MINISTRY OF ENERGY ACHIEVEMENTS AS UGANDANS CELEBRATE 36 YEARS OF NRM IN POWER

JANUARY 26,2022 – MINISRY OF ENEGRY SPECIAL SUPPLEMENT

Celebrations to mark 36 years since NRM took power will be held under strict Covid-19 SOPs, the minister of state for Economic Monitoring, Peter Ogwang has revealed while the Ministry of Energy and Mineral Development is showcasing its achievements over the years .

Ogwang said President Yower Kaguta Museveni the Commander in Chief will preside over the national celebrations where only 547 people are expected to attend the main do at Kololo ceremonial grounds.

The celebrations will be held under the theme: “Celebrating the 36th NRM victory day, a call to duty for all compatriots to continue towards Uganda’s Social Economic Transformation Journey.”

Hon. Dr. Ruth Nankabirwa Minister of Energy and Mineral Development

HIGHLIGHTS OF THE MINISTRY OF ENERGY ACHIEVEMENTS AS UGANDANS MARK 36 YEARS of NRM GOVERNMENT

THE MANDATE

The Mandate of the Ministry of Energy and Mineral Development is to “Establish, Promote the Development, Strategically Manage and Safeguard the Rational, Sustainable Exploitation, Utilization of Energy and Mineral Resources for Social, and Economic Development”.

Promote private investment in oil and gas industry. 

Promotion of the country’s petroleum potential:  The Ministry is undertaking various promotional efforts in view of attracting further investment in the country’s oil and gas industry through; –

  1. Disseminating promotion materials to and engagements with companies interested in investing in Uganda’s oil and gas sector.
  2. Undertaking the 2nd Licensing Round Strategy and Plan.  The award of the respective exploration licenses is expected by June 2022.
  3. Undertaking detailed geological, geochemical and geophysical surveys in the Moroto-Kadam Basin in an effort to open up the region to attract the required investment.  .
  4. The Ministry continued to assess the country’s oil and gas potential and compilation of the Petroleum Resources discovered in the country to date.  This facilitates Government’s reporting of the oil and gas resources in the country as well as a quality assurance tool for the estimates communicated by the oil companies.

Mineral Development Program

Online Mineral Licensing System: The mineral sector is now licensing through an online platform, eliminating the delays of the paper-based licensing system. All applications, renewals and payments are now done online. A total of 680 mineral Licenses are operational and 15 mineral licenses have been cancelled for non-performance.

Formalization of Artisanal and Small-Scale Mining: Continued with the sensitization and formalization of miners. Over 20,000 ASM were registered in Mubende and Kassanda areas. The miners were trained in best mining practices, environment, health and safety in mining and business skills. Completed the design of Biometric Registration of Artisanal and Small scale Miners (BRASM) that is linked to NIRA system. The BRASM was launched in Gulu on 10/09/2021 and over 200 miners have been registered biometrically.

Mineral Investment Promotion: Government promoted and attracted investment from a number of competent mineral exploration companies in its mineral resources. The projects are now at mine development stage. These projects include Wagagai Gold Project in Busia that was on 5th October 2021 the largest gold deposit so far quantified with estimated resource of 12.9 million tons of gold ore at a grade of 2.89g/t.

Minerals development

Other investments include: Graphite Project in Orom, Kitgum by Consolidated Africa (U) ltd; Rare Earth Elements (REE) Project in Makuutu, Bugweri District by Rwenzori Rare Earth Elements; Jervoir Base metals in Rwenzori, Kiboga and Karuma; Nickel project at Zeu, Adjumani by SAMTA Mines and Nickel Project at Akelikong, Lamwo District by SIPA Exploration Co. Limited and Evergrande Gold Project in Amudat.

Airborne geophysical Surveys and geological mapping of Karamoja Region: The Government of Uganda contracted X-Calibur, a Spanish company to carry out Airborne geophysical Surveys and geological mapping of Karamoja Region to establish the mineral potential of the region. The aerial surveys commenced on 1st April 2021 and have achieved new data sets of Gravity at 100%, Magnetic 97% and Radiometric 97%.

