Business
Uganda looking to double power output in the next 4 years – ahead of crude oil production
East Africa’s third largest economy, Uganda plans to double the length of its power grid in four years at a cost of US$500 million as it seeks to boost electricity production and reduce transmission losses.
Uganda is looking to rapidly expand its power generation infrastructure ahead of its planned start of crude oil production in 2017.
According to Simon D’Ujanga, the country’s state minister for energy, Uganda intends to expand its power lines from by an extra 1700 kilometers.
“The transmission network will be doubled within the next 4 years. We have 6 transmission line projects totaling US$500 million, these being implemented concurrently.”
Projects included lines serving domestic markets in Uganda, a separate line connecting it to Kenya and another to Rwanda.
In June, Uganda signed a contract granting the Sinohydro Group of China in partnership with local contractors to build a 600 MW Karuma dam on the Nile River at a cost of US$1.65 billion.
Uganda is depending on the Karuma dam project to generate sufficient cheap power to meet fast-growing energy needs and support an economy eyeing double-digit growth rates once crude oil production starts.
Economic growth in Uganda is projected at about 6 percent this financial year – with minimal foreign aid.
Work on the Karuma dam project commenced in August and is expected to be complete in 60 months.
As the country grows, its demands for energy grow proportionally, thus in addition to the Karuma project, plans are already at an advanced stage towards to construction on a smaller hydro plant – also on the Nile river.
Most of Uganda’s power output comes from hydro power generation. The country is in the process of diversifying the power sources and will embark on generating electricity from bagasse – sugarcane waste in the next 4 years.
Source: Newswires