Much of the electricity network in Uganda is at present poorly maintained and the country experiences frequent power cuts. Just 3-5 percent of the population have access to electricity and many towns, especially in the North of the country are without electrical power. In the rural areas only about 2 percent had access to electricity, of which less than half was provided through the national grid, the remainder coming from household generators, car batteries or solar photovoltaic (PV) units. About 97% of Uganda's population do not have access to electricity.
Uganda will require 2,000 Megawatts (MW) electricity by the year 2025 to run its industries and homes. To achieve this, more than $3.5 billion (about Shs623 billion) will have to be sourced and spend in the energy sector. Within 20 years from now the country must generate an additional 1700MW to meet its demand capacity. Uganda is currently facing a huge electricity supply deficit, as over 90 percent of the country's population is not connected to the national grid.
The installed capacity in Uganda is about 300 MW, over 98 percent of electricity is generated by the hydroelectric plant at Owen Falls (the 180 MW Nalubaale station and the 200 MW Kiira station with five 40 MW units of which three have been installed) on the Victoria Nile. There exists a small hydro power station at Maziba with an installed capacity of about 2 MW and independent power generation at Kilembe Mines and Kasese Cobalt Ltd with a combined capacity of over 15 MW. It has been estimated that there is another 80 MW of privately installed captive generation capacity.
The previously wholly government-owned utility, the Uganda Electricity Board (UEB) is the organisation that is responsible for supplying electrical power in Uganda. The Ugandan government had pursued a reform programme of the organisation since 1999, but its privatisation only came into effect in 2000. The restructuring of the utility resulted in the UEB being divided into separate business units, under the sections of power generation, transmission and distribution. The aims of the privatisation were to increase private investment in the electrical power sector, to meet increasing demand for electricity and extend power supply to more areas in Uganda, and to improve quality and reliability of the electrical power supply.
The UEB is now focusing on identifying available sites that hold micro hydro potential. The UEB had developed two sites of hydropower generation and private developers another two. These sites include Mubuku II (5 MW), Kisizi (0.075 NIW) and the 1.25 MW Kikagati station (which has now been decommissioned). Paidha (7.5 MW), and Ishasha (4.5 MW) are in the process of planning.
A number of projects have been initiated to improve Uganda’s power supply and increase access to electricity.
The Bujagali hydropower project is a 250MW hydro-electric power plant that is in the process of being constructed in the Jinja district. Since there is presently a 100MW shortfall in electrical power, the plant will serve to improve this. The project was initially proposed to commence in January 2003, but was delayed due to various constraints. However, in February 2005, the Ugandan government, with financial backing of the World Bank had given the go-ahead for the project and construction is to commence in December 2006. The cost of the project will be US$ 500 million and is due to be operational in 2008.
The Bujagali power plant was originally proposed to be powered by four turbines located on a rockfill dam. The power plant is planned to be built 1,100m above sea level at Bujagali Falls, about 8km north of Lake Victoria, which is the source of the Nile. The low-pressure river power plant will hold a vertical drop of 30m and total installation capacity of 250MW. It is envisaged to be linked to the existing Owen Falls plant, as well as to the capital city of Kampala over the grid. A 100km transmission line to Kampala and Owen Falls with two substations is also planned for the project.
The Bujagali hydropower project upon its completion would be one of a number of hydroelectric power plants scattered along the upper reaches of the Nile. There are also hydro-electric projects at Owen Falls, Busowoko, Ralangala, Raruma, Ayago North, Ayago South and Murchison Falls.
Uganda stands to benefit under the West Nile Electrification Project, whereby the West Nile Rural Electrification Company (WENRECo) has implemented an 18-hour electricity supply to Arua and Nebbi districts. With a population of about 1.5 million, this area is set to receive a boost to its economic activities through enhanced adequate and affordable electrical power supply. The company would take advantage of operational characteristics of the newly-installed 1.5MW heavy fuel oil plant as well as apply prudent load management practices with a view to extending supply. Kenya is also exporting 10 megawatts of electricity a day to Uganda to alleviate power rationing that has hit the neighbouring country.
