Q&A: Uganda needs clear policies to unlock renewables

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Uganda's government should establish clear, consistent, and supportive policies to boost renewable energy. Waibi Edson, a Technical Advisor at GiZ Uganda, told Renewables Rising that this includes seriously considering feed-in tariffs. These would guarantee a market for renewable energy generation, particularly benefiting smaller projects.

• Mr Waibi holds a bachelor's in statistics and a master's degree in energy economics. He has over five years of experience working in the energy sector and also lectures in business at Makerere University.

• Developing renewable energy generation capacity is ineffective without upgrading the power infrastructure. These two aspects must be developed in tandem.

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Please tell us about you and your work.

Mr. Waibi: Well, I work as a technical advisor, primarily supporting the German development agency, GIZ, and their partner government ministries here in Uganda.  Primarily, I provide expert guidance and support to projects initiated by GIZ that are closely aligned with the strategic objectives of the Ugandan government. 

This often involves working directly with various government ministries, helping them to navigate the technical complexities and policy frameworks surrounding renewable energy and energy efficiency investments. Essentially, I ensure that the technical aspects of these projects are sound and contribute effectively to Uganda's energy goals. Though I recently moved to the water department.

You're involved in capacity building for Renewable Energy investments. What are some of the main knowledge gaps or areas where capacity needs strengthening in Uganda?

Mr. Waibi: That's a crucial question. There are several areas. One significant gap lies in data management and validation for energy economy modelling. Reliable data is the bedrock of effective planning and investment, and ensuring its accuracy and consistency is a challenge. 

Furthermore, there's a need to strengthen the technical expertise within local institutions to effectively manage and maintain renewable energy infrastructure, such as grid connections for independent power producers. Financial literacy and project development skills for local investors in the renewable energy sector also require significant strengthening to encourage greater domestic participation.

How can Uganda attract more private sector investment in renewable energy projects? 

Mr. Waibi: Attracting private sector investment requires a multi-pronged approach. Firstly, the government needs to establish clear, consistent, and supportive policies, including seriously considering feed-in tariffs that guarantee a market for renewable energy generation, especially for smaller projects. 

Secondly, a stable and reliable grid infrastructure is paramount; investors need confidence that they can connect and sell the power they generate. Addressing the current inconsistencies in data regarding energy access is also crucial for building investor confidence. 

Moreover, ensuring that investment policies are as favourable to local Ugandan investors as they are to foreign entities would unlock significant domestic capital. Public-private partnerships can develop and deliver large-scale projects, as demonstrated by hydropower projects like Karuma and Bujagali. The government can play a vital role in de-risking large-scale projects to attract more private participation.

Given that you support renewables, and Uganda is exploring oil resources. What's your take on this?

Mr. Waibi: It's a complex balancing act. While my focus is on promoting renewable energy and energy efficiency for a sustainable future, I understand Uganda's interest in exploring its oil resources for potential economic development and job creation, particularly given the high unemployment rates. 

However, it's crucial that this exploration is undertaken with the utmost consideration for environmental impact, especially in sensitive areas like Murchison Falls. Ideally, revenues generated from oil could be strategically channelled to support a green transition and build a robust renewable energy infrastructure for the long term. The key is to find a win-win scenario where economic progress and environmental sustainability are not mutually exclusive.

As an advisor, what would you tell those interested in investing in the energy sector in Uganda?

Mr. Waibi: For anyone looking to invest in Uganda's energy sector, I would say that it presents a significant green field of opportunity. The government is generally fair to investors, and labour costs are relatively low. There's a substantial untapped potential in renewable energy sources like biomass and geothermal. 

However, it's essential to be mindful of the challenges, such as the need for a more robust grid infrastructure and consistent government policies. Exploring public-private partnership opportunities can be a viable route for larger projects. For smaller-scale renewable energy ventures, understanding the affordability of solutions for the local population and the potential for pay-as-you-go models is crucial.