Eight renewable energy projects in offing
boost electricity supply
KAMPALA: The Electricity
Regulatory Authority [ERA] yesterday announced that construction of eight
renewable energy projects with a capacity a combined of capacity of 83.7MWs
will commence later this year.
The ERA CEO, Benon Mutambi, said bidding for
the eight projects Kakira Sugar (Bagase technology), Kikagati, Nyamwamba,
Rwimi, Nengo Bridge, Waki, Siti 1and2-all hydro, under Global Energy Transfer
for Feed-IN-Tariffs, [GETFIT] have been conducted and awarding of contracts
underway.
“The existing supply from renewable energy
sources is sufficient to meet the current demand,” he said, “These should be
able to help us as an alternative to the heavy fuel based [thermal] plants
which current produce up to 100MW,” but are expensive and must be dispatched
only as last resort as demand continues to grow.
Government announced last week will spend Shs59.5
billion on thermal plants throughout the year to supplement current supply,
money forked out of the energy fund.
The GETFIT scheme is an initiative that
includes a premium in the range of 1-2 US $ cents per kilowatt hour on the
renewable energy feed-in-tariff.
“The first tranche of [such] projects with a
cumulative generation capacity of 150MW is being targeted to be brought into
production within the next three years,” Mr Mutambi explained at a press
briefing about ERA’ performance of last quarter.
Currently Uganda has close to 12 hydropower
stations which produce up to 516MW against a projected peak demand of 503MW.
Once commissioned, Mr Mutambie expressed
optimism, the renewable energy projects should be able to steer the economy to
the time when the much-anticipated 600MW Karuma and Isimba dams will be
completed.
“The second round of bidding for the remaining
capacity of 67MW was initiated late last year, and more renewable energy
projects are expected to qualify for the GETFIT premium,” he said.
Renewable energy usually comes from resources
which are cyclically refilled such as geothermal, Biomass, and wind.
ERA also announced that five permits
feasibility permits have been issued out to companies to facilitate the
undertaking of detailed studies for prospected development of a combined
capacity of 99MW of grid connected Solar [photovoltaic] power in various parts
of the country.
Five additional permits have been issued for prospected
development of 33.7MW of small hydropower plants.
Two contractors, LTL Holdings and Sesam
Energetics Ltd, lost licences for 3MW small hydro power and Biomas projects,
respectively.
Side Bar
ERA also announced had reviewed the West Nile
Rural Electrification Company Ltd (WENRECO) tariff applications from Shs366.6
to Shs4404 for commercial and Shs420.2 to Shs433.6 per kilowatt hour,
respectively.