William Ogik v AG (application No. EDT/04 of 2012)
In 2012, AFIEGO facilitated Ogik's case before the Electricity Distribution Tribunal to challenge government compensation of Karuma dam affected people. Ojik represented the residents of of Awoo Village in Kiryandongo District. They demanded that the Ministry of Energy and Mineral Development revise the low compensation rates for their properties were affected by the construction of Karuma Dam.
Charles Kahirwa v UETCL (Application No. EDT/O3 of 2012)
Still in 2012, AFIEGO facilitated Kahirwa's case before the tribunal. His complaint was that UETCL took constructed a power grid in the middle of his land instead of on the edges as they had earlier agreed. By constructing in the middle of his Land, Kahirwa argued, UETCL had rendered his entire land useless by unnecessarily fragmenting it.
Following the two complaints of Kahirwa and Ogik, the accused in both cases agreed to renegotiate over the affected property. Government has since revised the compensation rates for Karuma dam affected people and UETCL agreed to move the power grid out of Kahirwa's land.
The community of Kabaale, Buseruka-Hoima District, did write a petition to the Hon. Speaker Kadaga in regards to the oil refinery that is to be constructed within their area. See full petition below.
26/09/2013: As government commissioned the construction of the 600megawatt Karuma Hydro plant last month, people affected by the project are still complaining of lack of compensation.
Some 168 residents of Awoo village in Diima parish Mutunda Sub County, Kiryandongo district complain that they have never been compensated despite losing their land and valuable property to the project.
Auma Bilentina, the Awoo LC1 Chairperson and member of the affected group, says although the other affected people were compensated in December last year (2012); the remaining group has never received even a single coin.
Auma lost about an acre of land. She says according to the evaluation results, she is entitled to 1.6million shillings. The village chairperson says although they were promised pay in May, four months later no money has been received.
She says what worries them most is the construction work going on after commissioned by President Yoweri Museveni on 12th August 2013, yet their money is not yet paid.
"We accept development but it has brought us poverty, people cannot afford to shift, we have tried to go through the Resident District Commissioner (RDC) but he has given us a deaf ear, we wrote to the president when he came here for commissioning but they stopped us from meeting him," she said.
Last week the energy ministry released a draft map showing the area earmarked for the construction of an oil refinery in Buseruka Sub-county, Hoima district. As Uganda plans to build an oil refinery, we thank our government for taking the initiative and deciding well on what is good for our oil industry and our country at large.
For stance, since commercial quantities of oil were discovered in Uganda six years ago, President Museveni has insisted that the country should add value to oil production by building a refinery. The idea was to make Uganda self-sufficient in petrol, diesel and kerosene-eliminating a hefty import bill of around US$ 500 million per year-and also to export petroleum products to other countries in the region. International oil companies were less keen on the plan, preferring to export crude oil quickly and profitably.
According to the oil refinery map that was released, 13 villages in Hoima district will be affected. And that at least 8,000 people are to be evicted after being compensated.
Also according to Bashir Hangi, the refinery project communications officer, the refinery map released will help them get people's complaints if any like the spelling errors and under or over valuation of property on their land.
However, though the refinery which is expected to begin late this year will enable value addition to the crude oil, boost employment to the locals and give the locals a chance to provide services, still there are gaps to be filled especially for the refinery process to commence and became successful.
First, there is still little access to information regarding the positive and negative impacts of the refinery and pipelines planed to be constructed from different oil wells by all stakeholders for the purposes of effective public participation.
Secondly, it is unconstitutional for the developers of the refinery to tell the local communities not to plant perennial crops in the proposed refinery land before payment of compensation to the affected people. This is affecting the capacity of household heads to sustain their families.
Further, the Resettlement Action Plan (RAP) which was undertaken and aimed at establishing land ownership, properties, loss of economic activities and livelihoods through compensation or resettlement from the refinery land, did not guarantee justice because of the Minister's failure to put in place formal regulations for the assessment and payment of compensation as required by section 20 of the Land Acquisition Act Cap 226. Instead, the RAP presented biased conclusions of consultants and government which impact on the communities negatively.
In addition, neither do the oil bills 2012 provide for a land owner an option to lease where he or she fails to agree with options of compensation or resettlement nor does it provide for compensation to include value added by the discovery of oil on the land. Leasing land will enable the land owners to continue getting rent throughout the oil production period and recover the land after oil exhaustion.
