and it is ranked 8th out of 46 countries in the Sub- Saharan Africa region, and its overall score is above the world average 37 . Continued economic expansion has been facilitated by open-market policies related to global commerce. The financial sector is relatively well developed for the region and there is countrywide access to financial services. Despite some progress, institutional shortcomings continue to undermine prospects for dynamic long-term economic expansion. The trade weighted average tariff rate 38 is relatively high at 8.2%, and non-tariff barriers further constrain freedom to trade. However, Uganda has attempted to update various commercial laws to reduce administrative delays and the cost of conducting business. 4.4 Imports/ exports Uganda is a member of the World Trade Organization. Uganda is also a member of the East African Community (EAC) along with Kenya, Tanzania, Burundi, and Rwanda. While the EAC has passed protocols establishing a Customs Union and Common Market among the five countries, numerous exceptions, unchanged regulations, and bureaucratic inefficiencies still hamper the free movement of goods, capital, and people. Uganda, along with its counterparts in the EAC signed a Trade Investment Framework Agreement with the United States in July 2008. Uganda is a member of Common Market for Eastern and Southern Africa (COMESA), but not a participant in the COMESA Free Trade Area. Uganda has also negotiated bilateral tax treaties with several nations, including China and South Africa. The EAC signed an Economic Partnership Agreement with the EU in 2007. Uganda was among 26 countries which signed onto an initiative aimed at establishing an African free trade zone stretching from Cairo to Cape Town in October 2008. According to the initiative, the members of the EAC, COMESA, and the Southern African 36 Uganda Investment Authority 37 2012 Index of Economic Freedom (http://www.heritage.org/index/pdf/2012/countries/uganda.pdf) 38 Calculated as the ratio of total tariff revenue to total value of imports 28 Development Community will draft a roadmap for creating a single trading bloc that would speed economic integration and therefore help African economies compete in the global economy. The Free Zones Bill of 2002, which will authorize the creation of Free Trade Areas (FTA) within Uganda, is still awaiting final Cabinet approval. The Ugandan government is using a 19 million credit from the World Bank to create three FTAs: the Kampala Industrial and Business Park (open), Luzira Industrial Business Park and the Bweyogerere Industrial Estate. 4.5 Fiscal and financial incentives (taxation, FIT) Ugandas fiscal incentive package for both domestic and foreign investors provides generous capital recovery terms, particularly for medium and long-term investors whose projects entail significant plant and machinery costs and involve significant training. In Kampala, 50% of allowances for plants and machinery and 100% of training costs are deductible on a one-time basis from a company's income. A range of annual deductible and depreciation allowances also exist, resulting in investors normally paying substantially less than the 30% corporate tax rate in the early years of their investment. In order to promote export-oriented manufacturing investment, the GOU included several tax incentives in the 2008/2009 budget. These included a removal of the import duty on plant and machinery imports, as well as for schools, hotels, hospitals, agro-processors, and heavy truck transporters. The GOU also provides a 10-year tax holiday for investors engaged in export- oriented production and, if the investment is located more than 25km away from Kampala, for agro- processing investors. In the 2009/2010 budget some of these incentives were enhanced and others were introduced. Import duty on trucks with a carrying capacity of at least 5 tons was reduced from 25% to 10% and trucks with a minimum capacity of 20 tons now have no import duty. Taxes on spare industrial parts were also removed. Below are listed a number of investment incentives offered by the GOU 39 : a) Investment Capital Allowances These allow investors to deduct from their net income a certain percentage of their investment capital e.g.: Initial allowance on plant and machinery of 50-75%; the higher value for investments outside Kampala. This applies for the 1 st year only Start up cost spread over 4 years 25% p.a. Scientific research expenditure 100% Training expenditure 100% Mineral exploration expenditure 100% Initial allowance on hotel, hospitals and industrial buildings 20% Deductible annual allowances (depreciable assets) 20-40% Depreciation rate for hotels, industrial buildings and hospitals 5% b) Investors who register as investment traders are entitled to VAT refund on building materials for industrial/commercial buildings c) Duty and tax free import of plant and machinery d) Export promotion incentives and facilities Manufacturing under bond Duty exemption on plant and machinery and other inputs Stamp duty exemption Duty draw back a refund on all or part of any duty paid on materials and inputs imported to produce for export Withholding tax exemptions on plant and machinery, scholastic materials, human and animal drugs and raw materials Ten year tax holiday 39 Uganda Investment Authority 29 Duty remission scheme for exporters involved in value addition The Law Reform Commission has proposed draft legislation on investment incentives, but further steps have not been approved. The draft legislation would include an exemption on withholding tax on interest on external loans, repatriation of dividends to provide relief from double taxation, exemptions from duty on raw materials, and a waiver of export tax. Foreign investors should consult the UIA and carefully evaluate depreciation allowances by region and sub-sector prior to investing. The GOU will often work with foreign investors to provide additional incentives, including further tax reductions, government subsidies, or the provision of land. 4.6 Standards and quality The Uganda National Bureau of Standards (UNBS) is mandated to develop and promote standardisation, quality assurance, laboratory testing and metrology. UNBS carries out the following activities: Standards development: Carried out through Technical Committees which consists of representatives of consumers, traders, academicians, manufacturers, government and other stakeholders Product testing: Domestic and imported products are tested by UNBS laboratories for conformity to Uganda Standards and other specifications. Market surveillance to rid the market of dangerous, counterfeit and substandard products Verifying accuracy of weighing and measuring instruments used by traders and consumers in commercial transactions and calibrating measuring and testing equipment used in industry; Carrying out shipment inspection and conformity assessment for exports, imports and tender supplies; e.g. UNBS has in place an Import Inspection and Clearance Scheme. The scheme requires imported products be inspected for conformity to the relevant Ugandan Standard by UNBS before release onto the Ugandan market. Quality inspection is done by UNBS at the entry point during the customs verification exercise. Assisting the private sector, procurement agents, government and the general public in conformity assessment of goods by testing , measuring and inspection against standards and or specifications; Carrying out factory inspection to evaluate conformance with standards; and Liaison with national, regional and international standardisation and related bodies. 