Energy is essential for economic development. Severe challenges to the energy supply in Uganda threaten to undermine the country's development. Despite significant public investment in recent years to expand the electricity supply, the problems facing the energy sector still include a severe short-fall in output. This situation is exacerbated by consumers’ inefficient use of the available energy.

In rural areas, access to energy services remains very poor, with only five percent of the rural population connected to an electricity supply. 93 percent still rely on biomass for cooking. The use of solid fuels such as firewood and charcoal remains chronically inefficient throughout most of the country, and this adds enormous environmental problems to Uganda’s energy equation. The greatest contributing factor to this is ignorance of environmental issues. While consumer education measures do exist, they are inadequate to meet the growing need.

GTZ has been implementing its Energy Advisory Project since 1999, but energy as a focal area of German cooperation with Uganda is relatively new. Since August 2007, Energy is a focal area and with a new title namely: Promotion of Renewable Energy and Energy Efficiency Programme (PREEEP). The coordinating role amongst the German organisations in the focal area has been given to GTZ, which has the longest experience in the sector. Several new interventions by GTZ's main partners, the German Development Service (DED), the Centre for International Migration (CIM) and Capacity Building International (InWEnt) are currently being formulated, and some large investments in hydroelectric and distribution infrastructure by KfW Development Bank have been agreed.

The ongoing involvement of GTZ through the Promotion of Renewable Energy and Energy Efficiency Programme (PREEEP) addresses the challenges in the sector by promoting modern technologies, effective policies and a firm resolve to carry out reforms. The interventions so far undertaken include the development and nationwide dissemination of improved, energy-efficient solid fuel stoves, support for solar technologies and micro-hydro power generation, as well as high-profile awareness campaigns on energy efficiency and renewable energy technologies.

The Energy Department of the Ministry of Energy and Mineral Development is often handicapped in its efforts by a lack of resources and suitably qualified staff. The private sector and relevant non-governmental organisations face similar problems. Thus one further, vital aspect of GTZ's involvement is to provide capacity development for the staff of all these players in the sector.