Therefore we believe that Resettlement Action Plans (RAP) should strictly be conducted in line with the Assessment and Payment of Compensation Regulations to protect the rights and interests of the affected people. This will avoid over reliance on the government valuer and districts land boards which are never independent to make reliable decisions for the affected people.
Also, In line with Article 26 of the Constitution, the communities in the proposed refinery area should not be stopped from using their land until full compensation is paid to them. And the new oil laws should make it clear that a developer/government can only acquire a right over the owner's land after paying full and agreed compensation to the owner.
Last but not least, the new oil laws should provide an option to land owners to lease their land to oil project developers in addition to resettlement and compensation. And also ensure that the compensation value includes that of discovered oil or the value of the project to be undertaken by the developer.
On 24th/June/2013, Kyambogo University KUEMA Students committee presented a petition to the director of NEMA Uganda on issue of safeguarding the environment from the dangers of oil activities in Uganda.
This was an initiative that was supported by AFIEGO, a public policy research and advocacy NGO whose main objective is to promote good governance in the management and utilization of energy resources for the common good and national development without compromising the environment.
Read full petition below:-
Despite the immense opportunities associated with solar energy, its adaptation in Uganda continues to be slow. Even as the Ministry of Energy, financed by the World Bank, prepares to roll out phase II of the rural electrification programme, it is becoming increasingly clear that hydro power is not a viable option and government needs to look into other sources of energy. One such source is solar.
According to the renewable energy policy 2007, the estimated electrical potential of solar is 200MW. Rural Electrification Agency (REA) estimates that so far there are over 600 solar connections in the country. Uganda has huge unexploited solar energy resources. Like most African countries, Uganda receives 325 days per year of bright sunlight. This gives solar power the potential to bring energy to virtually any location in Uganda without need for expensive large scale grid infrastructure.
Countries like Kenya have adopted a comprehensive solar system and their approach is a success story from which Uganda can learn. Kenya's major solar projects supply the national grid with 4mw. Kenya also has a number of off grid solar systems that have helped supply power to rural and peri urban areas- for example the 50mw power solar plant in Garissa-Northern Kenya and the L.Turkana 250MW solar project in Turkana district.
Solar energy would be particularly important for people on islands like Kalangala and in mountainous areas like kabaale, where it is difficult and too costly to extend the national grid because of the hard terrain. With the reality of climate change, solar energy is a way to provide clean energy without negatively impacting the environment and getting affected by the climate change.
Hydro energy problems
Government's failure to listen to the United Nation Inter-Governmental Panel on Climate Change (UNPCC)'s advice to factor the effects of climate change in all our development projects has continued to affect the capacity of our dams. Indeed, the prolonged droughts and degradation of the environment, especially around L. Victoria, are increasingly making our dams "ghosts". This is the reason why Owen Falls dam is currently producing 74mw instead of planned 180mw, Kiira dam is producing just 50mw instead of the planned 200mw while information about the actual production of Bujagali has never been independently verified.
The failure to produce the expected amount of hydro energy explains why Ugandans are paying high tariffs andstill in darkness despite government promises that upon the commissioning of Bujagali, tariffs would reduce and darkness would be no more, at leastfor two years. Unfortunately, even before Bujagali clocks five months, load shedding is greatly increasing and power tariffs are higher than before. Government has to recoup the costs of building the dams even when they are not working to optimum capacity, and the consumers ultimately shoulder the burden.
High power tariffs
Uganda's power tariffs continue to increase at a disconcerting rate, especially considering that over half of the population lives below the poverty line. Uganda has the highest power tariffs in East Africa. Ugandans continue to bear the burden of the ever increasing power costs. Last year the electricity tariffs for large-scale consumers rose by 69% to shs.312.8 from Shs.184.8 per unit. Tariffs for small scale consumers increased by 36% to shs.458.6 from shs.358.6.The ever increasing electricity tariffs remain the biggest challenge in Uganda's electricity sector year after year.
More to this is the problem of load shedding due to the demand for electricity being more than the supply because of the ever increasing number of people that are connected to the national grid every day. Uganda also experiences high production costs due to the concentration of dams on River Nile in Jinja. The major dams of bujagali, kiira and Nalubaale are all built on R. Nile and this makes it expensive to transmit electricity to the rest of Uganda. Also, a lot of energy is lost as power is transmitted over long distances.
