ENERGY

The energy sector plays a central role in Uganda’s economy. It is the engine for economic growth and development, and a vital input into all the produc- tive and social sectors of the economy.

The major sources of energy in Uganda are bio- mass, petroleum and hydro-electricity. These pro- vide approximately 96.5 percent, 1.5 percent and two percent, respectively8

of the total energy con-

sumed in the country. Other renewable sources of energy contribute negligibly to the national energy balance. The level of electrification in the country is very low, with only about five percent of the entire population connected to national grid. In the rural areas, where more than 85 percent of the popula- tion live, only about one percent of the households are connected to the national power grid, and a few others get part of their energy needs through household generators, batteries and solar photo- voltaic (PV).9

In terms of natural resources endowment, the country is blessed with a variety of energy re- sources. These include abundant biomass and water resources, ideal solar conditions, peat, geo-

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