5 Starting a Business Entry Options and Barriers To start a business in Uganda, investors are required to 40 : 1) Register the company in Uganda The registration process includes the following: Reservation of a company name at the Office of the Registrar. Filling of incorporation forms i.e. statement of nominal capital, declaration of compliance with the requirements of the Companies Act (before a Commissioner of Oaths), particulars of directors and secretaries, consent to act as director of company, notice of situation of the registered office and postal address Registering the company at the Uganda Registration Services Bureau. As part of the registration companies are required to develop and submit a Memorandum and Articles of Association and pay registration fees and stamp duty. Registration fees depend on the amount of share capital. Applying to the Uganda Revenue Authority (URA) for a tax identification number (TIN) for each director and a VAT number. Applications can be done online. An inspector from URA inspects the business premises. Applying for pay-as-you-earn (PAYE) tax; to be paid by employees upon the company becoming operational but collected by the employer. 40 Uganda Investment Authority 30 Applying to the relevant local authority for a trading license. This a general business license required for all companies. A license fee is required whose amount varies depending on the nature of business. The licensing officer arranges an inspection of the premises and fills out an assessment form. Filing a form with the National Social Security Fund (NSSF). NSSF is a compulsory savings scheme that covers all employees in the private sector. Every employer must register the company with the NSSF when it has 5 or more employees. Making a company seal. 2) Apply for an investment license Foreign investors require a minimum of 78,200 in planned investment in order to secure an investment license from the Uganda Investment Authority. For local investors, the minimum planned investment requirement is 39,100. These amounts represent the value of fixed assets as determined from the investors business plans, which they are required to submit when applying for an investment license. Local investors may proceed with their investment without licensing from the UIA. However the license is mandatory for foreign investors as it legalizes their investment in Uganda. Traders do not require a license from UIA but must demonstrate operating capital of 78,200 before trading licenses and entry permits are issued by local authorities. Investors must have registered their companies before applying for an investment license 3) Secure necessary secondary clearances Certain sectors require other secondary licenses e.g. mining, forestry. Where required, UIA provides assistance for securing these licenses To save investors time, UIA has implemented a one stop shop that enables investors to obtain most licensing services at the UIA. UIA assists investors in identifying suitable land and work permits for expatriate staff. Representatives from URA, Department of Immigration and Ministry of Lands are housed at the UIA for this purpose. UIA also offers professional advice and facilitation services to access other government sister agencies. 6 The Financial Sector Uganda keeps open capital accounts, and Ugandan law imposes no restrictions on capital transfers in and out of Uganda. Investors can obtain foreign exchange and make transfers at commercial banks without approval from the Bank of Uganda (BOU, the Central Bank) in order to repatriate profits, dividends, and make payments for imports and services. The BOU prefers that investors make large transfers through the Central Bank itself in order to help it monitor and maintain the stability of the Ugandan shilling, though this is not a requirement. Investors have reported no problems with their ability to perform currency transactions. Overall, the banking industry is well capitalized and has no serious non-performing loan problems. Following a decade-long moratorium on new bank licenses, the BOU provided licenses to seven new institutions in 2007, bringing the number of banks in Uganda to 22. The total size of the commercial banking system has risen to 3.6 billion in 2009, up from 3 billion in 2008. Most banks are foreign owned, including major international institutions such as Citigroup, Barclays, Stanbic, and Standard Chartered. Interest rates for 12- month corporate loans generally run between 19% and 25%. Foreign investors can apply for loans from the local banking sector. Investors can also list their companies on the local stock exchange. A number of financial support initiatives exist to support investors in given sectors. UIA can advise potential investors on the how and where to access existing financing options for their planned investments 41 . 41 Uganda Investment Authority 31 7 Renewable Energy Sector 7.1 Overview Uganda is endowed with abundant energy resources which are fairly distributed throughout the country. These include hydro, biomass, solar, geothermal, peat and fossil fuels. The energy resource potential of the country includes an estimated 2000MW of hydro power, 200MW of mini-hydro, 450 MW of geothermal, 460 million tonnes of biomass standing stock with a sustainable annual yield of 50 million tons, 5.1 kWh/m2 of solar energy, and about 250 Mtoe 42 of peat (800MW). 7.2 Biomass Biomass contributes over 90% of the total energy consumed in the country and provides almost all the energy used to meet basic energy needs for cooking and water heating in rural areas, most urban households, institutions, and commercial buildings. Biomass is the main source of energy for rural industries. Limited availability of electricity and high prices of petroleum products, constitute barriers to a reduction in the demand for biomass. Trade in biomass especially charcoal is a large contributor to the rural economy. The per capita consumption of firewood in rural and urban areas is 680kg/yr and 240kg/yr respectively. Per capita charcoal consumption is 4kg and 120kg in rural and urban areas respectively. Current charcoal consumption in Uganda is estimated at 580,000 tons per annum the biomass equivalent is about 6 million tons of wood, based on the conversion efficiency of 10% for the charcoal kilns in use. According to the Uganda Bureau of Statistics (UBOS) population projection data, about 80% of the current population of reside in rural areas and predominantly use firewood; their biomass consumption can be estimated at 18 million tons. The combined annual biomass consumption (firewood and charcoal) is estimated at 24 million tons. Cottage industries account for about 20% of total biomass use, adding a further 5.5 million tons; bringing the total biomass demand to about 29.5 million tons countrywide. In addition to household and cottage industry applications, there is biomass for industrial applications i.e. tea processing, cement manufacture and agro-processing. Fuel wood is used by tea factories to provide thermal energy for withering and drying operations; where available it represents a significantly cheaper alternative to furnace oil. Fuel wood is sourced from tea estate plantations dedicated for this purpose or is purchased from farmers in the vicinity of the tea factory. Small holder tea factories often lack sufficient land to develop dedicated fuel wood plantations and therefore most of the fuel wood they source and use is unsustainable. Hima Cement factory is another example of biomass use for industrial applications; the factory is currently using biomass waste i.e. coffee husks to substitute 30% of its fuel consumption. With these trends likely to continue and grow, there is need to develop sustainable biomass resources. The 2007 MEMD, Report on The Renewable Energy Resource Information Development and Capacity Building Assessment in Uganda projected that the woody biomass demand and supply balance scenario was set to move into a deficit (4 million tonnes) by 2011 and one of acute deficit by 2016 (10.7 million tonnes). 