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

2. POWER SECTOR REFORMS Renewable Energy Policy Liberalization & private sector participation Independent regulatory body

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

4. ENERGY SECTOR (Cont’d) Thermal plants Power supply shortfalls High electricity tariffs Untapped renewable energy resources potentials (biomass, solar, wind, geothermal etc)

5. ENERGY CONSUMPTION

6. FOREST SECTOR National goals and objectives Achieving sustainable forest resource management Raising the incomes and quality of life Increasing economic productivity and employment

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

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

9. LAND COVER /USE

10. OWNERSHIP OF FORESTS

11. WOOD DEMAND

12. WOOD CONSUMPTION

13. TRENDS (Demand, Yield, Deforestation & Wood Balance)

14. OPPORTUNITIES IN THE FOREST SECTOR Availability/security of land and trees The permanent forest estate Wood industries The District Forestry Services Biodiversity and environmental services Urban forestry Forestry in rural livelihoods Contribution of forestry to wider govt priority plans

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

16. OPPORTUNITIES Increased private sector and community participation Investment opportunities for private sector Energy plantation development

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

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