Energy in Uganda

Burning of renewable resources provides approximately 90 percent of the energy in Uganda,[1] though the government is attempting to become energy self-sufficient.[2] While much of the hydroelectric potential of the country is untapped, the government decision to expedite the creation of domestic petroleum capacity coupled with the discovery of large petroleum reserves holds the promise of a significant change in Uganda's status as an energy-importing country.[3]

Background

In the 1980s, charcoal and fuel wood met more than 95 percent of Uganda's energy needs.[4] In 2005 and 2006, low water levels of Lake Victoria, the main source of the country's electricity generation potential, led to a generation shortage and an energy crisis.[5][6] As a result, the country experienced frequent and prolonged blackouts.[4][5][7] As of June 2016, according to the Uganda Bureau of Statistics, about twenty percent of Ugandans had access to electricity.[8] As of February 2015 and according to the Uganda Electricity Regulatory Authority, Uganda's installed electricity capacity was 810 megawatts, with peak demand of 509.4 megawatts so that "the incidence of load shedding due to shortage in supply is now close to zero."[9] As of September 2017, according to Irene Muloni, the Uganda Minister of Energy, the country's generation capacity had increased to 950 megawatts.[10] Uganda expects to have a generating capacity of at least 1,900 megawatts by the end of 2019, as forecast by the Uganda Ministry of Energy and Mineral Development.[10] In March 2018, the World Bank Group estimated that about 26 percent of Uganda's population (8 percent in rural areas) had access to grid-electricity at that time.[11]

Hydroelectricity

Nalubaale Power Station, 2007.

Poor maintenance during the politically unstable 1980s resulted in a drop in production at the Owen Falls Dam (now Nalubaale Power Station), at the mouth of the White Nile, from 635.5 million kilowatt-hours in 1986 to 609.9 million kilowatt-hours in 1987, with six of ten generators broken by the end of 1988.[12] The 200 megawatt Kiira Hydroelectric Power Station, built adjacent to the Nalubaale Power Station, raised total production capacity to 380 megawatts.[13]

Between 2007 and 2012, the 250 megawatt Bujagali Hydroelectric Power Station was constructed as a public-private project, at a cost of approximately US$862 million. The consortium that owns the station includes the Aga Khan Fund for Economic Development, Sithe Global Power LLC (a subsidiary of the Blackstone Group), and the government of Uganda. Bujagali Energy Limited is a special-vehicle company created to run the power station on behalf of the shareholders.[14]

In October 2013, construction of the 183 megawatt Isimba Power Station began, approximately 40 kilometres (25 mi) downstream of Bujagali, at a budgeted cost of approximately US$590 million, as a public enterprise with funding from the Export-Import Bank of China. Commissioning is planned during the second half of 2018,[15][16] although power generation may begin as early as 2016.[17]

Also in 2013, work on the 600 megawatt Karuma Power Station commenced at a budgeted cost of about US$2 billion, including US$250 million to build the high-voltage transmission lines to evacuate the generated power. Completion is planned for late 2018.[18]

As of May 2015, about six operational mini-hydropower plants are connected to the national electricity grid, supplying about 65 megawatts. These include Nyagak I (3.5 megawatts), Kabalega (9 megawatts), Kanungu (6.6 megawatts), Bugoye (13 megawatts), Mubuku I (5 megawatts), Mubuku III (10 megawatts), and Mpanga (18 megawatts).[19]

Thermal power

Two heavy fuel oil thermal power stations exist in the country.

Namanve Power Station is a 50 megawatt plant owned by Jacobsen Electricity Company (Uganda) Limited, a wholly owned subsidiary of Jacobsen Elektro, an independent Norwegian power production company. The plant cost US$92 million (€66 million) to build in 2008.[20]

Tororo Power Station is an 89 megawatt heavy fuel-oil powered plant owned by Electro-Maxx Limited, a Ugandan company and a subsidiary of the Simba Group of Companies, owned by Ugandan industrialist Patrick Bitature. This plant is licensed to sell up to 50 megawatts to the national electricity grid.[21]

Namanve and Tororo are used as stand-by power sources to avoid load-shedding when hydropower generation fails to meet demand.[22]

Five sugar manufacturers in Uganda have total cogeneration capacity of about 110 megawatts, of which about 50 percent is available for sale to the national grid. The cogeneration power plants and their generation capacities include Kakira Power Station (52 megawatts), Kinyara Power Station (40 megawatts), Lugazi Power Station (14 megawatts), Kaliro Power Station (12 megawatts) and Mayuge Thermal Power Station (1.6 megawatts).[23][24]

