Cost of electricity to go down

By John Odyek

The cost of electricity generated in Uganda will be expected to reduce over the next three years as some hydro power projects get completed.

 Dr Stephen Robert Isabalija, Chairman Uganda Electricity Generation Company Ltd (UEGCL) explained that the cost of power produced by independent power producers today stands at more than US $ 11cents whereas power generated by UEGCL is sold at US $ 1.2 cents.

Independent power producers include Bujagali Energy Limited.  The government target is to sell power from generation plants at not more than US $ 5 cents. Isabalija said government has adopted a new Energy Policy Direction which gives UEGCL the mandate of implementing agency for the construction of Government flagship projects such as Karuma Hydro Power Project, Isimba and Ayago.

These include the other small hydropower plants like Nyagak III and Muzizi. Previously UEGCL was only mandated to supervise the power generation concession agreements for Nalubaale and Kiira in Jinja. He said Uganda was lagging in third position in power generation in the East Africa region with Kenya being the leader followed by Tanzania.  Uganda's power generation efficiency stands at 61%, Tanzania 65% and Kenya 78%.

State minister for finance in charge of general duties Fred Omach said the current coverage of electricity was low and there was need to ensure that those currently devoid of sustainable electricity are served.

Omach added that Uganda's Vision 2040 targets to increase electricity coverage to 80%, while the National Development Plan sets a power sector development goal of annual per capita consumption increasing from 75 Kwh/Capita (2010) to 674 Kwh/Capita (2015). This target requires additions of 3,500mw to Uganda's existing national grid.

Dr. Eng. Harrison E. Mutikanga, chief executive officer of UEGCL said UEGCL was one of the three companies born out of the Uganda Electricity Board (UEB) unbundling 14 years ago. It was given a core mandate of establishing, acquiring, maintaining and operating electricity generation facilities while running the company on sound business principles.

Mutikanga said the sector is lagging behind in meeting the electricity generation installed capacity projections of Uganda Vision 2040 and the National Development Plan (FY 2010/11-2014/15). The total current installed generation capacity in Uganda is 850MW against a target of 3,885MW by 2015 in the National Development Plan.