7.3 Solar Energy (Thermal and PV) Uganda has an average daily insolation of 5-6 kWh/m2. It is estimated that about 1.1 MW of solar PV power is installed throughout the country. This includes both institutional and solar home systems with the former accounting for a greater portion of that installed capacity. The solar PV market in Uganda has steadily grown over the last 15 years with new players entering the market that include foreign investors. While ten years ago there were a handful of solar companies mainly 42 Million tonnes of oil equivalent 32 engaged in institutional solar PV installations, there are now over thirty companies involved in the solar business (both PV and solar thermal). The market is in a state of transition where different players are yet to find their optimum servicing levels within the market 43 . The prevailing market conditions in the PV sector are: ease of importing solar PV products, tax exemptions, and high margins. Institutional public procurements account for the biggest portion of the installed solar PV systems, usually project or donor supported through government. The applications are mainly in the following sectors: health, water, education and local government. An on-going World Bank funded rural electrification programme, Energy for Rural Transformation (ERT), is currently the main driver behind most of the public procurements. ERT provides support under a strategy that has been referred to as the Photovoltaic Targeted Market Approach (PVTMA) which provides solar PV subsidies and facilitates access to consumer finance. The solar home systems (SHS) market is one of the biggest areas for commercially driven solar PV business. The largest demand is for small PV systems ranging from 10 50W; annual SHS sales estimates are in the range of 12,000. Pico PV systems, 0.5-5W and costing 15-40 per system, are significantly more affordable and are becoming increasingly more popular. Solar PV systems under various schemes initiated by REA and other donor agencies energized around 5,587 households, 416 small commercials and 1,729 institutions. Field verification found that a significant portion of gridconnected consumers also utilize solar PV systems in their homes and businesses as backup. The solar thermal business in Uganda is relatively small in comparison to solar PV. Growth in this subsector is slow because of limited effort towards creating awareness, lack of a clear government policy to support growth and comparatively high initial investment costs. 7.4 Hydro The large-scale hydropower potential along the River Nile has been estimated at about 2,000 MW including six potential major hydropower sites: Bujagali 250 MW, Kalagala 450 MW, Karuma (Kamdini) 150 MW, Ayago North 300 MW, Ayago South 250 MW and Murchison Falls 600 MW. Bujagali and Karuma sites have been significantly studied and are being developed on a Public Private Partnership (PPP) basis to generate electricity in the medium term. More than 60 mini hydropower sites with a total potential of about 210 MW have been identified through different studies in Uganda. Some of the sites can be developed for isolated grids; others as energy supply to the grid and the reminder of the sites were assessed to be less relevant to the energy supply for environmental and power market reasons. Hydro resources in Uganda are the most abundant and well documented renewable energy resource (see Figure 6 below). With changing weather patterns detailed hydrological assessments are required to assess the extent to which seasonal changes in flow rates would affect the performance of the proposed plants. 43 Target Market Analysis: Ugandas Solar Energy Market (GIZ 2009) 33 Figure 6: Maps showing hydro sites in Uganda and their status 34 7.5 Wind The Karamoja region (north east border with Kenya) is widely considered as one of windiest locations in Uganda although detailed studies have not been undertaken. The Ministry of Energy plans to undertake a reconnaissance survey of metrological stations in Karamoja to assess the best sites to install equipment to undertake wind measurements. 7.6 Geothermal Geothermal investigations have been focused on three areas namely Katwe, Buranga and Kibiro all in west Uganda. The three were chosen for study because of their volcanic and tectonic features that indicate a powerful heat source and high permeability. They have all been ranked as potential targets for geothermal development. Their total geothermal energy potential is estimated at 450 MW. Other areas are located within or on the outskirts of the rift valley in southwest, west, north and northeast Uganda as indicated in Figure 7 below. Figure 7: Geothermal sites The Uganda government funded a detailed geothermal resource assessment in the June 2011-2012 financial year. These were undertaken by the Geological Survey and Mines Department of the Ministry of Energy. During this survey a 4 th site, Panyimur in Nebbi district, was also identified as promising. Uganda currently has no Geothermal Policy and USAID has offered to support its development. Currently geothermal exploration is addressed using the Mining Act which grants a 3 year exploration license to investors. Currently all sites apart from the new Panyimur site are licensed to investors for exploration. The conditions of the license require quarterly reporting from investors to show progress. 35 7.7 Municipal Waste Kampalas Mpererwe land fill has been in operation since 1996 and 60% of Kampalas waste is dumped at this land fill. The volume of the land fill is estimated at 1,256,000m 3 . Annual waste deposited in the land fill has grown from about 50,000tons/year in 1996 to 240,000tons/year in 2011 44 . The composition of Kampalas waste is broken down as follows: vegetable matter 73.8%; paper 5.4%; plastic 1.6%; metal 3.1%; glass 0.9%; street debris 5.5%; tree cuttings 8.0% and saw dust 1.7%. Waste separation regimes and recycling activities are limited although there is an ongoing program to promote this that is supported by the Belgian Technical Cooperation. In 2011, the Kampala City Council (KCC) commissioned the, Design of Landfill Gas Recovery and Utilization Project. The study estimates electricity generation potential of about 3MW and an average CO 2 emission reduction potential of 40,000tons per year for 9 years. KCC plans to submit a tender for bids to develop the land fill project later this year and is also investigating waste to energy options i.e. energy recovery through waste incineration. 44 Design of Landfill Gas Recovery and Utilization Project (Kampala City Council 2011) 36 7.8 Investment Potential 7.9 Outlook Ugandas energy sector is open for business and the country has abundant renewable energy sources which are largely untapped. Uganda has one of the fastest growing economies and highest population growth rates in the region and the energy demand for households, businesses, institutions and industries is largely unfulfilled; electrification rates are at 5.91%, there is a power deficit of 130MW, biomass represents over 90% of total energy consumption and the biomass energy technologies used are highly inefficient. The private sector is encouraged to invest in electricity generation and distribution and trade in energy products and services. However, Ugandas renewable energy market is a virgin market and requires patient capital, a long-term outlook and a willingness to do lobbing and advocacy to address institutional and policy barriers. Lack of detailed renewable energy resource data presents both a challenge and opportunity; a number of studies have been done on hydro resources but little or no resource availability information is available for other renewable energy resources. Energy policy and regulation in Uganda allows for investors, on a 1 st come 1 st serve basis, to identify sites, apply for permits to collect data for detailed feasibility studies and develop projects. 