Loadshedding will end soon
To Mr. Hilary Obonyo, the Executive Director of Uganda Manufacturers Association. We refer to your letter of January 18, 2006 on availability of power.
To Mr. Hilary Obonyo, the Executive Director of Uganda Manufacturers Association. We refer to your letter of January 18, 2006 on availability of power. Please be advised that the present shortage of electricity, which is likely to escalate before it reduces, is of major concern particularly to the government of Uganda and its agencies such as the Electricity Regulatory Authority (ERA). Steps are being taken to mitigate this unfortunate situation arising principally from the declining lake levels due to a prolonged drought over the catchment area of Lake Victoria and the Kagera River as well as the rising demand due to the booming economic, commercial and social activities of most Ugandans. The following are some of the steps under review/implementation to alleviate the electricity shortage in Uganda.
Short-Term Projects
(i) The Electricity Regulatory Authority is processing applications from three investors, one of which will be issued with a Build Operator Transfer (BOT) license in two to three weeks’ time, to generate about 50MW of electricity using HFO thermal generator to be located at Mutundwe in Kampala. Generation could start within six or so months but definitely in 2006.
(ii) The government together with its agencies are examining the possibility of inviting investors to bid to supply 50MW of thermal generated electricity on a Build Own Operate (BOO) basis based at either Namanve or Lugogo for at least 12 months. This could be available within two to three months. Note that Short-term BOO machines are normally diesel-based and hence quite expensive in terms of consumer tariffs.
Medium-Term Projects
(i) The Government through World Bank support is seeking to invite investors to bid to supply 100MW of thermal generated electricity at Namanve and Lugogo. This could take 12 to 18 months, but will be based on HFO and will most likely be a BOT.
(ii) The bagasse based 16MW from Kakira Sugar Works (1985) Ltd. should be on stream by early 2007 or in 12 months. The license and Power Purchase Agreements were issued mid last year, and the company reports good progress with the project implementation.
(iii) SN Power Invest is progressing well with its feasibility studies at Waki and Bugoye hydro sites. It is expected both sites will provide at least 15MW of cheaper hydro electricity within 24 months from now.
(iv) The IPS led 55MW hydropower project at Nyagak in West Nile is due for ground breaking in early February 2006. All is ready for this project and power will flow in parts of West Nile from the project by 2008.
Long-Term Projects
(i) The IPS led consortium is working hard to reach financial closure for the 250MW hydropower project at Bujagali. All appropriate agreements have been approved and signed. It is expected that this power will be available in the grid by 2010.
(ii) The Norpak led project for the 200MW hydropower project at Karuma will be kick-started as soon as the Financial Closure and the Engineering Contract for Bujagali gets under way. It is expected this process will start by July 2006, but power from Karuma will flow onto the grid perhaps in 2012.
(iii) ERA will at the end of January 2006 issue a permit to one of the four companies that have bid to develop the 10MW hydropower project at Ishasha. Power from this site is also expected around 2009 to be flowing to the national grid.
The above are but a few of the steps being taken to mitigate the present electricity shortage. We hope the members of UMA will start planning to consume the rather large amounts of electricity coming our way especially around 2010. In the meantime we appeal to them to conserve through improving their industrial motor power factor, carrying out energy audits to eradicate waste in their systems and to assist the utility by avoid power thefts while paying their bills promptly.
The writer is the Chief Executive Officer of ERA
Short-Term Projects
(i) The Electricity Regulatory Authority is processing applications from three investors, one of which will be issued with a Build Operator Transfer (BOT) license in two to three weeks’ time, to generate about 50MW of electricity using HFO thermal generator to be located at Mutundwe in Kampala. Generation could start within six or so months but definitely in 2006.
(ii) The government together with its agencies are examining the possibility of inviting investors to bid to supply 50MW of thermal generated electricity on a Build Own Operate (BOO) basis based at either Namanve or Lugogo for at least 12 months. This could be available within two to three months. Note that Short-term BOO machines are normally diesel-based and hence quite expensive in terms of consumer tariffs.
Medium-Term Projects
(i) The Government through World Bank support is seeking to invite investors to bid to supply 100MW of thermal generated electricity at Namanve and Lugogo. This could take 12 to 18 months, but will be based on HFO and will most likely be a BOT.
(ii) The bagasse based 16MW from Kakira Sugar Works (1985) Ltd. should be on stream by early 2007 or in 12 months. The license and Power Purchase Agreements were issued mid last year, and the company reports good progress with the project implementation.
(iii) SN Power Invest is progressing well with its feasibility studies at Waki and Bugoye hydro sites. It is expected both sites will provide at least 15MW of cheaper hydro electricity within 24 months from now.
(iv) The IPS led 55MW hydropower project at Nyagak in West Nile is due for ground breaking in early February 2006. All is ready for this project and power will flow in parts of West Nile from the project by 2008.
Long-Term Projects
(i) The IPS led consortium is working hard to reach financial closure for the 250MW hydropower project at Bujagali. All appropriate agreements have been approved and signed. It is expected that this power will be available in the grid by 2010.
(ii) The Norpak led project for the 200MW hydropower project at Karuma will be kick-started as soon as the Financial Closure and the Engineering Contract for Bujagali gets under way. It is expected this process will start by July 2006, but power from Karuma will flow onto the grid perhaps in 2012.
(iii) ERA will at the end of January 2006 issue a permit to one of the four companies that have bid to develop the 10MW hydropower project at Ishasha. Power from this site is also expected around 2009 to be flowing to the national grid.
The above are but a few of the steps being taken to mitigate the present electricity shortage. We hope the members of UMA will start planning to consume the rather large amounts of electricity coming our way especially around 2010. In the meantime we appeal to them to conserve through improving their industrial motor power factor, carrying out energy audits to eradicate waste in their systems and to assist the utility by avoid power thefts while paying their bills promptly.
The writer is the Chief Executive Officer of ERA