New energy fund to connect 68,000

Feb 04, 2015

The World Bank has injected $10m in the newly-formulated energy revolving fund managed by the Rural Electrification Agency (REA) of the energy ministry.

By Ronald Kalyango

The World Bank has injected $10m in the newly-formulated energy revolving fund managed by the Rural Electrification Agency (REA) of the energy ministry.

REA’s manager for project development and management, Eng. John Turyagyenda, says they intend to use part of the resources to buy electricity connection materials to benefit the poor communities who have failed to connect to the national
grid.

“We have ordered for connection materials that will cover 68,000 customers in the countryside,” said Turyagyenda, on the sidelines of an energy workshop at the Lake Victoria Serena Hotel.

The two-day workshop was aimed at sharing experiences and lessons from consumer connections initiatives in rural electrification programmes from Ghana, Peru and Vietnam.

He says the connection materials will be given to the different concessionaires who have been contracted by the Government to manage the different electricity networks in the countryside.

The materials to be given out to the concessionaires on a subsidy include prepaid meters, meter boxes and low voltage cable wires.

Service providers

The rural electrification firms that will benefit include Ferdsult Engineering Services, Kilembe Investments Ltd, Bundibugyo Electricity Cooperative Society and Pader-Abim Community Multi-purpose Electricity Cooperative Society.

Others include Uganda Electricity Distribution Company, Kyegegwa Rural Electricity Cooperative Society Ltd, Westnile
Rural Electrification Company and Umeme.

Connection costs

“Despite constructing several low voltage electricity networks in the countryside, there is still high cost of the connection materials hence derailing consumer connections,” said Turyagyenda.

An individual looking to be connected to the national grid, is required to pay between sh400,000 and sh500,000 for the connection materials.

However, Turyagyenda is optimistic that the cost will drastically reduce since the materials will now be accessed by the service providers at slightly lower prices.

Ghana’s experience

Ghana’s former minister of energy, Dr. Joe Otenga-Adjei noted that their country’s national electrification policy, which was adopted in 1989, has led to a rapid electricity access, increasing from an estimated 15% in 1990 to 43% in 2000, 64% in 2008, 73% in 2012 and 75% in 2014.

“We had less than 5% rural coverage at the time we launched our policy, while grid power supply was restricted to the southern parts of the country, but the political will, adopting a comprehensive master plan and public mobilisation have helped to reverse the trend,” said Otenga-Adjei.

He advised that for Uganda to achieve its ambitious connections targets, the government’s budgetary allocation should be adequate and released on time.

“We want development partners to continue assisting rural electrification with less conditionalities,” said Otenga-Adjei.
“Planning for electrification access must be holistic to cater for the entire power value chain, avoid generation shortfalls and transmission and distribution system overloads,” said Otenga-Adjei.

State minister for energy, Eng. Simon D’Ujanga, who opened the meeting said:

“We have an ambitious plan of increasing electricity access in rural areas from the current 7% to 26% in 2022. A 50% target has been planned for 2030, while universal access in 2040,” said D’Ujanga.

He, however, noted that although national access to electricity has increased from 5% in 2001 to 14% in 2013, the connections were still considered below their overall target of 40% in 2022 while 80% target has been planned to be achieved in 2030.

D’Ujanga also regretted that despite their initial ambitious plan (2001-2012) they failed to achieve a 10% rural electrification target.

“Rural electrification stands at 7% because the initial donor-sponsored policy failed to work and we had to change it in 2006. The Government decided to take on the development of infrastructure, while the private sector came in to manage the constructed lines,” said D’Ujanga.