7.10 Areas of Opportunity Opportunities in the sector can be broken up into grid connected renewables, electricity distribution and energy products and services 7.11 Grid Connected Renewables Ugandas peak electricity demand is expected to grow from the current 540MW to between 1,873 2,722MW in 2030. To encourage investment in the sector the government established the renewable energy feed in tariff in 2007. It has been reviewed once since then; the current feed in tariffs and guidelines (Phase II) are available on the Electricity Regulatory Authority website (http://www.era.or.ug/FeedInTariffs.php). These are currently undergoing review. The feed in tariffs focus on renewable energy projects in the range of 0.5-20MW. The tariff will be paid for a guaranteed payment period of 20 years, with O&M costs adjusted on an annual basis for inflation. The tariff adjustment formula is defined in the tariff guidelines and is based on the core producer price index for the United States as published by the Bureau of Labour Statistics. Power purchase agreements are done with the bulk buyer, UETCL, and approved by the regulator, ERA. The power purchase agreements (PPA) have a standard template and PPA negotiations are relatively fast if the project developer is amenable to the stated tariffs. Although, the tariffs are non-negotiable, other incentives can be negotiated with the ERA e.g. some project developers request for higher tariffs in the earlier years and lower tariffs later so as to enable the repay their debt. Other incentives that can bring down the initial investment costs e.g. tax exemptions on equipment can also be negotiated. With regard to power output frequencies and voltages, details are available in the grid code. Output voltages are 11kV, 33kV and 132kV 10%, output frequency is 50Hz 1%. For solar and wind generation systems where generation fluctuates, developers are required to eliminate harmonics. Power evacuation for generation projects in the range of 0.5-20MW can represent a challenge. The power transmission company is not obligated to evacuate power from generation plants with capacities below 20MW; however the rural electrification agency has resources to develop transmission lines to evacuate 37 power from these plants. Before a PPA can be concluded the commitment from REA to develop the transmission network needs to be presented. It is important to note that the maintenance of this transmission network is the responsibility of the electricity network distribution concessionaire. There are currently no feed-in-tariffs for projects above 20MW and the PPAs and negotiations for these kinds of projects are significantly different. For these projects a detailed feasibility study is required for the negotiation of the tariffs. For these projects UETCL can only negotiate on tariffs up to the bulk supply tariff, which is calculated by ERA and varies depending on a number of factors e.g. generation mix, O&M. The current bulk supply tariff is 8.3US. For tariffs above this subsidies are required from the government and therefore an implementation/support agreement between the government and the project developer is required. Sovereign guarantees could be negotiated for projects of this scale. UETCL is also obliged to provide the transmission infrastructure to evacuate energy from energy projects above 20MW and since they are directly responsible for this infrastructure, they can provide network guarantees. However, it is important to note that the 132kV infrastructure is still underdeveloped and the transmission infrastructure development plan and timelines needs to be considered when selecting sites and planning their development. Investment opportunities i.e. small hydropower sites for which no exclusive permits are in force, and which are available are listed on the ERA website (http://www.era.or.ug/AvailableProject.php). Interested developers are required to lodge a notice of intended application with the Electricity Regulatory Authority. Also listed are companies who have permits to conduct feasibility studies. For investors seeking local partners who already have permits or generation and sale licenses, although the ERA does not offer any match making services, they do have a database of these project developers. Permit and license holders at an early stage of project development may also be seeking for technical assistance (design, resource assessment, feasibility studies, and equipment), equity partners or financing. 7.12 Electricity Distribution Of the total grid and isolated minigird electric consumers, more than half (56.32%) are located within Kampala and Wakiso Districts. This indicates the level of electric infrastructure investment within these two cities, while a majority of the population outside of these Districts suffers from a relatively low level of access on average 2.80%. In 24 districts, electricity access is essentially zero; no form of gridbased electricity exists leaving about 800,000 households without access to electric service. The Indicative Rural Electrification Master Plan (IREMP) of 2009 illustrates that there are more than 500,000 connections that could in some way or another be supplied by means of an electricity system (i.e., not just individual, scattered households or point loads). It further demonstrates that in nearly all cases, it is more appropriate to supply these potential connections from the grid as opposed to offgrid and minigrid solutions because even though the initial capital layout is not always lower, the lifecycle costs and therefore the affordability hurdle are lower 45 . The Rural Electrification Agency has shifted to direct investment in rural electrification construction as GOU owned assets. Therefore, through ERT and with funding from GOU and some of the donor agencies (SIDA, JICA, NORAD, etc), a variety of grid extension projects have been executed under REA direct management. Upon completion of these extension projects, the assets are given to the distribution licensees, or new licensees are sought, and the ownership retained in the name of the GOU. In addition to its license issued by ERA, the licensees execute lease agreements with REA which obligates them to pay annual fees. Currently, three energy service providers operate gridtied distribution systems through a lease with REA. 45 The Indicative Rural Electrification Master Plan (Rural Electrification Agency, 2009) 38 These leases are typically signed between the energy service provider (ESP) and the REB Chairman representing the Government of Uganda. In the case of the lease of one of the electricity distribution concessionaires the lease dictates a system rental amount of 3,518/month, in addition to stipulating key terms of service such as providing quarterly report to the REB, maintaining the system in good working order, obeying proper laws (such as the Grid Code), and creating an expansion plan for the primary distribution system for review of the REB one year after service is commenced. The lease additionally specifies the term and termination processes, required tax and insurance standards, assumptions of liability and dispute resolution modalities, among other items. However, in regard to RE acceleration, no specific connection targets are mentioned. While REA provides the initial financing for project development, it is unlikely that ESPs can finance system backfill (densification of consumer connections in existing distribution), maintenance and upgrades. The 2011 Uganda Accelerated Rural Electrification Project provided a few recommendations which, if effected could result in investment opportunities in electricity distribution. These include 46 : Geographically defining 12 new rural service territories covering the entire country. Each with approximately 4,000 original customers, providing a sufficient revenue base to render each a commercially viable electric utility. Apart from the 12 new service territories, the major urbanized region of Kampala, Jinja and Entebbe, and the majority of the territory and consumers currently served by Umeme are included in a separate service territory. From a planning standpoint, electric distribution construction planning is performed on the basis of long term utility business plans, including periodic construction plans under a revised procedure for distribution project design for the purpose of ordering investments and financing sequentially to achieve total coverage of each area. For the purpose of awarding the 12 ruralarea distribution concessions, several options are considered. The focal issue is to realign Umemes concession to pare off the more rural areas and by so doing render the rural territories more viable by making them larger. These are: a) A single concession for the entire national system and negotiate with Umeme b) A single concession which is competitively bid c) Multiple rural concessions, each to be competitively bid d) Multiple rural concessions, each to be assigned to existing licensees e) Multiple rural concessions, each to be served by an electric cooperative f) A combination of the last three options The proposed service territories and shown in Figure 8 below. 