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.

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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.