Solar too expensive
State minister for Energy Eng.Simon Du'jang, has blamed the delay in adoption of solar energy on the high set up costs required when investing in viable solar systems. But like Dickens Kamugisha, Executive Director of the Africa Institute for Energy Governance, points out, setting up a solar system is a onetime investment. With solar energy, one need not worry about paying monthly bills to electricity generation and distribution companies. Also, there is no need to employ a lot of personnel to maintain solar energy or carry out meter readings like is the case with hydro energy. In the long term, solar energy is evidently the more affordable option.
Therefore there's a need to empower individuals and communities as producers and controllers of solar energy, other than having the government being the main key player. This would, in turn decentralize power distribution. Thus far, government should concentrate on subsidising the people who install solar to make it easier for them to access solar energy. Fruitful partnerships with potential investors should be taken into account by government for the development of solar projects implementation.
Solar energy is one of the most promising renewable and environmentally friendly energy sources. Government needs to diversify the energy sector through increased investment into other renewable energy sources, chief of which should be solar energy. Only then shall we have hope of realizing the renewable energy policy 2007goal of increasing use of modern renewable energy from 4% to 61% by the year 2017.
Recently the media reported that government had signed a power purchase agreement with a major American infrastructure firm AAE systems that will take on a $1.2 billion, 150Mw, geothermal power plant in Kasese district .It is commendable that government is taking such a huge stride in trying to meet the electricity needs of Ugandans.
Such developments are needed for the country to fully exploit the existing geothermal potential estimated at 450MW (Renewable Energy policy 2007). Aside from the proposed Katwe Geothermal Power Project, another remaining 300 MW could be developed at Buranga-kabale district, and Kibiro-Hoima district.
Ranked 10 on the list of the 24 global producers of geothermal technology, Kenya is the leading producer of geothermal energy in Africa. In 2010, geothermal energy accounted for almost 20% of Kenya's total electricity generation, all coming from the rich reservoirs of Olkaria I, II, III and IV. Currently Kenya generates over 200mw from geothermal technology. An additional 512MW is forecast to be added to the Kenyan Grid by 2020.
To achieve this, the Kenyan government has had to undertake several Institutional and Policy reforms geared towards promoting geothermal energy development. At Institutional level, Geothermal Development Company (GDC), a semi-autonomous state-owned company, was established and charged with financial risk mitigation, appraisal and production drilling in the early stages of geothermal exploration and development.
GDC also works with domestic and international financial institutions to underwrite and spread risk through Joint Ventures with investors. Deterrent capital investment risks associated with this technology have been assumed by the government's investment in exploration and feasibility studies as an assurance to potential investors.
A 20-year feed-in tariff policy benefits all the Independent Power Producers (IPPs) generating power not exceeding 70 MW this acts as a market incentive.
The above highlighted bold policy initiatives continue to attract both domestic and foreign investment into the country's geothermal resource sector in Kenya.
Uganda is on the brink of yet another load shedding roaster due to electricity demand outpacing supply, while the procurement standoff between the IGGs office and Ministry of Energy and Mineral Development continues to delay the development of Karuma Power Project, cloning the Kenyan success story in geothermal technology would be a welcome relief to Ugandan electricity consumers.
Unlike hydropower, the technology is not affected by drought and climatic changes, it is green and clean energy with almost no adverse effects on the environment with less carbon emissions compared to fossil fuel technology and has predictable low operational and management (O&M) costs compared to other forms of renewable technology.
By addressing the existing bottlenecks to the development of geothermal technology which include lack of a geothermal policy and Act, inadequate funding for the initial ground surface works and a non existing skilled manpower in the sector, will be a precursor to attracting more investment into the sector.
In a country where the electrification rate is only 12% for the whole country and 6 % for rural areas, the katwe geothermal project will enable substantial increase in the provision of additional reliable and clean power generation capacity to Ugandan households, businesses and industries. This in turn will also improve electricity coverage in Uganda, which is still one of the lowest in Africa.
Africa Institute for Energy Governance
The government and Uganda's development partners like the World Bank have done well to promote and support rural electrification. So far, Uganda's electricity access in rural areas is six per cent, though the Rural Electrification Agency (REA) had targeted a 10 per cent access for rural Uganda by 2012.