46 Uganda Accelerated Rural Electrification Project Report (REA 2011) 39 40 Figure 8: Proposed Service Territories 41 7.13 Energy Products and Services Large scale demand for charcoal and fuel wood by households, institutions, cottage industry and large industry presents interesting opportunities for investors. Charcoal - A charcoal survey undertaken in 2004 47 indicated the total consumption of charcoal in Kampala at that time was estimated at 300,000 tonnes/year; equivalent to a 50% increase over 10 years. The five most important districts supplying Kampala with charcoal were Luweero (25.3 %), Nakasongola (14.5 %), Kiboga (13.6 %), Mpigi (10.8 %) and Masindi (6.9 %). The current price of charcoal in Kampala is 25US$ for a 50-60kg bag. In Renewable Energy Sector Investment Plan for Uganda, MEMD also estimates the level of charcoal demand for industrial applications (i.e. cement production in Hima and Tororo and iron and steel works in Jinja, Iganga and Kigezi) at about 990,000tons of charcoal a year. Fuel wood - The per capita consumption of firewood is estimated at 680kg/yr and 240kg/yr, in rural and urban areas. In addition to households there is significant fuel wood demand from schools and institutions for cooking, the tea industry for provide thermal energy for withering and drying operations, and energy intensive industries such as brick making, lime burning, baking, fish smoking and tobacco curing. Developing sustainable commercial tree plantations to meet this demand therefore presents a viable investment opportunity. Commercial tree plantations require large areas of land capable of supporting good tree growth. To maximize potential, the land must be located near to the main markets or close to the main processing facilities; and to benefit from economies of scale, the core plantation areas should be as contiguous as possible. In Uganda there are large areas of public and private land well suited for tree plantations. It has been government policy for many years to allocate tree planting permits (usually for 25 years and renewable based on performance) in selected Central Forest Reserves (CFRs) to private investors for plantation development. Central Forest Reserves (CFRs) in Uganda fall in two main categories namely those for production and those for protection. Production forests which include savannah, bush land and grassland areas were gazetted for supply of forest products and future development of industrial plantations. The protection forests include all the tropical high forests, savannah woodlands and/or grasslands that protect watersheds and water catchments, biodiversity, ecosystems and landscapes that are prone to degradation under uncontrolled human use. Although central forest reserves are ideal for establishment of commercial tree plantations, there has been a move recently more towards private land due to uncertainties over government policies, especially relating to permit conditions and poor support for (often illegal) encroachment 48 . Below is a map showing central forest reserve categories and locations and another showing sivicultural zones in Uganda and those suitable for commercial forestry. Due to the scale of agricultural activities; Uganda also has an abundance of biomass waste. This waste can be aggregated and sold/used directly for provision of thermal energy or it can be used to make briquettes. Table 6 below gives an indication of the availability of biomass waste from different agricultural products. 47 A Study on Charcoal Supply in Kampala (MEMD/GIZ 2004) 48 A Ugandan Model for Engaging the Private Sector in Commercial Tree Growing (Paul A. Jacovelli) 42 43 Figure 9: Central Forest Reserve categories in Uganda (National Forest Authority) and sivicultural classification map of Uganda showing are suitability for commercial forestry (Sawlog Production Grant Scheme Tree Planting Guidelines for Uganda) 44 Table 6: Agricultural residue potential in Uganda 49 Agricultural Crops Cultivated Area (ha) Production (tons/year) Residues (tons/year) Theoretical residue potential for energy production (tons/year) Sugar cane 360,000 222,866 2,547,040 2,547,040 Banana 1,512,001 9,011,997 3,604,799 1,081,440 Maize 571,002 913,009 913,009 365,204 Sorghum 266,001 399,002 478,802 143,641 Beans 600,003 390,002 273,001 81,900 Coffee 181,470 145,176 88,557 Groundnuts 199,999 144,000 144,000 66,240 Rice 55,226 77,461 108,445 32,534 Soya beans 71,997 78,998 55,299 16,590 Pigeon peas 69,999 57,999 34,799 10,440 Cow peas 53,972 44,639 26,783 8,035 Tea 29,236 12,692 3,808 Field peas 28,000 15,999 9,599 2,880 Tobacco 22,837 6,851 2,055 Cassava 331,729 2,224,000 667,200 - Finger millet 394,995 632,000 695,200 - Wheat 5,000 9,000 10,800 - Sun-flower 51,183 43,630 22,251 - Sweet potatoes 477,998 2,222,999 666,900 - Irish Potatoes 49,998 402,000 160,800 - Total 5,091,103 17,123,144 10,583,448 4,450,363 Awareness and uptake of efficient biomass technologies is still low. Considering that biomass represents 93% of total energy consumption, opportunities exist for introduction and dissemination of such technologies; these include biomass fired boilers/dual fuel boilers, biomass gasifiers, energy efficient household and institutional wood fuel stoves, efficient charcoal production kilns/technologies and improved kilns and ovens. 8 Prospects of Future Market Development 8.1 Power Sector Investment Plan The Uganda Power Sector Investment Plan (PSIP) was concluded in 2011 and is aimed at: Enabling the provision of adequate and reliable power while anticipating the demand based on the countrys vision for economic development; Developing a plan that would enable a shift from a project by project approach, to a sector-wide framework encompassing programmatic funding in a coordinated harmonized manner; and Translating the strategic sector plans into a series of actionable projects over a period of up to 20 years. The Demand Forecast For the base case total energy sales are projected to grow on average by 6.8% per year from 2008 to 2030. This represents a growth in energy sales from 1 800GWh in 2008 to 7 679GWh in 2030. For the high case, the energy sales are forecast to grow to 13 101GWh by 2030 which present an average annual growth rate of 9.2%. For the low case, the energy sales are forecast to grow to 3 873GWh by 2030 which present an average annual growth rate of 3.8%. For the Vision 2035, the energy sales are forecast to grow to 17 877GWh by 2030 which present an average annual growth rate of 10.8%. 