Legislation will create incentives like tax rebates, which
will encourage investors to develop biofuels.
The Uganda cabinet has approved the Biofuels Bill 2015, and
authorised the Minister of Energy and Mineral Development, Irene Muloni, to
have it gazetted and introduced to Parliament for debate and enactment.
The Bill provides for the provision of regulations for the
production of biofuels feedstock, production of biofuels storage,
transportation, blending in petroleum products and their usage.
As the Bill gets into Parliament, it has been noted that
even if Government has the Renewable Energy Policy 2007, in place, which
provides for the blending of biofuels with fossil fuels (Petroleum Fuel) in
regulated proportions, oil marketing companies have not shown strong enthusiasm
to prepare for blending of the fuels when the products become available.
The Renewable Energy Policy, provides for compulsory
blending of biofuels with fossil fuels up to 20 percent of the former
component.
When Uganda starts local production of Petroleum products by
2018, blending will enhance the life of the country’s oil fields through
partial substitution.
“Access to modern forms of energy transforms people. It
changes the way they behave, improves their levels of productivity and
liberates the marginalised in society. So sustainable energy for all will
result in improving service delivery,” said Irene Muloni, the Minister for
Energy and Mineral Development at a symposium on ‘Universal Energy access to
Uganda’.
Muloni said the government put in place the renewable energy
policy, which aims at increasing the share of renewable energy from four per
cent in 2007 to 61 per cent by 2017.
This should lead to decrease in fuel wood usage that
accelerates deforestation and is also associated with land degradation, and
ill-health due from indoor pollution. Uganda loses 6,000 hectares per annum of
forest due to over-dependence on firewood and charcoal.
Therefore, the introduction of biofuels in the energy sector
mix will enhance the country’s energy security through short gestation projects
using locally produced biofuels leading to increased investments.
The Bill, will also enable more investments into biofuels,
which requires legislation. Legislation will enable the developers to access
long term finance, which is required in the biofuels industry. In addition,
Legislation will create other incentives like tax rebates which will encourage
investors to develop biofuels.
In respect of agriculture and rural development, one of its
pillars is the enhancement of agro-processing and marketing. The production of
biofuels feed stock shall increase rural earnings, whereas, the utilisation of
biofuels in powering decentralized agro-processing units shall increase
employment opportunities and value addition.
Biofuels production and utilization provide for cleaner and
environmentally friendly fuel for industrial purposes, cooking, transport and
power generation. Uganda is a signatory to the Kyoto Protocol and this is a
step towards reduction of greenhouse gas emissions and contributes to the global
fight against climate change.
No comments:
Post a Comment