THE German government has offered Uganda 10m euros to promote renewable energy in order to alleviate poverty. The finance minister, Syda Bbumba and Reinhard Buchholoz, the German ambassador, signed the agreement for renewable energies and energy efficiency.

Renewable energy includes solar and hydro-electric energy which cannot be depleted. Boosting the output of solar and hydro-electric energy automatically means better standards of living as clean power means better health.

Three years ago, Uganda adopted a policy on renewable energy aimed at increasing the populatiopn’s access to power from 4% to 61% by 2017. The German government’s offer could not have come at a better time. This is a most welcome development because it means addressing the critical issue of environment abuse and cutting down the cost of running business as most industries depend on power.

The conventional non-renewable energy sources, like fossil fuels, crude oil and natural gas, are dwindling fast worldwide. Biomass, which comprises firewood, charcoal and agricultural residues, play a significant role in Uganda’s energy resource constituting 93% of the total energy consumed in the country. There is compelling need of going for biomass technology to produce combustible gas.

Biogas technologies can also offer an opportunity to tackle the waste management problem in the country and wood fuel conversion technologies such as wood stoves and brick kilns. According to a 2005 energy ministry policy statement, trade in biomass fuels contributes $20m per annum to the national economy in terms of rural incomes and tax revenues.

In addition, biomass fuel trade employs close to 200,000 people and saves the country foreign exchange equivalent to $160m per annum in terms of oil products which would otherwise be imported.

But as the German envoy pointed out, the renewable energy project must move forward while at the same time ensuring that environment and social challenges associated with it are managed carefully. Germany might have offered us the money, but its wise management is squarely Uganda’s responsibility.