49 The Uganda Alternative Energy Resource Assessment and Utilization Study (2002) 45 For the base case the peak demand is forecast to grow from 528MW in 2008 to 1,873MW in 2030 i.e. average annual growth rate of 5.9%. For the high case, the peak demand is forecast to grow to 2,722MW by 2030; an average annual growth rate of 7.9%. For the low case, the peak demand is forecast to grow to 938MW by 2030; an average annual growth rate of 3.0%. For the Vision 2035 case, the peak demand is forecast to grow to 4,116MW by 2030; an average annual growth rate of 10.0% 50 . Generation Plan The least cost future capacity to supply the growing demand is predominantly hydro generation capacity. The base case generation least cost plan is presented in Figure 10 and Table 7 below. Table 7: Energy Generation Projections 51 Plant name Nominal Capacity (MW) Energy (GWh) Earliest year on Power Hydro Existing Misc plants 15 Nalubaale 180 767 Kira 1115 200 747 Bujagali 15 250 1970 2011 Small hydro (committed) 50 2011 S/T 695 3,485 Thermal Existing Kakira 17 112 Namanve 50 329 Invespro HFO IPP 50 329 2010 Electromax IPP 10 66 2009 S/T 127 834 Total Existing Supply 822 4,319 Hydro Future Karuma high 700 5512 2018 Murchison Falls high 750 5904 2019 Isimba 100 788 2016 Ayago 550 4336 2019 Small hydro candidates 37 2016 S/T 2137 16,540 Thermal Future Kampala steam 56 392 2016 Tullow steam 53 371 2016 Tullow GT 57 399 2016 Tullow CCGT 185 1296 2016 Tullow diesel 10 70 2016 Geothermal 33 231 2016 S/T 394 2,761 Total Future Options 2,531 19,301 Total Future Supply 3,353 23,620 50 Uganda Power Sector Investment Plan 2011 51 Eastern Africa Power Pool (EAPP) and East African Community (EAC) Regional Power System Master Plan and Grid Code Study 46 The following are key highlights of the generation plan: In 2012, with the introduction of the first three units at Bujagali, it is expected that the Base Case energy demand can be supplied. The contribution of thermal plants is expected to remain high until 2017. By 2015 all the existing capacity is expected to be utilised to the maximum and new capacity is required to supply some of the growing demand. Due to the lead times required for large hydro developments, new small hydro stations are expected provide the capacity (60MW) required. The Isimba hydro project is expected to come online by 2017 to meet new demand. A feasibility study being conducted to evaluate the feasibility of developing Karuma as a 600-750MW plant; 2018 is the earliest estimated date of commissioning With the introduction of the Karuma plant the reserve margin is anticipated to increase to above 80% and remains above 25% until 2024, With the introduction of the new hydro projects the contribution from thermal plants is expected to reduce significantly from 2018 In 2022 new base load capacity is required to serve the base case energy demand forecast. The least cost option is expected to be geothermal The Ayago hydro plant is expected to be introduced in 2025 Figure 10: Base case generation capacity extension plan 52 52 Uganda Power Sector Investment Plan 2011 47 Transmission Plan The least cost transmission development plan by 2025 resulting from the analysis is presented in Figure 5. There are no committed or candidate projects beyond the integration of Ayago Power Station in 2025. Figure 11: Transmission Network Summary 2025 8.2 The Energy for Rural Transformation Project 53 The purpose of the ERT program is to develop Ugandas energy and information/communication technologies (ICT) sectors, so that they make a significant contribution to bringing about rural transformation, i.e., these sectors facilitate a significant improvement in the productivity of enterprises as well as the quality of life of households. The objectives of Phase I were to put in place a functioning, conducive environment and related capacity for commercially-oriented, sustainable service delivery of rural/renewable energy and ICTs. These were largely achieved. Phase 2 (ERT II) was declared effective in November of 2009, to run for a period of 4 years. It will accelerate investments and increase the regional coverage by shifting from the Phase I case-by-case approach to processing sub-projects through the institutional framework. The project has the following components: 53 Energy for Rural Transformation ERT II Project Operational Manual (MEMD. December 2009) 48 Rural Energy Infrastructure (41.8 million): This includes: rural electrification (grid extension and independent grids); renewable energy power generation; solar PV systems excluding health, education, water and agriculture sectors; energy efficiency (electricity and other energy). o REA will be responsible for grid extensions, independent grids, Solar PV systems, support of renewable energy power generation projects, and capacity building o To facilitate access to local commercial finance, ERT II will operationalize the Credit Support Facility (CSF), which was set up in ERT I, but has not yet started functioning. The CSF will provide credit enhancement products aimed at encouraging the participation of local financial institutions. These will include a standby liquidity option that effectively extends the loan tenor to more closely match the needs of private investors. Also included will be a partial risk guarantee to address the perceived start-up risks of mini-hydro and other eligible investments. CSF will also operate a refinance facility similar to the ERT I facility aimed at supporting solar PV transactions. Information Communications Technologies (7.1 million): This focuses on extending access to ICT services. The investments to be financed are: (i) last mile Internet broadband access extension to rural areas with a focus on the Northern region; (ii) new community information centres (CICs), including cell- phone charging facilities, for underserved rural areas and rechargeable lamps for the public in areas where grid power is not available.; (iii) cell-phone charging facilities for CICs installed in ERT I; and (iv) equipment for computer labs to schools and computer equipment for health facilities and subsidized Internet access. Energy Development, Cross Sectoral Links, Impact Monitoring (23.7 million): This includes health, education, water, agriculture and local government sectors. o Establishment of a Project Coordination Unit in MEMD which will have the overall responsibility of coordinating, guiding and supporting and monitoring the different activities of the Implementing Agencies o ERT II will selectively support activities that are considered to be cornerstones of the Energy Efficiency Strategy for Uganda. These may include: energy efficient street lights, energy efficiency in large industrial/commercial facilities, promotion of energy efficient appliances, energy efficiency in SMEs, and solar water heaters. o Increasing investments in modern energy services in rural health centres for improved health services delivery. This will be through use of solar PV systems or connection to a reliable grid. Twenty four (24) districts will be covered in ERT II. o Assist Ministry of Water and Environment in improving the water supply services; in particular for the rural growth centres and small towns mechanized systems, by providing the least cost energy solutions to the communities where water schemes have been or are to be installed. ERT II shall target 16 20 water supply schemes. o Improve the quality of education in 40 districts by providing access to energy and ICT to post- primary education institutions including staff houses. o Support the Plan for Modernization of Agriculture process of transforming agriculture from largely subsistence to commercial through the use of energy/ICT in agricultural activities. 