The Ugandan Government has set aside US$100m (about sh180b) for the construction of another hydro-electricity power station and will provide about sh2.6b to Kilembe Mines Investment to extend power to rural areas in the Kasese district. A power line would start from Kikorongo to Mpondwe on the DR Congo border and another one would begin from Kiburara to Kisinga and other mountainous sub-counties. The sh2.6b will be 50% of the costs of the power project. Uganda's Kanungu district will get a 150-kilometre power line worth Shs2.6 billion, in May 2005. This will be the first time Kanungu gets electricity from the national grid, and will encourage increased economic activity in the district, supporting processing of coffee, maize and rice, the main cash crops in the district. It will also boost industries like Kayonza Tea Factory, which currently spends over Shs500 million a year on a generator, and Kambuga Hospital, which spends over Shs200 million. The line is being connected from the main power grid in Rukungiri district and would pass through the sub-counties of Kayonza to Kanyantorogo up to Kanungu district headquarters. Another line will go through Kanyantorogo, Kihihi and Kambuga sub- counties, and connect back to the main grid in Rukungiri.
The Japanese government is to construct small hydropower projects in Uganda especially in rural areas so as to develop the country. Japan is also considering investing in larger hydropower projects in Uganda, but would first look for financiers.
The construction of Karuma hydropower project is underway and is to commence in September 2007, as well as a 10-12 MW hydropower station is also planned at Muzizi.
With the help of the World Bank, the Ugandan government have established the Fourth Power Project which aims to improve power supply and meet rising demand by supporting least-cost investments. The project comprises a power system expansion and rehabilitation programme, whereby an installation of two 40 MW generating units (units 14 and 15) will take place at the existing Kiira hydro power station, a rehabilitation of Nalubaale (formerly Owen Falls) sub-stations will also take place, as well as a rehabilitation of existing transmission sub-stations.
Uganda has begun the process of supplying 480,000 rural residents with electricity by 2012 with the help of the Energy for Rural Transformation programme. With the financial support of the World Bank, rural households will be able to receive an increased access to adequate and reliable power supply.
Other companies have also taken the initiative to execute electrical power projects in South Africa.
Hydromax has planned power generation of 10MW at Buseruka, Hoima and plans to distribute power to Hoima Masindi and Kibaale. Kilembe Investment Ltd has invested in the in distribution of power in Kasese and north western Bushenyi. Mt. Elgon Power Company Ltd is developing 12MW from 5 sites in the Mount. Elgon ranges so that electrical power can be exported to the grid. The Norwegian Power Group (SN Power Invest AS, Alston and Norplan) is planning to develop four power plants up to 40MW at Waki, Muzizi, Nengo Bridge and Mubuku. These are planned hydropower plants that are connected to the Nile River. The Uganda Sustainable Energy Company (USEC) is planning to develop a micro-hydropower project at Nyamabuye, Kisoro District and distribution of power to Kisoro and Kabale districts. The Sugar Corporation of Lugazi generation project comprises the installation of 8.6MW from bagasse co-generation. 3.7MW are to be sold to the grid. Possible expansion to 16MW in future.7.4MW could be sold to the grid. The Electricity Distribution Management (EDM) of Namibia is planning a 20MW hydro power plant at Nshungyezi, R. Kagera and a 2.25MW mini-hydro plant at Kikagati, R. Kagera. Electrical power will be distributed in the districts of Mbarara & Ntungamo.
Uganda is also part of the Nile Equatorial Lakes (NEL) Subsidiary Action Programme. The program consists of various projects that will provide the prospect of alleviating power shortages, and the prospect of assisting in the development of rural electrification programs.
The NEL projects are:
The Hydro-power Development and Power Trade initiative incorporates the participation of Burundi, DRC, Kenya, Rwanda, Tanzania, Egypt, Sudan and Uganda. The program encompasses sub-programs divided into six separate projects. The Long-term objectives of the program are:
- to achieve regional economic development and provision of an adequate supply of power;
- to increased regional power supply in the NEL Region by improving export/import capabilities between NEL member countries; and
- to achieve improved reliability of electrical power supplies and the quality of power delivered through interconnecting the networks are presently isolated in each country.
Ranking and Feasibility Study of Hydroelectric power options in the NEL region, focuses on the countries of Burundi, DRC, Kenya, Rwanda, Tanzania, Uganda, Egypt and Sudan. The objective of the project is to rank proposed hydropower development options that are larger than 50 MW with an aim of supplying the future interconnected transmission system of the Nile Equatorial Lakes (NEL) region. In the second phase feasibility studies will be carried out on one or two promising hydropower development and transmission options.
An interconnection link between Kenya and Uganda has been planned. The project foresees the strengthening of the existing interconnection between Kenya and Uganda, which allow for more power to be exported from Uganda to Kenya.
An interconnection link between Uganda and Rwanda has also been planned. The aim of the project is to establish an interconnection link between Mbarara in Uganda and Gikonda in Rwanda, to expand and strengthen the grids in northern Rwanda and south western Uganda, and facilitate exchange of power.
