In the past, Uganda as a country suffered greatly from a big
challenge known as load shedding. This is a situation in which
electricity demand exceeds supply resulting in rationing of power to meet the
country’s energy goals. Load shedding negatively impacts the economy not to
mention the livelihood of citizens as well as the survival of businesses.
Presently, the situation is much better than before and this
can be attributed to a number of things including the energy sector reforms in
2001 that led to the disintegration of the Uganda Electricity Board into
generation, transmission, distribution and regulation as stand-alone entities. This
move appears to have been the biggest catalyst towards the near elimination of
load shedding in the country. Uganda currently has an installed generation
capacity of about 800MW with the peak demand not hitting 600MW. This simply
means that we generate more power than we can use hence the near extinction of
load shedding.
It would be very impetuous to believe the situation will
remain this way forever. Even a big economy like South Africa is now suffering
greatly from load shedding due to significant load growth. According to the National
Development Plan (NDP), Uganda’s peak power demand is rising at about 22.7% per
annum. At this rate, Uganda shall not be able to meet its peak demand in not
more than 2 years. The question then becomes, “How do we arrest the possibility
of falling back into the evil that is load shedding?”
The most sustainable
solutions in the long term would be increasing energy production for example
the Karuma HPP under development, and building more efficient transmission and
distribution systems. High efficiency transformers, superconducting
transformers and high temperature superconductors are new technologies which
promise much in terms of electrical energy efficiency as new techniques are
being studied. It is worth noting that these are all very capital intensive
projects that take a number of years to be completed. As a simpler and yet
possibly effective alternative in the short term, the government can put in
place policies to reduce the country’s peak demand. One policy is putting in
place a high unit cost of electricity in the peak hours and a significantly lower
cost for the off peak hours. Whereas this is already done for industrial installations,
it can be extended to the residential households too since during the peak
hours their aggregate demand contributes significantly to the peak demand. In
so doing, peak demand is reduced and load shedding postponed at least till the
new energy producers are functional.