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Formulating Geothermal Energy Policy, Legal and Regulatory Framework

Uganda_geothermal
This technical assistance advances the following Sustainable Development Goals: 

Affordable and clean energy

Goal7
Affordable and clean energy

Decent work and economic growth

Goal 8: Decent work and economic growth
Goal8
Decent work and economic growth

Climate action

Goal 13: Climate action
Goal13
Climate action

This Technology Transfer Advances Uganda's

  • Nationally Determined Contribution to "increase the amount of renewable energy capacity by at least 1,100 Mega Watts compared to business- as- usual by 2030, generating an estimated 4.6 - 5.2 Tera watts (TWh) (million watts) more than in the business-as-usual scenario case. Technologies include hydro, solar, biomass and geothermal".

Context

Geothermal technology has the potential to provide affordable, efficient, low-emission, large scale, renewable power to Uganda. Indeed, Uganda has an estimated potential of approximately 450 MW of untapped geothermal energy.  However, the Ugandan geothermal market is still in its infancy and faces major barriers, including limited private investment and a lack of a clear and coherent geothermal policy, legal, regulatory and institutional framework. 

Technology Request

Uganda's Ministry of Energy and Mineral Development requested support in drafting a geothermal policy, law and to review existing supporting policies and regulations with the intent of attracting private sector investments while maintaining cost effective power supply costs

    CTCN Support

    The CTCN and partner Carbon Counts provided the following technology assistance in Uganda

    • Background analysis of of existing policies, laws, and regulations impacting geothermal development, as well as a review of the geothermal resources available and challenges for geothermal development in Uganda
    • Conducted stakeholder analysis to inform analysis, draft laws and regulations
    • Developed recommendations for new geothermal policy and improvements to existing regulations, including a stakeholder engagement plan
    • Draft geothermal policy: Based on inputs from stakeholders and background analysis, experts drafted the geothermal policy including an approach for developing geothermal at national level and  framework/basis for developing the draft law. The draft policy includes a monitoring and evaluation plan/component for assessing the effectiveness of the new law and regulations.
    • Draft proposed Geothermal Energy Law: Technical experts drafted an outline of the geothermal law, highlighting key components informed by the geothermal policy.
    • Draft proposed Supporting Laws and Regulations

    For more detailed information, please refer to full project documents under the documents section below.

    Relevant Technologies and Approaches

    Expected Impact

    Short term

    • Report evaluating existing policies, laws, and regulations that impact geothermal development
    • Report recommending the content of the new geothermal policy, law and regulations based on the review of existing policies, laws, and regulations in Uganda as well as a review of countries with mature geothermal markets
    • Creation of a stakeholder community, informed by analysis of the private and public sector engagement in geothermal development and the holding of several in-person and virtual stakeholder meetings
    • Proposed geothermal policy, law and regulation as well as institutional framework 
    • Monitoring and evaluation plan for assessing effectiveness of new law and regulations

    Medium term

    • Accelerated geothermal resource development for the benefit of all Ugandans
    • Reduce barriers to investments in renewable energy (geothermal) in Uganda, fostering the deployment of renewable clean energy technologies (geothermal power plants) in the country and enabling the country mitigating future GHG emissions from new power generation in the country, thereby supporting low carbon development.
    • Creation of an enabling environment for investments in geothermal power generation
    • Support to the country’s low carbon development objectives
    • Strengthening of the Geothermal Resources Unit, Ministry of Energy and Mineral Development 

    Long term

    • Establishment of a diverse, secure, clean, reliable and affordable mix of power generation capacity to support economic and social development
    • Development of geothermal resources offers a range of potential local benefits. As well as providing a localised source of reliable and affordable electricity, direct uses of geothermal heat provides a number of potential economic opportunities. These include use of geothermal heat for food processing (e.g. drying of agricultural products and fish; milk pasteurisation), local amenities (e.g. communal laundries), fish farms, greenhouses (night heating to enhance growing), balneology (bathing) and health spas. All of these activities offer opportunities to increase the socio-economic wellbeing of local communities in proximity to the resource and create new economic opportunities for local people

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