Eng. Moses Murengezi Simon Kalanzi Directorate of Energy Resources Development Ministry of Energy and Mineral Development, Uganda

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1 GLOBAL WORKSHOP TO ACCELERATE ENERGY EFFICIENCY: CHALLENGES, OPPORTUNITIES AND ROADMAPS Eng. Moses Murengezi Simon Kalanzi Directorate of Energy Resources Development Ministry of Energy and Mineral Development, Uganda

2 Geography Uganda is a landlocked country located in Eastern Africa that borders the countries of Democratic Republic of the Congo, Kenya, Rwanda, South Sudan, and Tanzania. Population 34.9 million, 70% in rural areas. Growth rate: 3.4%. Economy GDP growth stands at an average of 5%, reducing poverty from 56% in 1992/93 down to 19.7% by 2012/13. Average GDP growth is about 5%. GDP per capita: 572 USD. COUNTRY PROFILE

3 UGANDA ENERGY SITUATION Supply Pattern Biomass 88.8% Oil products 9.5% Electricity 1.7% TOTAL 100.0% Demand: Energy Electricity Residential 67.9% 21.5% Commercial 3.3% 11.9% Industrial 20.9% 66.3% Transport 7.4% 0.0% Energy Consumption per capita (kgoe): Commercial Energy Cons. per capita (kgoe): 38.5 Total number of households 7,482,304 National Grid Electrification Rate (%) 15.2 Peak demand = 520 MW Network losses = 19.1% (Distribution) = 4% (Transmission) 41% of customers on prepaid Installed capacity (Electricity) Plant/Source Capacity (MW) Kiira hydro power station 200 Nalubaale hydro power station 180 Bujagali hydro power station 250 Mpanga small hydro power plant 18 Bugoye small hydro power plant 13 Mobuku III hydro power plant 10.5 Kilembe 4.5 Kabalega 9 Ishasha hydro power plant 6.5 Nyagak III hydro power plant 3.5 Kakira Cogeneration plant 50 Kinyara cogeneration plant 5 Namanve thermal power plant 50 Electro maxx 50 Kaliro 10 Total 860

4 STATUS OF EE IN UGANDA TO DATE PRESENT SITUATION Existing focus areas Existing policies and strategies Existing institutional set-up Existing programs Industry Institutions (hospitals, schools, colleges and universities, Government buildings, water supply etc) Household Transport Commercial Agricultural Energy Policy, 2002 Renewable energy policy, 2007 EECD at the Ministry of Energy MEPS and Labeling program Energy auditing and management training for industrialists and consulting engineers Energy auditing for high energy consumers Awareness programmes (Annual energy week)

5 STATUS OF SE4ALL IN UGANDA SE4ALL SE4ALL Action Agenda complete and due for Cabinet approval. Secretariat operational. Draft investment prospectus has been developed Experts to develop communication strategy, Renewable Energy &RE, Systems for SE4ALL mobilized Database under development 3 pilot districts selected for piloting and testing the Action Agenda M&E Framework under development Joint declaration signed between Uganda, EU, German and France on SE4ALL Collaboration.

6 ACHIEVEMENTS Awareness continuously conducted (Annual Energy Week, Roadshows, Energy Exhibitions, Information materials on energy efficiency, Demo Lighting appliances) Energy audits conducted in industries and public facilities since 2005 EE investments in public facilities done ( ) Distribution of CFLs ( ). 1million LEDs currently under distribution by the distribution company Investments of EE for Street lighting in Kampala city ( ) EE&C Bill in process Draft EE Strategy and plan in place Standards and labels for five selected appliances (Lights, Refrigerators, Freezers, Motors, Air conditioners) finalized and gazetted. Implementation in initial stages

7 GAPS Existing focus areas EE in the Agricultural sector not currently addressed EE in the transport sector not currently addressed Promotion of EE in the Industrial & Commercial sectors is only in the areas of energy auditing and training in energy auditing as well as energy management. Promotion of EE in the Household sector is at a level of distribution of lights (CFLs in , LEDs distribution ongoing) but no EE building codes. Financing of Energy Efficiency not addressed Data base on EE covering all sectors Existing policies and strategies Energy Efficiency strategy still a draft No law on EE. However, EE&C Bill in progress Monitoring, verification and evaluation policies or strategies missing Existing institutional set-up The Energy Efficiency and Conservation Department under the Ministry of Energy and mineral development is in charge of all EE issues in Uganda. The EE law to provide more enforcement modelities.

