Finding Potential Sites for Small-Scale Hydro Power in Uganda: a ...

The Rural Electrification project types that qualify for subsidy assistance from REF canbe grouped into three categories:o Grid extension – Extending the transmission grid to cover a new community isthe cheapest solution when the volume and value of demand justify the cost ofthe new lines through savings of diesel consumption. New concessions are beingcreated for private investors, to further extend the existing UEB grid.o Mini-grids – If demand is not large and the distance to the grid is great, a minigridmay be more cost effective. The mini-grid may be based on; the expansionof agro-industrial generating capacity currently used for self-generation, diesel orrenewable energy capacity.o Photovoltaic (PV) units – PV technology is appropriate for isolated anddispersed electricity requirements. The major disadvantage of PV-systems istheir limited capacity; they are only competitively able to satisfy householdand small commercial requirements, like TV, radio, lights etc. Thus, PVsystemsdo not offer the same scope for rural income generation availablefrom grid-based systems. However, PV may be the only option for isolatedsocial centers, such as schools, clinics etc., and for communities that are farfrom the grid and do not have reliable hydro or biomass supplies.There is also a possibility to receive subsidies from the REF for projects started on owninitiative by for example private companies or village co-operations. The Rural ElectricityFund shall according to the Electricity Act of 1999, consist of significant moneyappropriated by the Parliament, any surplus made from the operations of the ElectricityRegulatory Authority, a 5% levy on bulk transmission sales and donations, gifts,grants and loans from bilateral donors, such as Sida, Norwegian Agency forDevelopment Cooperation (NORAD) and The World Bank.30