Demand for electricity up

By Ibrahim Kasita

Electricity demand has increased sharply a month after the multi-million dollar Bujagali Hydropower Project delivered 250 Mega Watts (MW) to national grid.

Until late July this year, power demand during peak hours (7pm – midnight), was at 443 MW yet available electricity was about 330 MW which ensured the economy continued to suffer from power blackouts.

Electricity supply has now increased to 580 MW thanks to the timely completion of the Bujagali Hydropower Project.

 “Power demand is growing at 10% per annum,” Dr Benon Mutambi, the Electricity Regulatory Authority chief said. “It means that every year we should be able to commission 50 MW project online if we are to avoid going back to the situation we were few month ago.”

The demand forecast was that the surplus energy would be consumed in the next 24 month before the undesired load-shedding returns. However, it has turned out that the excess electricity will be consumed faster than expected.

Statistics from Uganda Electricity Transmission Company (UETCL) indicate that peak demand has grown by 9% to 487 MW from previous 443 MW in just a month.

The increased demand is due to intensified investment in industries that heavily rely on electricity and heightened economic activities.

The uninterrupted power supply is expected to enhance economic activities and has reduced on the use of expensive standby diesel and petrol generators.

For instance, there have been factories that were under-producing due to unreliable power supply but now have resumed operation. For instance China’s group, Tiang Tang Steel factory, the biggest steel manufacturer in East Africa needed close to 35 MW for it to operate efficiently.

The National Water and Sewerage Corporation (NWSC) is embarking on construction of five water treatment plants, which will need about 25 MW of electricity to power all of them.

Uganda Investment Authority has indicated that there are more 62 projects especially in the manufacturing and agriculture sectors that are in the pipeline and expected to be commissioned early next year.

Already a joint venture between Uganda and South Korea has been entered to build $7.4m fruit factor in Teso region. Egyptian investors have shown intention to expand and equip the meat factory as well as build a pharmaceutical industry.

Such investment projects will need electricity to keep them operating. Likewise there is increased domestic and commercial connectivity as real estate businesses pick up. Agro processing is on the rise and they need electricity to add value to the produce.

Manufacturing and industrialization has lagged behind due to insufficient electricity supply and high energy costs.

 “I wish to point out that adequate, affordable and reliable power supply is the engine for social and economic development,”  Eng Irene Muloni the minister of energy and mineral development, said.

Given the undesired statistics, the current levels of electricity supply cannot support heavy industries like steel mills, textile mills and aluminum processing plants.

Therefore to create favourable environment for investment in such industries there is need for policy shift/reform to ensure that there is sufficient electricity generation capacity.

The National Development Plan (NDP) clearly identifies limited generation capacity and corresponding limited transmission and distribution network is among key constraints to the performance of the energy sector.

The NDP further set out increasing power generation capacity as the first objective to address this problem and construction of larger hydropower plants as the first intervention strategy.

The current situation of power demand and power supply option for Uganda therefore indicate the proposed Karuma Hydropower Project as a much needed development as it will add up to 600 MW to the national grid.

It will deliver electricity to consumers at a levelised price of sh300 per unit over a period of five decades. But Karuma project will take close to six years to commission if all things go the right way.

For now there is a need to tap in the small renewable energy projects that are cheaper and shorter to commission.

"The forms of renewable energy that we're keen to attract are those that are using mature technologies... so we're looking at solar, wind power, biomass, waste energy, geothermal," Mutambi said.

Muloni, however, explains that the immediate solution to the eminent power shortage is for consumers have to be efficient in their use of electricity to avoid wastage.

 “Consumers should contribute to the reduction of power losses by paying their bills promptly and also providing information about those who steal electricity,” she said.

 “Efforts are going to be made to ensure delivery of cheaper power supply solutions and ensuring reliable supply so that the country does not plunge into another power supply crisis.”

And hope it happens.