Establishment of the geological and mineral potential of the country: Government has established 103 million tonnes (MT) of iron ore in Kabale District and 15MT in Rubanda District, bringing the total iron ore reserves in south western Uganda to 318 MT with estimated resource of up to 1billion  tonnes. The iron ore in Kabale and Muko is associated with gold, Nickel, Zinc, Tin, Titanium and wolfram. Government undertook assessment of the proposed 10 iron ore prospects in Kabale and Kisoro districts under collaboration with the European Union. The team identified four drill whole sites in every iron ore prospect and collected information on the status of each drilling site.

Government commenced re-evaluation of Kirwa wolfram to map the extent of the mineralization. 

Monitoring of geotectonic events: The Government of Uganda undertook reconnaissance survey in West Nile region to identify sites for installation of seismic stations. Nine sites have so far been identified in the following districts, Nakasongola, Pakwach, Zombo, Arua, Yumbe, Moyo, Amuru, Gulu and Lamwo. 

Regional mineral beneficiation centres: Construction of mineral beneficiation centers is in progress in Fort Portal at 90% and Ntungamo Districts is completed, awaiting verification and hand over.

Geothermal Investigation: Eight (8) Temperature Gradient Holes (TGH) were drilled at Kibiro in Hoima District. The data is being analysed and the information will be the basis for drilling deep exploration wells at Kibiro. Other sites include; Panyimur and Kibiro, Buranga and  Ihimbo and Kanangorok in Rukungiri and Karenga.  

Mineral Laboratories: Government established a functional mineral analysis laboratory in Entebbe and is to sign a contract to have the laboratory certified and accredited. New equipment such as ICP-OES, Portable XRF, and Ion Chromatography & Carbon Sulfur Analyzer have been installed and seven more equipment for mineral beneficiation tests are to be supplied and installed this financial year.

Kilembe Mines Project: Government put in place an inter-ministerial committee to identify a private investor for the development of the mine. The process of identifying the investor under a Public-Private Partnership has commenced.

The Mining and Mineral Bill, 2021; The Mining and Mineral Bill, 2021 was tabled before Parliament on 17th February, 2022 and it was passed with amendments. Key amendments included: Minister to issue mineral licenses, PSA to apply only to brown fields and strategic minerals, Building Substances and Regulation of Earth Scientists removed from the Act and recommended for a separate Acts, Mineral Protection Force removed, and internal enforcement mechanism recommended.

Gender Mainstreaming in the Mineral Sector: Continued with the capacity building on gender and equity in the mineral sector. A team of geoscientists participated in regional gender mainstreaming and validation workshops in Fort portal in western Uganda and Mbale Elgon Hotel in Eastern Uganda.

Sustainable Energy Development Programme

Electricity Generation:The total electricity generation capacity increased from 1,268.2MW to 1351.7 MW of which 1,235.2MW supplies the main grid, 13.98MW is off grid and 102.5 MW is for own consumption which is mainly by the bagasse cogeneration plants against a peak demand of about 800MW. This is as result of completion of the 42MW Achwa I, 15MW Nyamagasani I, 6MWNyamagasani II and 15.5MW increase at SCOUL (March 2022).

The Sector continued with the implementation of the following projects: Karuma Hydropower plant (600MW), Muzizi (48MW): Isimba HPP 183MW, Namanve thermal power plant, Ayago Hydropower Project (840), Kiba Hydropower Project (400 MW) an Oriang Hydropower Project (392MW).

Transmission lines have been erected to take electricity to the people

Electricity Transmission and Distribution Network: The transmission network increased from 3,100km in 2020 to 3,431km as at end of Quarter 3 FY2021/22. The increment is from the commissioning of Karuma -Kawanda 400kV and Karuma – Olwiyo 132 kV Transmission Line. The Luzira Substation was completed but its commissioning awaits completion of the 15km, 132kV transmission line. The transmission network losses stand at an average of 4.1%.