8 CHALLENGES/BARRIERS TO EE PROMOTION Limited capacity Experienced technical staff Training Insufficient Institutional set-up NoLegislation and policy Limited access to capital and Financing other options for EE: Consumers often face high up-front costs for energy-efficient systems which hinder the investments in energy-efficiency technologies Behavioural barriers are problems that characterize the end-user s decision-making relating to energy consumption such as; Attitudes toward energy efficiency(e.g. purchase and consumption)behaviours. Perceived risk of energy efficiency investments (e.g. Discount rates) Information gaps (e.g. Lack of information on the performance of energy-efficient technologies)

9 FOCUS SECTORS AND TARGET SEGMENTS FOR ENERGY EFFICIENCY PROMOTION Sectors Industry Commercial Buildings Agriculture Households Transport Institutions Target segments Steel processing Cement production Beverage and Food processing Plastics industry Sugar factories Tea processing Hotels and Resorts Institutions and public facilities Transportation Commercial buildings *SMEs

10 TECHNOLOGIES AND ENERGY EFFICIENCY MEASURES TO BE PROMOTED Technologies LED lighting technologies (Household and street lighting) Promotion and distribution to consumers Energy Efficiency Motors VSDs The equalizer and Activar (Power quality solutions PF correction, power quality improvement) PQSCADA (Power quality management suite) Motor start-up solutions Measures Power Factor correction Energy monitoring Retrofit Energy Services Contracting Energy Efficiency financing through ESCOs and revolving funds Implementation of ISO Energy Management system standard

11 OPPORTUNITIES Efficient lighting programmes (domestic and street lighting) Technology upgrading (motors, VSD, e.t.c ) Energy Monitoring, Verification and Evaluation EnMS Implementation Energy Auditing services Refrigeration and air conditioning Energy Performance Contracting/Energy Systems Contracting Energy Management Training expertise Development of a programme on Building codes. EE transport and agricultural programmes Clean cooking Consultancy (general)

12 UGANDA Planned Program i) Increased Awareness and Information Dissemination ii) Conduct Education and Training in Energy Efficiency iii) Promote Energy Management in high energy consuming facilities iv) Financial Support and Incentives for energy Efficiency Programs v) Development of Legislation & institutional Framework vi. Reduce losses in the distribution network ENERGY EFFICIENCY AND CONSERVATION STRATEGIC INVESTMENT PLAN Strategic interventions Development of communication strategy, Holding Energy exhibitions, Development of printed information materials, Publication of articles in national Print Media, Development and publishing of the Energy management manuals for specific sector, Development and maintenance of a designated and interactive energy efficiency website Training for Energy Efficiency Staff, consulting engineers and Industrial staff, Energy Management training sessions for educational Institutions and designated industries, Collaboration and support to universities and technical institutes to incorporate energy efficiency and management into their curriculum Support for Energy Audits in high energy consuming industries, Support for power factor improvement in consumer facilities, Energy performance competition and Energy Awards programme for high energy consumers, Support for implementation of energy management system (ISO in consumer facilities) Provide Grants to conduct Energy Audits and Energy Efficiency investments, Credit support (Low interest loans) to support investments in Energy Efficiency technologies Develop energy efficiency and conservation Act to enforce energy efficiency improvement, Development of Energy Efficiency Standards and Labels (EESL) for Uganda Reduced technical losses in the distribution network through DSM measures

13 POSSIBLE ASSISTANCE REQUIRED AND NATURE Capacity building support Staff skills enhancement, analysis tools/systems, knowledge exchange/technology transfer; EE research collaboration; Development of EE Data base & MVE Procedures. Policy and legislation advisory support Review of the draft EE conservation bill; Review and update the EESP; Development of MEPS & labels. Support Financing of EE Activities to facilitate investments Identification of the financing instruments/tools for EE Programmes (E.g. Support Energy Audits, Energy Performance Contracting, EE Investments, ESCOs, e.t.c); Possibility of creation of the revolving fund on EE. Development of an EE communication Strategy Development of programmes in Industry, Transport, Agriculture, Buildings(like codes etc) and clean cooking.

14 POSSIBLE ASSISTANCE REQUIRED AND NATURE Start Uganda Energy Efficiency Facility (EEF) Identify cost-reflective price for verified energy and electricity demand savings; Format for least-cost energy planning; Develop as a pilot (through development funds/financing); Leverage with industry (Cement & sugar mills, cement kilns, tea industry, etc). Partner with Ministry of Energy and Mineral Development; Joining the Global Energy Efficiency Platform Accelerator.