According to REA, currently there are more than 6,000 solar connections and 426 grid extension projects that have been implemented countrywide to support social and economic projects for rural transformation.
Rural electrification is important because it increases electricity access to rural areas, thus improving the standard of living and the economic competitiveness of people in rural areas.
An estimated 90 per cent of Ugandans live in rural areas with less than three per cent electricity access. There is, therefore, need for rural electrification to cover the biggest percentage of Uganda's population.
However, it is uncertain whether the rural electrification programme is meeting its objectives of reducing inequalities in access to electricity and the associated opportunities for increased social welfare, education, health and income generation.
Access to electricity is vital for development for electricity serves as a catalyst, making the other pillars of development, education, modern healthcare, agriculture and other income-generating activities possible.
It has also been noted that for a society to move out of subsistence, conventional energy is a precondition. Therefore, access to electricity is not an end in itself but constitutes an important tool for development when we consider its linkages to agriculture, education and health.
In addition, the media recently reported that the West Nile Rural Electrification Company (WENRECo) wants to increase its power tariffs, a move that was opposed by the legislators from the region, citing irregular power supply. Under the Rural Energy Infrastructure, WENRECo signed a 20-year concession with the government to construct Nyagak hydropower dam and supply power to West Nile.
However, despite the fact that various dams have been commissioned across the country over the years, the increasing rate of power tariffs in Uganda is alarming. Despite heavy investments and reforms, Uganda's power tariffs and power losses still remain one of the highest in Africa. Increments in tariffs should ideally be matched with improved service.
If in 1990, the population of Uganda was less than 17 million and today, we are 34 million, what does the rural electrification access increase from two per cent to six per cent in 12 years mean? How many people are connected to electricity and can use it profitably compared to those without access to power or those with access but cannot benefit from it because of poverty or ignorance?
According to the REA, in Oyam, Pader, Abim and other districts, connection costs have been subsidised and people can pay in installments. But we need to take into consideration that after installation, there are high tariffs to pay!
Are we, therefore, getting value for money from our investments in the rural electrification projects? What is the best way to make electricity relevant to the needs of the poor? What is the impact of tariff increase on the efforts of the poor to use electricity to overcome poverty?
If power consumers in urban areas are disconnected due to failure to pay bills, how do we expect those in rural areas to benefit from electricity? Is there any case study that can help us demonstrate how the poor can access and profitably use the current expensive electricity?
It's at this critical time in the lifespan of the rural electrification programme (12 years) that these critical questions should be answered. More so, despite the good laws, the government has continued to implement good initiatives through closed processes with no input from the beneficiaries - the poor to whom such reforms were intended to benefit.
As a result, the rural electrification projects have continued to miss out on the much-needed popular support of the public, a key ingredient of success for any project aimed at providing the common good. In the end, the government and development partners have to continue providing unsustainable support such as subsidies to the private sector.
Remember, electricity is a right and Ugandans have a duty to demand accountability, accessibility and affordability. A well functioning governance mechanism such as effective implementation of laws, strong institutions, public participation, access to information and to justice would allow for better decision-making about the goals of rural electrification initiatives. It will also ensure that such goals are tailored to the needs of the rural poor who are the beneficiaries of such projects.
Africa Institute for Energy Governance.
Usually large scale projects like hydro power tend to grab headlines when it comes to renewable energy. However, there are many less celebrated small scale renewable energy projects. These have the potential to fuel businesses, reduce the carbon footprint, enhance environmental conservation, create employment and create income. In April, the New Vision newspaper ran a story about Rose Twine, a woman making millions through her energy saving stoves. The stoves optimally utilise special stones (other than charcoal) which in turn conserves the environment.
The stoves, apart from being environmental friendly, solve the problem of wood shortage which is rampant in rural areas. They reduce deforestation and wood consumption by 95% and cooking time by 75%. They protect the eco-system and reduce emission of harmful gases. The stoves can also be used to charge phones and light bulbs.
The renewable energy sector has a growing market that remains untapped despite continuous rise of unemployment rates among the youth. Supporting these projects will help meet multiple objectives as stipulated in Uganda's renewable energy policy 2007. The objectives include: Increasing access to clean energy, improving security of energy supply, contributing to inclusive social and economic development, protecting the environment and creation of employment in the emerging green economy- In essence, setting Uganda on a low carbon pathway.