The following projects are under different stages of construction: Construction of the following; Opuyo-Moroto 132kV transmission line, the 132kV Lira-Gulu-Nebbi-Arua Transmission line, Mutundwe – Entebbe 132kV,Tororo – Opuyo – Lira, 132kV: Lira – Opuyo Section is complete and energized, Industrial Parks Phase III: Government signed a bilateral Agreement with Government of Sweden under which a transmission line project is to be developed with the objective to grow demand to absorb power generated and provide reliable power to industrial parks  to Kira Motors and environs, Masese, Njeru, Ishaka, Kaseses and Kaabale, Lira-Gulu-Agago, 132 kV line with associated substations, Grid Expansion and Reinforcement Project (GERP); NELSAP Projects: Procurement of the consultant to undertake the feasibility studies for 400kV Uganda (Olwiyo)-South Sudan (Nimule-Juba) transmission line was concluded and assignment commenced on 14thMarch 2022. Selection of the consultant to undertake feasibility studies for 400kV Uganda –D.R Congo interconnection is ongoing, and the 400kV Uganda (Masaka)-Tanzania (Mwanza) interconnector: Procurement of a consultant to undertake feasibility studies for this interconnector is ongoing.

Electricity Distribution Infrastructure and access

In the past five years, our distribution network has expanded by 33% from a total length of 40,525 km in FY2016/2017 to 53,733 km by the end of FY 2020/2021. Additional 23,189 km is expected to be added once all schemes under the electrification of sub-counties project are commissioned.

District headquarters: All district headquarters have been connected to the National electricity grid except Buvuma District. The Feasibility Study to connect Buvuma District headquarters to the electricity grid was completed. Government has secured funding for the marine cable to connect the Buvuma district to the National grid.

Electrification of all the 570 Sub-counties to accelerate access is progressing well and is expected to be completed soon.

Electricity Access Level: According to the National Electrification Strategy Study Report (NESSR) 2021, the national electricity access stands at 57% of which, 19% is on the grid and 38% off-grid mainly through solar home systems. The drop in the grid electricity access level from 24% in 2019 to 19% in 2021 was occasioned by the COVID-19 pandemic which impacted commitment of resources towards the implementation of the Electricity Connections Policy and a number of projects were slowed down.

As of March 31, 2022, a total of 348,954 households had received access to electricity under the Electricity Connections Policy (ECP).

To increase the level of electricity access, the Electricty Access Scale-up Project (EASP) has been developed by Government with support from the World Bank aiming to increase access to energy for households, commercial enterprises, industrial parks and public institutions. The Project commencement is planned for FY 2022/2023.

Promotion of Renewable Energy Systems

Biofuel Development and Promotion: The Ministry of Energy and Mineral Development is finalizing the gazetting of the licensing authority and development of Biofuels Regulations to operationalize the implementation of the Biofuels Act 2020. The draft regulations define the minimum blending of biofuels in petroleum products. The regulation further establishes the requirements for licensing procedure for production, storage, blending and transportation of biofuels. The Regulations are expected to be tabled by the Hon Minister before parliament by end of this FY 2021/2022 and onward gazettement.

Development of Busitema 4MW Solar Project: The Government of the Republic of Uganda and the Government of the Arab Republic of Egypt finalized the installation of the 4 MW grid connected solar project at Busitema University.

Promotion of renewable energy is a key program at the Ministry of Energy and Mineral Development

Nationally Appropriate Mitigation Actions (NAMA) on Integrated Waste Management and Biogas in Uganda (NAMA Biogas Project): The Ministry is implementing the NAMA on integrated Waste Management and Biogas Production in Uganda project.

The project which commenced in 2018, aims to reduce greenhouse gas emissions, address pollution to the environment from poor wastewater management, and environmental degradation due to improper and inadequate management and treatment of solid waste as well as agro-processing and municipal wastewater in municipalities in Uganda in the following cities: Mbale, Jinja, Masaka, Mbarara and Kampala City Council Authority.

