Current state of energy sector in Uganda
The Energy Sector is one of the key sectors in the Ugandan economy. On one side the sector is a major contributor to the Treasury resources (e.g. fuel taxes, VAT on electricity, levy on transmission bulk purchases of electricity, license fees and royalties) and a foreign exchange earner through power exports.
On the other side significant public investment has been injected into the sector, particularly in the area of electricity supply to enhance electricity power supply. It is important to note that the power subsector has attracting the largest private sector investments in the country. Therefore, the sector is not only a vital input into other sectors, but also promises to be a large source of employment for Ugandans.
Of the energy generated in Uganda, traditionally 93 per cent has come from fuel wood, 6 per cent from imported petroleum and 1 per cent from electricity. 6-7 per cent of households are electrified. Only 1-2 % of the rural households use electricity. The rural households depend on fuel wood for their energy supply
The current state of energy sector takes into account the following