The last few years have seen a growth in community based small scale renewable energy projects. These have mainly been triggered by increased awareness of climate change and environmental issues. Also, the social and economic benefits of such projects to individuals and the wider community are invaluable. However, the key problem remains in financing such projects.
These projects are often perceived as too risky for investors and too costly for the economy. This and other challenges such as in-house technical expertise, project coordination, and up-front funding at the planning stage, have hindered growth of these small scale renewable energy projects.
Small scale renewable projects respond to the urgent need to cut Carbon emissions, to boost the economy, diversify the energy supply, increase resilience and security of supply. It is important to note that renewable energy is an investment opportunity which can pay for itself over time. For businesses and citizens, much of this opportunity lies with small projects where the public can see the direct benefits of investment.
Employment created by small scale renewable projects has significant beneficial impact on local businesses and community as a whole because much of the labor required to implement these projects such as (contractors, installers, electrical engineers etc.) becomes part of the core workforce of the community.
We therefore urge government to create a range of incentives to encourage roll out of these projects like provide finance at beneficial rather than off-market interest rates, flexible grants or 'soft' loans, project preparation support to those that demonstrate potential and profitability and help those with promising project concepts develop their ideas into bankable proposals.
Promote adoption of solar energy for electric power generation
In Uganda, we heavily rely on hydro electric power and that's why our power distributors like Umeme are taking advantage of it to exploit the power consumers.
Last week, the media reported that the government was set to increase electricity tariffs again. This is as a result of pressure from our major distributor Umeme on government to increase the power tariffs. UMEME had proposed new tariff rate shs593.9 per KWh of power consumed instead of the current shs524.5 per KWh of power consumed, but ERA proposes shs576.9 for domestic consumers. This is what I would call consumer exploitation.
As Ugandans, we should adopt solar energy to power our houses, run our businesses, power schools, hospitals and clinics to reduce on being exploited by the hydro power distributors.
Despite the immense potential of solar energy radiation in Uganda which could be harnessed for electric power generation for the benefit of Ugandans, the rich, infinite, limitless energy resource is still untapped.
Given the scale of investments needed with grid connection, innovative approaches for planning and financing are critical. These approaches should be paid great attention to in order to promote mixed technologies. So, addressing tariff issues is always crucial for sustainability of the sector and for fund mobilization needed for refurbishment and expansion of energy infrastructure. Therefore, devising other means such as adoption of solar energy would be a good idea.
Although many people are feared by the huge expenses of installing the system, the long term benefits are enormous as solar will help you reduce your monthly expenditures on power which is good for our businesses.
Remember, a high electricity tariff has remained the biggest challenge in Uganda's electricity sector today year after year. However, one should know that with these ever increasing power tariffs, the power losses will also increase due to electricity theft since many Ugandans will not afford their high priced bills. And again, the high power rates will lead the economy in to crisis because they will inhabit production thus low government taxes and constrained production.
Recognizing the technical improvement of solar technologies and utility scale electricity generation and their suitability for installation in Uganda, our government should take steps to increase the promotion, adoption and adaption of solar electricity generating technologies for power supplies with in the country. This will ease many Ugandans from ever increasing power tariffs.
ERA last increased the tariffs in Jan 2012 after the scrapping of government subsidies for consumers. Then, tariffs for large scale consumers rose by 69% to shs312.8 from shs184.8 per unit. Those of small scale consumers rose by 36% to shs458.6 from shs358.6 .And its only one year since that Umeme is again pushing for increased tariffs. With continuous investment in the power infrastructure, end user tariffs are likely to keep increasing.
We therefore urge our government to foster close cooperation for the development of solar energy in general and the technologies for utility-scale electricity generation in particular and promote fruitful partnerships solar project's implementation.
Our government should continue supporting the international initiative for introducing advanced solar technologies in Uganda for bulk-scale electricity generation .Such initiatives accelerate technology transfer and support indigenous manufacturing of equipment.
Lastly but not least, our government and other specialized institutions should not only ensure the adoption of sustainable development for solar energy in their policies and strategies, but also make sure such policies and strategies are implemented for the sake of Ugandans.
Africa Institute for Energy Governance