Promotion of clean cooking in institutions: Under ERT program in preparation for the Energy Scale up Project Clean cooking component the Ministry has finalized a plan to conduct a consultancy service for the energy needs assessment study in over 800 educational and health, prison, police institutions to access the energy cooking needs to feed into the implementation framework for the Energy Access Scale up project (EASP) whose consultancy is expected to commence in March 2022.

Solar fruit driers: The Ministry is under taking studies on installed demonstration solar-bio dryers in Kasese District, in collaboration with Makerere University and LWF. These dryers will be used for quality coffee drying and will serve as a demonstration for the surrounding areas.

Solar street lights: Government installed 60 solar street lights in Nagongera Town Council, Lumino Town Council, Buikwe Town Council, Rwetuha Town Council, and Mukono Municipal Council.

Solar lighting in schools and health units and solar mosquito killers: The Ministry received a grant for demonstrational solar systems from the Hunan Provincial Government of China in 2019 with the main objective of promoting the productive use of solar technologies in Uganda.

Solar Mini Grid: The Ministry of Energy and Mineral Development is planning to commission six fully constructed solar mini-grid plants of Kasenyi 37.23 kW, Kashaka 28.05 kW, Kazinga 26.01kW, Kihuramu 18.36 kW, Kisebere 16.83 kW, and Kisenyi 32.13 kW in Rubirizi and Kasese districts. These solar mini grids were constructed by World Wide Fund for Nature .

 Solar water pumping schemes: The ministry is facilitating 11(eleven) solar water pumping schemes (WSS) that commenced in July 2020 in the areas of: Malere WSS in Kamwenge District, Kyamutunzi WSS in Kyenjojo District, Kiboga WSS in Kiboga District, Katuugo and Kakooge WSS in Nakasongola District, Wol WSS in Agago District, Oyam WSS in Oyam District, Ovujyo WSS in Maracha District, Kacheri WSS in Kotido District, Awoo WSS in Omoro District and Aloi WSS in Alebtong District. These are under construction and are due for completion by May 2021.

Nuclear Energy Development

The Government hosted the Integrated Nuclear Infrastructure Review Mission based on the International Atomic Energy Agency Milestone Approach in November 2021 to evaluate Uganda’s readiness to construct and operate the first nuclear power plant.

The mission concluded that the Government of Uganda is committed to developing the required infrastructure for nuclear power in a coordinated approach with all concerned stakeholders.

Relatedly, progress is being made to build specialized nuclear institutions and conduct preparatory work towards construction of the first nuclear power plant.

Energy Efficiency and Conservation

Government is implementing a number of Energy Efficiency and Conservation Plans, Strategies and Programs for improving Energy Efficiency throughout the Energy Supply Chain, in support of the economic and social development goals of the country. Some of the key undertakings of the Ministry in regarding to the efficient utilization of energy include:

Promotion of alternative and efficient cooking

Government commissioned an alternative fuel study with the objective of identifying key actions to strengthen and create an enabling environment for clean and efficient cooking in Uganda and address the negative environmental and health impacts associated with inefficient cooking methods. One of the outstanding finding is the switch to electric cooking. With the support of the electricity regulator where a cooking tariff was introduced, it is being made possible for grid-connected customers to use electricity for cooking instead of charcoal and firewood.

Promoting energy efficiency among industrialists and SMEs

Government has continued to support the conducting of energy audits among SMEs and large industries with the objective of facilitating the identification of the energy efficient measures that can be adopted to improve energy efficiency.

Regional harmonization of Minimum Energy Performance Standards (MEPS) for lighting appliances, i.e. Lamps and Luminaires

Government through the Ministry of Energy and Mineral Development and the Uganda National Bureau of Standards in close cooperation with the National Standards Bodies in Partner States, developed a framework to harmonize the requirements governing lighting products.

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