8.3 Rural Electrification Plan The Indicative Rural Electrification Master Plan (IREMP) report represents an indicative plan for rural electrification in Uganda. The Rural Electrification Strategy & Plan foresees an increase in the rural electrification rate to about 10%, i.e. an additional approximately 400 000 rural connections; 250 000 on-grid and 100 000 off-grid connections, phased over a ten-year period. The recommended Indicative Rural Electrification Master Plan therefore achieves the total connection targets mostly via the grid. There are specific cases where off-grid solutions are recommended, for example for the electrification of District Head Quarters which will not be reached by the grid soon. 49 8.4 PV Targeted Market Approach (PVTMA) PVTMA was designed to provide a targeted solar PV system buy down subsidy, wherein eligible solar PV providers or regulated micro-finance institutions (MFIs) would be eligible for a targeted subsidy of US$ 5.50/Wp for systems up to 50W. Additionally, a targeted subsidy of US$ 4.00/Wp is available for commercial or institutional PV systems up to 500 Wp. These subsidies are be managed by REA, 70% of the subsidy is paid to the PV dealer or MFI when the solar PV installation was made, with the remaining 30% paid after an independent auditor had verified that the system was installed according to contract specifications. Through the PVTMA framework, regulated MFIs (those registered with the Bank of Uganda) through the Uganda Energy Credit Capitalization Company (UECCC), and the Savings and Credit Cooperatives (SACCOs) regulated through the Microfinance Support Centre 54 are authorized to receive credit and liquidity support in order to furnish solar PV loans to individual clients and cooperative members. Finally, a PV Supervisory Group is to be established to coordinate the activities of each of these players towards the overall goal of installing 20,000 PV systems under ERT II. GIZ Promotion of Renewable Energy and Energy Efficiency Programme (PREEEP) and Solar Market Development programs were intended to work in parallel with the GOU/REA/PSFU coordinated solar PV development programs. Similar to PVTMA, these programs provide assistance to solar PV dealers to qualify for PV subsidies, as well as to provide support to improve marketing, commercial and technical skills. In addition, the programs engage microfinance institutions to establish further linkages with PV dealers and available subsidy schemes. 8.5 Uganda Energy Credit Capitalization Company The main roles of the UECCC are to pool resources to contribute financing requirements of the renewable energy sector and provide a framework for structuring public private partnerships. UECCC are also offering technical assistance to financial institutions e.g. building the capacity of local financial institutions to appraise renewable energy projects seeking finance and assisting interested FIs to design adaptable consumer financing packages for solar PV systems. UECCC are currently offering credit enhancement instruments to enable projects reach financial closure e.g.: Standby liquidity option Local financial institutions (FIs) do not typically offer loans beyond 5 years; by placing a cash reserve at the bank that it could disburse to the project developer upon the completion, UECCC enables the financing institution to extend the tenure of their loan and the project developer to get long term financing. Partial risk guarantee A cost overrun insurance facility available during the construction phase that allows renewable energy project developers to access an additional financing for up-to 15% of the project cost For projects that are in the early stages of the project development cycle, UECCC is the process of developing and capitalizing additional credit support instruments such as: Early stage transaction advisory services to project developers on project activities such as business and financial planning, financial structuring and institutional liaison Bridge financing To cover interest payments that accrue before a project starts generating cash flows. These are repayable after project commissioning. 54 A government financial support centre primarily for SACCOs 50 Subordinated Debt Finance To address the shortfall in project developer equity to meet the levels required by debt provider Interest rate buy down To address the currently high interest rates that are not in line with the requirements of project financing. Power purchase liquidity guarantee Short term payment guarantees to cover delays in payment from the bulk buyer UETCL Both local and international investors can access UECCCs instruments; although international players have to be locally registered. UECCC have mobilized 1.17 million in grant financing from KfW to provide early stage advisory services to about 10 project developers 55 . These services include: full pre-feasibility study, technical evaluation of milestone project studies, business plan preparation, financial/economic model structuring, risk assessment, market assessment, marketing of projects to local participation financial institutions (Barclays, Stanbic and Standard Chartered banks) and potential investors and valuing of projects for sale. The beneficiaries targeted for these services are private small scale renewable energy project developers. Project developers applying for these services must be owners of the project (i.e. should hold an ERA issued permit), must have performed a sufficient level of technical work on the project, must have experience in developing capital investment projects and sufficient technical/business knowledge in project management in the energy sector. 8.6 Regional Technical Assistance Program In April 2011, the French Development Agency (AFD) made available long term concessional financing, in form of an 30 million Environmental Credit Line to assist the banking sector to finance renewable energy and energy efficiency projects in Kenya, Uganda and Tanzania. The credit line is being made available to commercial banks in each participating country. The Regional Technical Assistance Program 56 operated by the Kenya Association of Manufacturer provides technical support to project sponsors (pre-feasibility, feasibility study or technical support) and makes recommendations to the partner banks in order to mitigate the technical risk. RTAP activities are intended to complement the AFD credit lines to finance eligible RE and EE projects via local partner banks. 8.7 Promotion of the Sustainable Supply of Biomass Energy The Sawlog Production Grant Scheme (SPGS) is a European Union funded programme that aims to promote private investment in timber production in Uganda. The SPGS started in 2003 and has subsidized over 10,000 hectares of commercial plantations throughout the country: this includes small community-based, tree planting associations up to large-scale commercial operations. SPGS sparked an enormous interest in tree planting in Uganda. From what was always seen as the States business, commercial tree planting is increasingly being taken seriously by both large and small scale growers from the private sector. The SPGS provides two of the key factors needed for plantation establishment, namely, financial and technical support. The financial assistance comes in the form of a direct subsidy (or grant) paid in the first two years after planting. The total grant is US$ 330 per ha but it is only paid where planters meet the standards as laid out in the contracts that have to be first agreed. The main standards are: sound species 55 A maximum support of 150,000 per project 56 http://www.kam.co.ke/index.php/kam-services/energy-services/regional-techical-assistance-programme 51 choice, using only improved seed, having at least 80% survival after planting and ensuring weeding and protection operations are carried out. In establishing the commercial energy plantations, a similar model as outlined below is proposed by the MEMD: Prospective planter applies for support by providing a business plan and proof of land ownership. Successful applicant signs a contract with GoU, stating size of area to be planted in a set time period and the expected plantation management standards. Planter establishes plantation using own funds, then reports progress to MEMD, which then does a site visit to check for compliance with standards, and advises accordingly. If the required standards have been met, payment is effected 52 9 Planning your investment 9.1 Must-knows