Oil and natural gas

Uganda is highly vulnerable to oil price shocks as it imports almost all of its 18,180 barrels per day (2,890 m3/d) of oil (2013 figure). The oil comes through the Kenyan port of Mombasa.[25]

The governments of Kenya, Uganda, and Rwanda are jointly developing the Kenya–Uganda–Rwanda Petroleum Products Pipeline to carry refined petroleum products from Mombasa through Nairobi to Eldoret, all in Kenya. From Eldoret, the pipeline will continue through Malaba to Kampala in Uganda, continuing on to Kigali in Rwanda. The feasibility study for the Eldoret to Kampala pipeline extension was awarded to an international firm in 1997. The study was completed in 1998 and the report submitted the following year. The separate feasibility study for the Kampala to Kigali extension was awarded to the East African Community in September 2011. The governments of Kenya, Uganda, and Rwanda accepted the findings of the studies. The construction contract was initially awarded, in 2007, to Tamoil, a company owned by the Government of Libya. That contract was voided in 2012 after the company failed to implement the project. As of April 2014, fourteen companies had submitted bids to construct the pipeline extension from Kenya to Rwanda. Construction is expected to begin in 2014, with a 32-month construction timeframe. Commissioning is expected in 2016.[26]

Hoima District (in red), located along Lake Albert, has been the site of the petroleum finds.

In 2006, Uganda confirmed the existence of commercially viable petroleum reserves in the Western Rift Valley around Lake Albert. In June 2006, Hardman Resources of Australia discovered oil sands at Waranga 1, Waranga 2, and Mputa. President Yoweri Museveni announced that he expected production of 6,000 bbl/d (950 m3/d) to 10,000 bbl/d (1,600 m3/d) by 2009.[27]

In July 2007, Heritage Oil, one of several companies prospecting around Lake Albert, raised its estimate for the Kingfisher well (block 3A) in Hoima District, Bunyoro sub-region, stating that they thought it was bigger than 600 million barrels (95,000,000 m3) of crude. Heritage's partner, London-based Tullow Oil, which had bought Hardman Resources, was more guarded, but stated their confidence that the Albertine Basin as a whole contained over one billion barrels. The Kingfisher-1 well flowed 13,893 barrels per day (2,208.8 m3/d) of 30-32 API oil.[28]

This news came on the heels of Tullow's 11 July 2007 report that the Nzizi 2 appraisal well confirmed the presence of 14 million cubic feet (400,000 m3) per day of natural gas. Heritage in a report to its partners talked of Ugandan reserves of 2.4 billion barrels (380,000,000 m3) worth $7 billion as the "most exciting new play in sub-Saharan Africa in the past decade."[28] However, development will require a 750 miles (1,210 km) pipeline to the coast, which will need $80 oil to justify.[29] Relations between Uganda and the neighboring Democratic Republic of the Congo (DRC) have been tense since the discovery of oil, as both countries seek to clarify the border delineation on the lake in their favor, in particular the ownership of small Rukwanzi Island. Ugandan foreign minister Sam Kutesa made an emergency visit to Kinshasa in an attempt to smooth tensions.[30]

The Economist magazine, noting that the DRC has assigned exploration blocks on its side of the border, proposed that the situation should sort itself amicably: Uganda needs a stable and secure border in order to attract foreign investment developing the oil reserves, while the cost of transporting the oil to the DRC's sole port at Matadi is so prohibitive that the Congolese government is nearly obliged to seek pipeline access through Uganda.[30]

After an initial period of disagreement between the Government of Uganda and the petroleum exploration companies, the two sides agreed in April 2013 to simultaneously build a crude oil pipeline to the Kenyan coast (Uganda–Kenya Crude Oil Pipeline) and an oil refinery in Uganda (Uganda Oil Refinery).[31]

In February 2015, the Ugandan government selected the consortium led by Russia's RT Global Resources as the winning bidder, to construct the refinery. The government was expected to begin in-depth negotiations with the winning bidder for a binding agreement to construct the refinery. The negotiations were expected to last about 60 days. If the parties failed to agree on terms, the government planned to negotiate with the losing bidder, the consortium led by SK Energy of South Korea, to construct the refinery.[32] When those talks broke down in July 2016,[33] Uganda began talks with the reserve bidder, the consortium led by SK Engineering & Construction of South Korea.[34]

