Report No. 4453-UG : Issues and Options in the Energy Sector Public Disclosure Authorized

July 1983 Public Disclosure Authorized Public Disclosure Authorized

Public Disclosure Authorized Report of the JointUNDP/World BankEnergy Sector Assessment Program This document has a restricted distribution. Its contents may not be disclosed without authorization from the Government. the UNDP or the . JOINT UNDIP/WIORLDTANK EETNER-YSECTOR ASSESSM4ENT PFRODGsRKL-

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Report No. 4453-UG

UGANDA

ISSUES AND OPTIONS IN THE ENERGY SECTOR

July 1983

This is one of a series of reports of the Joint UNDP/World Bank Energy Sector Assessment Program. Finance for this work has been provided, in part, by the UNDP Energy Account, and the work has been carried out by the World Bank. This report has a restricted distribution. Its contents may not be disclosed without authorization from the Government, the UNDP or the World Bank.

TITLE : UGANDA: ISSUES AND OPTIONS IN THE ENERGY SECTOR

COUNTRY : UGANDA

REGION : EASTERN AFRICA

REPORT TYPE CLASSIFICATION MM/YY LANGUAGE 4453-UG EA Official Use 07/83 English

ABSTRACT: In Uganda, per capita consumption of energy, especially commer- cial energy, is extremely low at the present time. However, there has been a recovery in economic performance during the past two years and, if this is sustained, it will lead to a significantincrease in energy demand over the remainder of this decade. Equally, the availabilityof energy will be an impor- tant determinant of the pace at which economic recovery can proceed. This Report focuses on the implicationsof this out- look for energy supply options, pricing policies, institutions and manpower, investment priorities and resource requirements. Major recommendationsof the Report relate to:

(a) implementationof a number of relatively simple and cheap conservation measures in the industrial and transport sectors;

(b) rehabilitationof Owen Falls Power Station and the prepara- tion of a medium-termpower developmentprogram;

(c) reductions in supply costs for petroleum imports through diversificationof supply sources, utilization of alterna- tive transportmodes and routes, and stocking policies;

(d) preparation of a petroleum exploration promotion package to determine the interest of oil companies in further explorationand development;

(e) alleviation of growing woodfuel shortages through programs for agro-forestry,urban and industrial plantations, and forest management;

(f) price adjustmentsfor electricity,petroleum and woodfuels, in order to encourage energy efficiencyand finance future investmentsin the sector;

(g) a phased program of institutional development, including establishment of a new Energy Department in MPPT and an Inter-MinisterialPolicy Committee;and

(h) consideration of an investment program for the energy sector of close to US$400 million over the next eight years.

ABBREVIATIONS AND ACRONYMS

Weights and Measures

GWh gigawatt hour ha hectare kg kilogram km kilometer kV kilovolt kVA kilovolt-ampere kWh kilowatt hour 1 liter m3 cubic meter m3 /s cubic meter per second MVA megavolt-ampere MW megawatt TOE ton of oil equivalent

Organizations

GSMD Geological Survey and Mines Depar