The biomass energy sub-sector is the major source of fuel in Uganda, providing over 90% of national energy demand. Biomass energy is mainly used for cooking and space heating. Investments in conventional forms of energy will have limited impact on most people in the country because of the high costs and limited access. Further development of the renewable energy sector to supply modern forms of energy will contribute to improving the livelihood of the rural poor in Uganda. Agriculture, the major source of income and employment in Uganda still relies heavily on iron and stone-age technologies and techniques for farming, harvesting and processing. Development and adaptation of appropriate environmentally sound renewable energy technologies will go a long way in improving the livelihood of rural Ugandans and modernising agriculture. This paper examines past interventions, and discusses some of the energy options that are bound to improve the standards of living and modernise agriculture in Uganda.