Israeli firm wants to provide 100MW
Jun 18, 2008
ISRAELI firm, Invespro, has initialed a power purchase agreement with the Uganda Electricity Transmission Company (UETCL) to build, own and operate a 100 megawatt heavy-fuel thermal plant.
By Ibrahim Kasita
ISRAELI firm, Invespro, has initialed a power purchase agreement with the Uganda Electricity Transmission Company (UETCL) to build, own and operate a 100 megawatt heavy-fuel thermal plant.
This means the two parties have agreed on the terms and conditions of the agreement, but not yet officially endorsed them.
The firm, a subsidiary of GreenJewell (Uganda) Ltd, is a joint venture between IPL Skandivanvian of Sweden and MAN B&W of Germany.
Eriasi Kiyemba, the UETCL managing director, said they were negotiating with Invespro.
“This is part of medium-term interventions to replace diesel-powered thermal plants with heavy-fuel oil plants to keep electricity prices down,†he explained.
“Our plan is to have about 260MW of heavy-fuel electricity before Bujagali is commissioned.â€
Invespro has invited oil firms to submit bids for the supply of heavy-fuel oil for the plant, which will be located in Njeru, Mukono district.
In 2006, Invespro applied to the Electricity Regulatory Authority (ERA) for a 10-year generation licence. The plant was supposed to be online six months after acquisition of the licence.
ERA awarded Invespro a permit to carry out feasibility studies on the project’s economic and environmental impact.
Invespro has to finalise a power purchase agreement with UETCL before a generation licence is issued.
The Israeli firm intends to use internally-generated funds for the project, a situation that will free the Government from mitigating capital risks.
Already, a local independent power firm, Electro-Maxx, has started work on the 10MW plant in Tororo and electricity is expected in October.
Norwegian firm, Jacobsen Elektro, is installing a 50MW plant in Namanve and initial power is expected in August.
Tullow Oil, the firm exploring oil in western Uganda, will start generating 100MW next year. Jacobsen has been awarded the contract to build the plant.
All these plants will use heavy-fuel oil.
Another plant is expected in two months in Mutundwe and will generate 50MW of thermal power.
Uganda requires 380MW but only 255MW are generated, creating a shortage of about 125MW.
ISRAELI firm, Invespro, has initialed a power purchase agreement with the Uganda Electricity Transmission Company (UETCL) to build, own and operate a 100 megawatt heavy-fuel thermal plant.
This means the two parties have agreed on the terms and conditions of the agreement, but not yet officially endorsed them.
The firm, a subsidiary of GreenJewell (Uganda) Ltd, is a joint venture between IPL Skandivanvian of Sweden and MAN B&W of Germany.
Eriasi Kiyemba, the UETCL managing director, said they were negotiating with Invespro.
“This is part of medium-term interventions to replace diesel-powered thermal plants with heavy-fuel oil plants to keep electricity prices down,†he explained.
“Our plan is to have about 260MW of heavy-fuel electricity before Bujagali is commissioned.â€
Invespro has invited oil firms to submit bids for the supply of heavy-fuel oil for the plant, which will be located in Njeru, Mukono district.
In 2006, Invespro applied to the Electricity Regulatory Authority (ERA) for a 10-year generation licence. The plant was supposed to be online six months after acquisition of the licence.
ERA awarded Invespro a permit to carry out feasibility studies on the project’s economic and environmental impact.
Invespro has to finalise a power purchase agreement with UETCL before a generation licence is issued.
The Israeli firm intends to use internally-generated funds for the project, a situation that will free the Government from mitigating capital risks.
Already, a local independent power firm, Electro-Maxx, has started work on the 10MW plant in Tororo and electricity is expected in October.
Norwegian firm, Jacobsen Elektro, is installing a 50MW plant in Namanve and initial power is expected in August.
Tullow Oil, the firm exploring oil in western Uganda, will start generating 100MW next year. Jacobsen has been awarded the contract to build the plant.
All these plants will use heavy-fuel oil.
Another plant is expected in two months in Mutundwe and will generate 50MW of thermal power.
Uganda requires 380MW but only 255MW are generated, creating a shortage of about 125MW.