and must-haves Must know Must have Where to go To do business in Uganda one needs to register a company in Uganda Company name Incorporation forms Memorandum and Articles of Association Tax identification number Trading license Company seal Uganda Investment Authority (1-stop shop to obtain most licensing services) Contact details: The Investment Centre, TWED Plaza, Plot 22 Lumumba Avenue P. O. Box 7418, Kampala, Uganda Tel: +256 414 301 000 An investment license is mandatory for foreign investors. Local investors may proceed without licensing Business plan showing a minimum of 78,200 in planned investment (fixed assets) for foreign investors and 39,100 for local investors Traders do not require a license but must demonstrate operating capital of US$100,000 to obtain trading licenses and entry permits Foreign investors are not allowed to own land in Uganda, but are allowed to lease. UIA, through its land data bank and/or district focal point officers can help in identifying suitable land and linking the investor with the owner of the land. Size and general location of land requirements for the project Preliminary renewable energy resource data is available at the Ministry of Energy and Minerals Development. Investment opportunities i.e. small hydropower sites for which no exclusive permits are in force, and which are available are listed on the ERA website (http://www.era.or.ug/AvailableProject.php) Ministry of Energy & Mineral Development, Contact Details: 3 rd floor Amber House, Kampala Road P. O. Box 7270, Kampala, Uganda Tel: +256 414 257 863 A study permit is required to do necessary feasibility studies on an identified site. The permit gives the developer exclusivity to develop the site. The project developer is required to submit a notice of intended application. The notice shall be published in the Gazette and a Information on the financial and legal status and the technical and industrial competence and experience ; Project description and time plan for execution Review of the use of land for the project and the relation of the project to local authorities; Review of public and private measures necessary to Electricity Regulatory Authority Contact details: Plot 5 Shimoni Road, Nakasero P. O. Box 10332, Kampala, Uganda Tel: +256 414341852 53 Must know Must have Where to go national newspaper and directly affected parties or public agencies invited to make comments carry out the project; Information relating to permissions required from public authorities; A description of the impact of the project on electricity supply, socioeconomics, cultural heritage, the environment, natural resources and wildlife. A license is required for the establishment of a project Legal and financial status; Technical and economic description of the project; Description of how the project fits in with the existing and planned power supply system; Planned time of commencement and completion of the construction of the project; View of the projects adaption to the landscape, including necessary maps and drawings; Impact of the project on public interests and possible mitigation; Results of assessments, including environmental impact assessments, Impacts of the project on private interests, including the interests of affected landowners and holders of other rights. Power purchase agreements are done with the bulk buyer, UETCL, and approved by the regulator, ERA. Power purchase agreement template available at http://www.era.or.ug/Pdf/Pro%20forma%20PPA.pdf. For projects between 0.5 20MW, tariffs are based on the approved Uganda Renewable Energy Feed-in Tariff. These are currently under review. No guarantees are provided for projects in the range of 0.5-20MW. Projects above 20MW are negotiated under a separate framework. UETCL is not obligated to evacuate power from generation plants with capacities below 20MW; however REA has resources to develop transmission lines to evacuate power from these plants. Before a PPA can be concluded the commitment from REA to develop the transmission network needs to be presented. For tariffs above the bulk supply tariff, subsidies are required and an implementation/support agreement is therefore between the government and the project developer is required. Uganda Electricity Transmission Company Ltd. Contact details: Plot 10, Hannington Road, P. O. Box 7625, Kampala, Uganda +256 414 233 433 Rural Electrification Authority Contact details: Plot 1 Pilkington Road 10 th floor, Workers House P. O. Box 7317 54 Must know Must have Where to go Kampala, Uganda Tel: +256 312 264095 55 10 References Bank of Uganda, Uganda Bureau of Statistics and Uganda Investment Authority, 2010, Private Sector Investment Survey, http://www.bou.or.ug/export/sites/default/bou/bou- downloads/publications/PrivateSectorCapital/PSIS/2010/All/Private_Sector_Investment_Survey_Report_2010.pdf Eastern Africa Power Pool and East African Community, 2011, Regional Power System Master Plan and Grid Code Study, http://www.eac.int/energy/index.php Electricity Regulatory Authority, 2011, Uganda Renewable Energy Feed-in Tariff (REFIT) Phase 2 Approved Guidelines for 2011-2012, http://www.era.or.ug/Pdf/Approved_Uganda%20REFIT%20Guidelines%20V4%20(2).pdf GIZ, 2009, Target Market Analysis: Ugandas Solar Energy Market, http://www.gtz.de/de/dokumente/gtz2010- en-targetmarketanalysis-solar-uganda.pdf Inter-Agency Working Group and the Office of the Prime Minister, 2012, Uganda Humanitarian Profile, http://reliefweb.int/sites/reliefweb.int/files/resources/uganda_humanitarian_profile__2012.pdf Kampala City Council, 2011, Design of Landfill Gas Recovery and Utilization Project Ministry of Energy and Mineral Development, 2002, Uganda Alternative Energy Resource Assessment and Utilization Study Ministry of Energy and Mineral Development, 2011, Uganda Power Sector Investment Plan Ministry of Energy and Mineral Development, 2009, Energy for Rural Transformation ERT II Project Operational Manual Ministry of Energy and Mineral Development and GIZ, 2004, A Study on Charcoal Supply in Kampala, http://www.ecosilva.de/HOMEPAGE/CharcoalInflowSurvey.pdf NRECA International, Ltd., 2011, Uganda Accelerated Rural Electrification Project Report Paul A. Jacovelli, 2010, A Ugandan Model for Engaging the Private Sector in Commercial Tree Growing, http://www.sawlog.ug/downloads/Papers/Jacovelli-CFC-2010-paper-final-full.pdf Paul A. Jacovelli , 2009, Sawlog Production Grant Scheme Tree Planting Guidelines for Uganda, http://www.sawlog.ug/index.php?option=com_content&view=article&id=150:spgs-hosts&catid=1:latest-news Rural Electrification Agency, 2009, Indicative Rural Electrification Master Plan Uganda Bureau of Statistics, 2011, Statistical Abstract, http://www.ubos.org/index.php?st=pagerelations2&id=31&p=related%20pages%202:Abstracts Uganda Bureau of Statistics, 2002, Uganda Population and Housing Census, http://www.ubos.org/onlinefiles/uploads/ubos/pdf%20documents/2002%20CensusPopnSizeGrowthAnalyticalReport.p df Uganda Bureau of Statistics, 2010, Census of Business Establishments Report, http://www.ubos.org/onlinefiles/uploads/ubos/pdf%20documents/2010%20COBE%20Report.pdf 56 US Embassy Uganda, 2011, Investment Climate Statement, http://kampala.usembassy.gov/media/pdfs/uganda_2011_investment_climate_statement.pdf 57 Ministry of Energy and Mineral Development Amber house Plot No. 29/33, Kampala Road P. O. Box 7270 Kampala - Uganda Tel: +256 414 230243 +256 414 235895 +256 414 230926 Fax: +256 414 230220 +256 414 230234/ 732 Email: psmemd@energy.go.ug http://www.energyandminerals.go.ug (Printed by :..)
Feed-in Tariff Policy and Legal Instruments, Technical Assistance by the United Nations Environment Programme to support the Ministry of Energy and Energy Affairs of the Republic of Trinidad and Tobago, Final Report, October 2012
Government of Nepal Ministry of Finance Inland Revenue Department Tax Rates For Natural Person Fiscal Year 2077/78 (2020/21) (Only For Employment Income)