In August 2017, negotiations with the consortium led by SK Engineering & Construction also broke down.[35] Negotiations were then started with a new consortium led by Guangzhou Dongsong Energy Group, a Chinese company. Those talks collapsed in June 2017 when CPECC, the main contractor in the consortium, pulled out of the talks.[36]

In August 2017, Albertine Graben Refinery Consortium, a new consortium led by General Electric (GE) of the United States and J&K Minerals Africa agreed to build the US$4 billion refinery. GE is to own 50 percent and J&K Minerals Africa to own 10 percent, while the government of Uganda and other investors take up the remaining 40 percent. Total SA, has pledged to take up a 10 percent stake in the refinery.[35]

In December 2017, Irene Muloni, Uganda's Energy Minister announced that the country planned to join the Organization of the Petroleum Exporting Countries (OPEC), by 2020, when first oil is expected.[37]

Solar energy

To diversify the national energy pool, the Electricity Regulatory Authority in December 2014 licensed two solar power stations, each with capacity to generate 10 megawatts. The stations, Tororo Solar Power Station and Soroti Solar Power Station, were expected to come online no later than December 2015.[1][38] In December 2016, Soroti Solar Power Station was completed and connected to the national grid.[39] Tororo Solar Power Station was also brought online in October 2017.[40]

