Uganda Seeks Funds for Massive Hydropower Projects

Uganda is aiming to boost its energy capacity by over 1,600 MW with the construction of three hydropower plants. The largest project is the 840 MW Ayago plant. This initiative is part of Uganda's strategy to meet the rising power demand and promote diversified energy sources, including nuclear power.

Uganda is on a mission to significantly increase its energy production by seeking funds to develop three new hydropower plants. These plants are expected to add over 1,600 megawatts (MW) to the nation's power grid, according to a statement made by an energy official on Wednesday.

The East African nation has pinpointed three potential sites along the Nile river, with the 840 MW Ayago plant being the most substantial, as disclosed by Wamala Julius Namusanga, a junior official at the ministry of energy and mineral development. The other projects, the 400 MW Kiba and 392 MW Oriang plants, would elevate Uganda's total power capacity to around 3,678 MW, representing an 80% increase from current levels.

"The country needs energy for development," Namusanga shared with Reuters during an industry event in New Delhi, citing a 10% annual growth in power demand. He stressed the urgency of obtaining funding to commence these projects. Emphasis is currently on the Kiba project, with the ministry actively seeking consultants and engaging in discussions with potential investors and companies.

Currently, hydropower contributes nearly 85% of Uganda's energy, complemented by thermal and solar sources. Recently, Uganda commissioned its largest power generation facility, a 600 MW hydropower station financed with $1.7 billion from a Chinese loan.

In a bid to diversify its energy portfolio, Uganda also plans to build nuclear power plants with assistance from the China National Nuclear Corporation, as part of a peaceful atomic energy collaboration.

(With inputs from agencies.)