Eight small hydropower and renewable energy projects have been selected to benefit from the donor-supported energy program that is expected to generate 85 megawatts (MW) and connected to the national grid.The developer finance agreements have already been signed under the Global Energy Transfer Fee
By Ibrahim Kasita
Eight small hydropower and renewable energy projects have been selected to benefit from the donor-supported energy program that is expected to generate 85 megawatts (MW) and connected to the national grid.
The developer finance agreements have already been signed under the Global Energy Transfer Feed-in Tariffs (GET FiT) jointly developed by Uganda, Germany’s KfW, Electricity Regulatory Authority (ERA and Deutsche Bank Group.
The program is supported by Norway, UK’s DFID, Germany, The European Union and the World Bank. GET FiT program supports hydro, bagasse and biomass project aimed at developing clean and sustainable energy to the national grid by 2015.
Dr. Norbert Kloppenburg, Member of the Board of KfW, explained a first round of requests for proposals this year was conducted during which all project developers holding a power development permit were encouraged to apply.
He said 15 applicants responded and 13 passed the initial review which were subject to a thorough due diligence by independent consultants.
“Based on the reports prepared by these consultants, an Investment Committee, consisting of six independent experts in the field of renewable energy financing, made the decision to support eight of those projects under GET FiT,” he said.
“Together, these eight projects alone are to add about 85 MW of clean, renewable energies to the Ugandan electricity grid.”
Kloppenburg said the total commitments under the first round of GET FiT will be the $56.7m with which $280m of private investments will be leveraged into the sector.
The main purpose of the GET FiT Program Uganda is to fast-track a portfolio of up to 15 small-scale renewable energy generation projects (1MW-20MW) promoted by private developers with a total installed capacity of roughly 150 MW.
This will help to add much-needed clean generation capacity, help to strengthen regional grids and result in emissions reductions of 11 million tons of Carbone-dioxide.
Some of the identified projects include the 5.5 MW Rwimi hydropower plant, the 9.2 MW Nyambwamba hydropower plant both in Kasese and 6.7 MW Nnengo Bridge project in Kanungu and Rukungiri districts.
Ecopower Group of Companies Ltd will develop the Rwimi plant; SAEMS Capita will develop the Nyamwamba project while Jacobsen Electric will develop the Nnengo Bridge project.
Kloppenburg said the GET FiT program has created a momentum through the premium payment that will provided above and beyond the regulatored fee-in tariff.
“In the context and with support of the GET FiT Program important progress has also been made with regard to the standardisation of the industry,” he said.
“I would particularly like to congratulate the regulator, Uganda Electricity Transmission Company (UETCL) and the Government on the recent finalization of the standardized power purchase agreement and implementation agreement.”
He said the agreements will help to reduce transaction costs for investors.
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