Energy ministry to woo more investors
Oct 24, 2007
THE energy ministry has changed its strategy to increase electricity supply and generations that will see load-shedding disappear next year.
By Ibrahim Kasita
THE energy ministry has changed its strategy to increase electricity supply and generations that will see load-shedding disappear next year.
Among the strategies is to tackle demand for electricity head-on instead of the old approach of chasing demand from behind.
The current electricity capacity is at 255 mega watts yet the demand is at 380 mega watts during day time.
But energy experts say that with the strategy of attracting more private investors in the sector, electricity shortage will be solved. The move is expected boost economic growth.
“Our instructions from the Government leadership are to the effect that we should never chase demand. We should always have surplus generation capacity in place,†said a senior energy official.
“This will not only enable us to cater for the desired pace of economic development but also ensure that electricity ultimately reaches every part of the country as directed by the President.â€
The official explained that the leadership in the energy sector was doing whatever it takes to diversify sources of power supply with a view to increasing supply and delivering power at affordable tariffs.
Already the Norwegian firm, Jacobsen Electro AS, has started works at Namanve to build, operate, and transfer a 50-megawatt heavy-fuel thermal plant.
Uganda’s first independent power producer Electro-Maxx was granted a feasibility permit and is in the verge of starting civil works at Tororo for a 10-mega watt heavy-fuel thermal plant.
“The ministers in the ministry of energy have addressed several meetings to appeal to the business community to invest in the energy sector. We hope they will respond,†added the official.
Several private companies have been licensed by the Electricity Regulatory Authority with the full support of the Government.
These include West Nile Rural Electricity Company in West Nile, Eco Power for the Ishasha hydro site and China Shang Sheng International for the Kikagati hydro site and Aggreko International projects for both Lugogo and Kiira thermal plants
There are also several developers carrying out feasibility studies after having obtained permits as required by law.
Many of them are looking for direct the Government support through the Rural Electrification Fund, the Private Sector Foundation.
and direct support in some cases.
Other private firms granted permits for the Independent Power Producer projects include Kakira Sugar Works for a 12MW cogeneration project, Hydromaxx, Invespro for a 50MW thermal plant, Electro-Maxx for a 10MW heavy fuel oil thermal plant.
Others include Norpak, the core investors in the 200MW Karuma hydropower project, Energy Systems for Africa for solar project, SN Power, China Shang Sheng, Energy Power Developments for Biomass and Waster, and Aldwych International.
However, experience has shown that many would-be electricity project developers are delayed by absence of long-term finance in the country for such projects.
This could be due to the fact that most local banks do not have adequate leverage for financing long-term projects typical of the electricity sector.
THE energy ministry has changed its strategy to increase electricity supply and generations that will see load-shedding disappear next year.
Among the strategies is to tackle demand for electricity head-on instead of the old approach of chasing demand from behind.
The current electricity capacity is at 255 mega watts yet the demand is at 380 mega watts during day time.
But energy experts say that with the strategy of attracting more private investors in the sector, electricity shortage will be solved. The move is expected boost economic growth.
“Our instructions from the Government leadership are to the effect that we should never chase demand. We should always have surplus generation capacity in place,†said a senior energy official.
“This will not only enable us to cater for the desired pace of economic development but also ensure that electricity ultimately reaches every part of the country as directed by the President.â€
The official explained that the leadership in the energy sector was doing whatever it takes to diversify sources of power supply with a view to increasing supply and delivering power at affordable tariffs.
Already the Norwegian firm, Jacobsen Electro AS, has started works at Namanve to build, operate, and transfer a 50-megawatt heavy-fuel thermal plant.
Uganda’s first independent power producer Electro-Maxx was granted a feasibility permit and is in the verge of starting civil works at Tororo for a 10-mega watt heavy-fuel thermal plant.
“The ministers in the ministry of energy have addressed several meetings to appeal to the business community to invest in the energy sector. We hope they will respond,†added the official.
Several private companies have been licensed by the Electricity Regulatory Authority with the full support of the Government.
These include West Nile Rural Electricity Company in West Nile, Eco Power for the Ishasha hydro site and China Shang Sheng International for the Kikagati hydro site and Aggreko International projects for both Lugogo and Kiira thermal plants
There are also several developers carrying out feasibility studies after having obtained permits as required by law.
Many of them are looking for direct the Government support through the Rural Electrification Fund, the Private Sector Foundation.
and direct support in some cases.
Other private firms granted permits for the Independent Power Producer projects include Kakira Sugar Works for a 12MW cogeneration project, Hydromaxx, Invespro for a 50MW thermal plant, Electro-Maxx for a 10MW heavy fuel oil thermal plant.
Others include Norpak, the core investors in the 200MW Karuma hydropower project, Energy Systems for Africa for solar project, SN Power, China Shang Sheng, Energy Power Developments for Biomass and Waster, and Aldwych International.
However, experience has shown that many would-be electricity project developers are delayed by absence of long-term finance in the country for such projects.
This could be due to the fact that most local banks do not have adequate leverage for financing long-term projects typical of the electricity sector.