Uganda hydropower developments

Last Updated 15 years ago by Kenya Engineer

With the commissioning of the Bujagali hydropower project later this year Uganda will have an additional 250 MW of power fed into its national grid. The next major  planned hydropower development is at Karuma Falls, 150 m downstream of Owen Falls.

A number of international firms have expressed interest in the construction of the $1.3 billion facility. So far.  28 firms have indicated their willingness to participate. A team from the Ministry of Energy is reviewing the expressions of interest and will be drawing up a shortlist within the next month. Construction work is expected to commence in July on a complex hydropower plant with an underground facility of 600 MW from  five turbines.

The Karuma project will be funded by the Uganda government as a public project as opposed to an Independent Power Producer (IPP) like Bujagali. Funds will be from the ring-fenced Energy Investment Fund set up in 2006/2007 and managed by the Central Bank. Ministry of Finance officials said the Energy fund is now at $190 million and is expected to grow  to $1 billion within five years ending next financial year.

But this is but one of the avenues through which funds can be raised for the project. The government is also considering offshore financing from development partners.

Another smaller hydro power dam, Isimba (100MW) is being developed as well as several other mini hydro stations across the country.

Uganda now generates a total of about 240MW against a national demand of about 350MW, which is said to be growing at 30 per cent annually. There are plans underway to expand thermal power production, now at a 100MW, to meet the crippling deficit but those plans are stymied by the ever rising cost of fuel on which thermal depends and inexorable adverse environmental impact of thermal power.

The government hopes to overcome the cost factor by producing Heavy Fuel Oil domestically from a limited refining of crude produced in western Uganda. That production is to start in the second half of 2009, according to government.

The power distributor, Umeme, had applied to the Uganda Electricity Regulatory Authority, ERA to allow it to increase consumer tariffs this year but the authority has balked at the request, suggesting instead that they should in fact be lowered.

“Improved efficiency measures, like; the use of solar photovoltaic and solar water heaters; biogas and production of electricity from municipal waste for sale of power into the grid will be enhanced,” Mr Museveni said.