Govt seeks $1bn for rural energy plan

Dec 05, 2013

THE Government is seeking for $1bn to fund the Rural Electrification Agency (REA)’s newly-approved rural electrification plan. REA’s executive director, Godfrey Turyahikayo, says the 10-year plan which was approved by the Cabinet in October aims at increasing rural electrification access from the c

THE TEN-YEAR PLAN WAS APPROVED BY CABINET IN OCTOBER WRITES, RONALD KALYANGO

THE Government is seeking for $1bn to fund the Rural Electrification Agency (REA)’s newly-approved rural electrification plan. REA’s executive director, Godfrey Turyahikayo, says the 10-year plan which was approved by the Cabinet in October aims at increasing rural electrification access from the current 7% to 22% by 2021.

“This will be no mean achievement, requiring a raise from the current national access of 12% to 100% in a period of 23 years,” he says. He says to achieve their goal, they have set intermediate targets of achieving 22% by 2021 and 80% by 2030. “This means that the more accelerated access required in the later planning periods will pose a very heavy challenge on financial resources if the universal access target is to be met,” he observes.


ACHIEVEMENTS

Turyahikayo says the programme has realised the construction of 3,774km of medium term voltage power lines and 2,500km of low voltage reticulation networks. A further 2,000kms of medium voltage power lines and 1,500kms of low voltage networks are under construction and are expected to be commissioned by the end of the year. He says the construction of the grid extension power lines for the last 10 years has facilitated the connection of 22 new district headquarters.

These are Sembabule, Kiryandongo, Mitooma, Kibaale, Kanungu, Kyenjojo, Isingiro, Pader and Agago. Others are Abim, Oyam, Bundibugyo, Lamwo, Nakapiripirit, Amudat, Kaberamaido, Dokolo, Amolatar, Ntoroko, Alebtong, Moroto and Napak .In addition, a number of other lower local administrative headquarters, social centres, education institutions, and many economic enterprises like tea factories in Muzizi, Kayonza and Rugyeyo have been connected on the national grid. “We have also extended electricity to fish factories in Kasensero, Lambu, Wakawaka, and Bukungu, Mutaka kaolin mine, Namekhala ver-miculate and Tiira gold mine in Busia district,” he explains.

The organisation has also constructed several grid extension projects as interconnectors of renewable energy-based power projects to the main grid including Mpanga mini hydro power plant in Kamwenge, Kakira Sugar Works, Kikagati mini hydro power project and Buseruka mini hydro project in Hoima district.


“The planning and establishment of the grid interconnection infrastructure includes the provision of electricity to communities along the power line route,” Turyahikayo points out. He says while working with the rural communities, REA has implemented 177 schemes within the Umeme footprint realising the construction of 257km of medium term voltage lines and 294km of low voltage networks.

A further 65km of medium voltage lines and 43km of low voltage networks are under construction within the Umeme footprint while other community schemes have been implemented in other concession areas. The West Nile regional independent grid consisting of Arua-Nebbi and Paidha with heavy fuel oil powered generation plant in Arua is also being implemented.

The mini-grid has been connected to the 3.5 megawatts generated at Nyagak in Zombo district to provided additional electricity in the sub-region. The Kisiizi mini hydro project in Rukungiri district, which supplies electricity to Kisiizi Hospital and neighbouring trading centres and villages, was commissioned in 2009. The rural electrification programme supported the expansion of the network to more consumers and the procurement of some equipment including the pre-paid meters. With the help of GIZ, an independent grid based on a small hydro (60 kilowatts) has been established in Buhoma in Bwindi impenetrable. “The generator has been commissioned and is now undergoing reliability tests, which thus far are showing very promising results,” says Turyahikayo


Once completed, the grid will supply electricity to Bwindi Hospital and Buhoma trading centre. With similar support, another independent grid based on small hydro (40 kilowatts) is being established at Suam, close to the Kenyan border. He says REA has also funded establishment of independent grids based on thermal generators in Kalangala district, Ngoma town council and others were installed in Adjumani and Moroto districts to replace the dilapidated smaller generators.

In 2008, the rural electrification programme established the photo voltaic targeted market approach that enhances access to solar through the provisions of smart subsidies that target the end users. To maximise access, in addition to commercial banks, micro-finance institutions and Savings And Credit Co-operative Organisations are utilised to dispense the subsidies.