See also

References

  1. 1 2 Alfred Wandera, and Samuel Sanya (31 March 2015). "20MW of solar energy to be added to national grid". New Vision. Kampala. Retrieved 25 November 2015.
  2. ↑ Muloni, Irene (2012). "Uganda's Renewable Energy Investment Guide 2012" (PDF). Embassy of The Netherlands In Uganda. Retrieved 14 May 2015.
  3. ↑ Julie Magnihild Grøtnæs, Trond Kvarsvik, Ingvild Bergskaug, and Svein Erik Heglund (2 July 2014). "The Oil for Development Programme In Uganda". Norwegian Agency for Development Cooperation. Retrieved 31 May 2015.
  4. 1 2 Saundry, Peter (15 July 2009). "Energy Profile of Uganda". Eoearth.org. Archived from the original on 9 June 2015. Retrieved 31 May 2015.
  5. 1 2 Kasita (9 October 2012). "Strategic plan to increase power supply pays dividends". New Vision. Kampala. Retrieved 1 June 2015.
  6. ↑ RWI (26 September 2005). "USDA: Low water levels observed on Lake Victoria". Reliefweb.int (RWI). Retrieved 1 June 2015.
  7. ↑ Gatsiounis, Ioannis (14 October 2011). "Uganda's power outages spark scrutiny, criticism". The Washington Times. Retrieved 1 June 2015.
  8. ↑ Wesonga, Nelson (16 June 2016). "German firm avails Shs80b for new power connections". Daily Monitor. Kampala. Retrieved 16 June 2016.
  9. ↑ NRFC (February 2015). "Investing in the electricity sector in Uganda". Norton Rose Fulbright (NRFC). Retrieved 12 August 2015.
  10. 1 2 Okoth, Cecilia (13 September 2017). "Home National Uganda to double electricity capacity by 2019". New Vision. Kampala. Retrieved 13 March 2018.
  11. ↑ Press Release (8 March 2018). "IFC and MIGA Boards Support Bujagali Refinancing Package to Reduce Ugandan Electricity Costs". Washington, DC: International Finance Corporation. Retrieved 2 June 2018.
  12. ↑ U.S. Library of Congress (1989). "Uganda Energy During the 1980's". Countrystudies.us. Retrieved 14 May 2015.
  13. ↑ UEGCL. "Profile of Kiira Hydroelectric Power Station". Uganda Electricity Generation Company Limited (UEGCL). Archived from the original on 23 May 2015. Retrieved 14 May 2015.
  14. ↑ Press Release (8 October 2012). "Ugandan President Museveni And Aga Khan Inaugurate Bujagali Hydropower Plant". Blackstone.com. Retrieved 14 May 2015.
  15. ↑ Joint Report (5 October 2013). "Uganda Kicks Off Construction of Isimba Plant". The EastAfrican (Nairobi). Retrieved 14 May 2015.
  16. ↑ Nelson Wesonga, and Yasiin Mugerwa (15 March 2015). "Parliament Okays UShs1.4 Trillion Loan for Isimba Hydropower Deal". Daily Monitor (Kampala). Retrieved 14 May 2015.
  17. ↑ Masaba, Yusuf (20 February 2015). "Isimba hydro plant to start power generation in 2016". The Observer (Uganda). Kampala. Retrieved 17 January 2016.
  18. ↑ Wesonga, Nelson (25 March 2015). "Parliament Okays US$1.435 Billion Loan for Karuma". Daily Monitor (Kampala). Retrieved 14 May 2015.
  19. ↑ Kalyango, Ronald (14 February 2011). "Kamwenge Gets USh60 Billion Power Project". New Vision (Kampala). Archived from the original on 22 May 2015. Retrieved 15 May 2015.
  20. ↑ Juuko, Sylvia (6 November 2008). "Namanve Plant Reduces Load-Shedding". New Vision (Kampala). Archived from the original on 14 September 2012. Retrieved 15 May 2015.
  21. ↑ Minenamd (12 May 2017). "Ministry of Energy and Mineral Development Celebrating the Annual Manifest Week, From 12th to 19th May 2017". Kampala: Uganda Media Centre. Retrieved 5 September 2017.
  22. ↑ Muhumuza, Mark Keith (22 January 2014). "Heavy Fuel Electricity Could Return In 2014 As Demand Hits 12 Percent". Uganda Radio Network. Retrieved 15 May 2015.
  23. ↑ Special Correspondent (24 July 2015). "Kenya Joins Big Investors In Renewable Energy As East Africa Plays Catch-Up". The EastAfrican. Nairobi. Retrieved 24 July 2015.
  24. ↑ ERA (30 May 2014). "Application for A License for The Establishment of A 11.9MW Bagasse Co-Generation Power Plant In Kaliro District". Electricity Regulatory Authority (ERA). Archived from the original on 11 August 2014. Retrieved 15 May 2015.
  25. ↑ CIA (24 April 2015). "The World Factbook: Uganda - Energy: Petroleum Products". Retrieved 15 May 2015.
  26. ↑ HCTC (2012). "Kenya-Uganda Oil Pipeline, Kenya". Hydrocarbons-technology.com (HCTC). Retrieved 15 May 2015.
  27. ↑ Afrol (9 October 2006). "Uganda Becomes Oil Producer". Afrol.com. Retrieved 15 May 2015.
  28. 1 2 " More oil, gas found" by Edris Kisambira, East African Business Week, 16 July 2007
  29. ↑ Fritsch, Peter (22 October 2008). "Africa's Potential To Sate World's Oil Demand Dims". Wall Street Journal. Retrieved 15 May 2015.
  30. 1 2 From Print Edition (23 August 2007). "Congo And Uganda: Do You Want To Share Or To Fight? - The Question Posed By The Oil Find In Lake Albert". The Economist. Retrieved 15 May 2015.
  31. ↑ Bariyo, Nicholas (15 April 2013). "Uganda Reaches Deal On Refinery, Pipeline". Wall Street Journal. Retrieved 15 May 2015.
  32. ↑ Biryabarema, Elias (17 February 2015). "Uganda Picks Russia's RT Global Resources To Build Refinery". London: Reuters. Retrieved 15 May 2015.
  33. ↑ Musisi, Frederic (1 July 2016). "Russian firm pulls out of Uganda's $4 billion oil refinery". The EastAfrican. Nairobi. Retrieved 1 December 2017.
  34. ↑ Biryabarema, Elias (1 July 2016). "Uganda switches bidder in talks over long-delayed $2.5 billion refinery". Reuters.com. Retrieved 1 December 2017.
  35. 1 2 Biryabarema, Elias (7 August 2017). "Uganda says agrees terms with consortium to build oil refinery". Reuters.com. Retrieved 1 December 2017.
  36. ↑ Matsiko, Haggai (31 July 2017). "Uganda: Chinese Quit Museveni's Refinery Deal". The Independent (Uganda) via AllAfrica.com. Kampala. Retrieved 7 August 2017.
  37. ↑ Musisi, Frederic (4 December 2017). "Uganda requests to join OPEC". Daily Monitor. Kampala. Retrieved 4 December 2017.
  38. ↑ Biryabarema, Elias (10 December 2014). "Four Firms To Build 20 MW Solar Power Plants In Uganda". Reuters.com. Retrieved 15 May 2015.
  39. ↑ Asiimwe, Dicta (13 December 2016). "Uganda's first 10MW solar plant comes online". The EastAfrican. Nairobi. Retrieved 1 May 2017.
  40. ↑ EEEU (16 October 2017). "10 MW EU funded Tororo Solar Power Plant opens". Eeas.Eupora.eu (EEEU). Retrieved 1 December 2017.
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