By Gerald Tenywa

THE German government has offered 10m euros to promote renewable energy in order to alleviate poverty.

This was disclosed on Monday at a ceremony held at the finance ministry during which Syda Bbumba, the Minister of Finance, and Reinhard Buchholz, the Germany ambassador, signed an agreement for renewable energies and energy efficiency.

Renewable energy includes solar and hydro-electric energy, which cannot be depleted. It is different from oil and gas, which are depleted after consumption.

“The agreement will improve supply of energy from renewable sources, thereby increasing the power generation capacity and reducing the frequency of load shedding,” said Bbumba.

Three years ago, the country developed a policy on renewable energy aimed at increasing the population’s access to power from 4% to 61% by 2017.

The reduced access to power is one of the factors that have increased the cost of running businesses.

“Since 2007, energy has been a focal area for the German development co-operation in Uganda.

“This additional funding has increased the total grant finance commitments to sh28m,” said Buchholz.

He added: “A large share of that financial commitment is focused on projects in the West Nile in the northern region.”

The money will also cover funding of mini-hydro-electric power plants including completion of Nyagak hydro-power plant in Paidha in West Nile.

The German envoy pointed out that the implementation of a mini-hydro power plan at Maziba near Kabale is moving forward and construction is likely to begin this year.

The construction of a new 132kw transmission line from Kampala to Entebbe will also be covered using the funds.

“It is important that this project moves forward while at the same time ensuring that environmental and social challenges associated with it are managed carefully,” he said.