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FUTURE PLANS
He says the agency has secured funding to construct an additional 934km of medium voltage power lines and associated low voltage infrastructure to cover more areas in the districts of Abim, Lira, Gulu and Nwoya. Others will include Adjumani,
Moyo, Buliisa, Hoima, Masindi, Kayunga, Mbarara and Isingiro districts. Additional grid extension projects undergoing final
design studies with firm funding will cover the districts of Kapchorwa, Bukwo, Suam, Kween, Mayuge, Kamuli, Mityana and Masaka. Others will be Rakai, Apac, Kibaale, Hoima, Kitgum, Lamwo, Nebbi, Zombo, Arua, Maracha, Koboko and Yumbe districts.


CHALLENGES
Turyahikayo, however, says while implementing their projects, they have faced several challenges like inadequate and inconsistent funding. “The ambitious targets that we have set may not be achieved if the programme fails to attract the needed funds to execute its projects,” he laments. He says the programme has also met a lot of resistance and compensation demands from people through whose land electricity lines are to be constructed. “While we normally request the political leaders and local authorities to help sensitise the population in those areas to allow the passage of lines due to the importance of electricity within those areas, the results have not been positive,” says
Turyahikayo.

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100 district offices get electricity

The Rural Electrification Agency (REA) is this year marking 10 years of existence. As they celebrate their anniversary, Ronald Kalyango talked to Fred Kabagambe-Kaliisa, the permanent secretary, Ministry of Energy and Mineral development who also doubles as the agency’s board chairman. Below are the excerpts

QUESTION: Why did Government establish the rural electrification board and REA?
ANSWER: Before the power sector reforms took place in 1999, there were no explicit policies or legal provisions for the trueGovernment to carry out the rural electrification programme. But after the reforms we needed to introduce the private sector into the power sector with the purpose of investing in infrastructure and managing the operations therein to increase investment and achieve efficiency.

In particular, the Electricity Act of 1999 provided for the establishment of a coordinated rural electrification programme through a public-private partnership. It also provided for the creation of the fund to finance the programme’s activities in order to increase electricity access in rural areas and achieve a desired rural transformation to support the nation’s economic development.

Did you achieve your targets?
We didn’t achieve the set target of 10% electricity access by 2010 and later 2012. We only achieved 7%. But that is not to say we did not perform well. There were external circumstances that prohibited the board and agency to achieve the initial targets. For example rural electrification is competing with the country’s population growth. The increasing population growth rate of 3.5% is quite high and this has exceeded the agreed rate of electrification per year given the limited financial resources.

The initially donor-sponsored policy for rural electrification in 2001 which was based on private sector-led commercially oriented rural electrification failed to work. We had to change the policy in 2006 so that the Government could take on the development of infrastructure while the private sector comes into management. I am satisfied because we have electrified over 100 district headquarters. It’s a very good starting point. With the previous challenges

How are you prepared to achieve the new targets?

We think it’s highly possible because we have changed the policy design. We shall not leave the business to the private sector. Government is participating directly in providing resources for the infrastructure. We are intensifying on the mode of delivery. We are looking heavily at other sources of energy like solar. We want to provide solar to homes in highly isolated places but most importantly we have configured the country into service territories such that we have managers or project developers to manage various territories. That way we think we shall achieve our targets.

How do you intend to roll out the new strategic plan?

We are implementing a ten-year programme and in the first three years we intend to demarcate and procure various service providers but at the same time continue construction of new electricity lines. The next seven years will be a period for intensive operations. The service providers will be on ground connecting new customers. I think this way we shall be able to achieve universal access by 2040.

How are you addressing issues related to generation of more electricity?
There has been a constraint of reliable power supply but we are curing the generation issue. Bujagali(hydro power station) has just come on stream and in the last 18 months, the consumption per capita of electricity in the country has doubled from 75 kilowatts hour per capita to 150 kilowatts hour per capita. Now that we have a contractor for Karuma and Isimba and then finalising feasibility studies for Ayago, we shall have good supply of electricity to enable us achieve our rural electrification targets. Many lines have been constructed but the connection rates are still low.

Any comment?

Government is considering lowering the cost of electricity by investing in generation such that the resultant tariffs are reduced. We have also started to give connection subsidies. Working with development partners like the World Bank and the Norwegian government, we are providing connection subsidies to rural customers who have failed to extend
electricity in the last two years.


With such challenges, is there a need to celebrate?

When we fought through this rural electrification programme in 1999, at that time we had 1% customers in rural areas accessing electricity. About 30 districts had access to electricity but to date we have connected over 100 districts headquarters onto the national grid. I think it’s a cause to feel good. We have built a reputable institution and there is a point of being happy

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