Uganda seeks funding for major hydropower projects

Uganda is seeking funding to construct three hydropower plants along the Nile River, adding over 1,600 megawatts (MW) of capacity to meet its growing energy demands, an energy official announced on Wednesday.

Wamala Julius Namusanga, a junior official at Uganda’s Ministry of Energy and Mineral Development, revealed that the country has identified three potential sites for development. The largest of these is the Ayago hydropower plant, which would generate 840 MW. The other planned projects are the Kiba and Oriang hydropower plants, with capacities of 400 MW and 392 MW respectively. Together, these projects would bring Uganda’s total power capacity to 3,678 MW, a significant increase of about 80 power from the current production levels.

‘The country needs energy for development,’ Namusanga said at an industry event in New Delhi. ‘Power demand in Uganda is growing at a rate of 10 percent per year.’ He added that the government hopes to begin working on these projects as soon as funding is secured, with initial efforts focusing on the Kiba project, for which consultations are already underway. Discussions with investors and potential partners are ongoing.

Uganda currently derives nearly 85 percent of its electricity from hydropower stations, with the remainder coming from thermal and solar energy. Last week, Uganda inaugurated its largest power plant to date—a 600 MW hydropower facility, built at a cost of $1.7bn, financed by a loan from China.

Namusanga also shared that Uganda is planning to diversify its energy mix by pursuing nuclear energy. The country has signed a deal with the China National Nuclear Corporation to help build atomic energy capacity for peaceful purposes.

With the planned hydropower and nuclear projects, Uganda aims to meet the increasing power needs of its population while moving towards a more diversified energy portfolio.

Credit: Africabriefing

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