KAMPALA:- Power distributor, UMEME Ltd, has claimed it has invested $739m, equivalent to Shs. 3 Trillion in Uganda’s power grid in 15 years.
The distributor is collaborating with Uganda Electricity Transmission Company Limited (UETCL) and Uganda Electricity Distribution Company Limited (UEDCL) with several other partners to execute several projects outside of Uganda’s capital, Kampala. The partnerships in the regions of Uganda are aimed at boosting quality and reliability of supply.
Exactly a year ago, Umeme Head of Communications, Peter Kaujju, while inspecting projects in Northern Uganda said: “Umeme and partners have stepped up investments to boost the quality and reliability of power in Northern Region which includes Lira, Gulu, Kitgum, Masindi and Hoima with a combined total of over 28,000 customers.”
He said some of the investments range from doubling the Lira substation capacity from 20-40 MVA as part of the interventions to meet the annual 20% growth in demand, increasing the carrying capacity of the power line to serve more clients and automation to enhance safety and reliability.
“Umeme remains committed to supplying quality and reliable electricity to all its customers across the country,” Kaujju told busiweek.
Stable, reliable and affordable power is important for competitive production. This is why since 2005, power distributor Umeme has invested over USD 739m in the distribution network to drive distribution efficiencies as well as increasing electricity access.
For instance, the distributor has upgraded capacity at Gulu Substation from 5MVA to 10MVA and works are in progress with completion timeline by December 2020 to cater for suppressed demands and new upcoming investors.
There has also been refurbishment works on Gulu 33kV and Kitgum 33kV from Lira Main substation being implemented by UEDCL commenced and was expected to be completed by end of 2020.
UETCL upgraded Tororo – Opuyo -Lira 132kV power line with steel structures and currently Opuyo-Lira 132kV transmission line has been transferred to steel structures pending some sections between Tororo- Opuyo due to wayleave challenges.
To ensure energy security, Uganda today has moved from reliance on a few hydro dams to a diversified generation mix consisting of 4: Hydro (1,023.59 MW), Thermal (100 MW), Cogeneration (63.9 MW) and grid-connected solar (60.8 MW)
Since 2000, the Government through Electricity Regulation Authority (ERA) has issued 67 licenses for electricity Generation, Transmission & Distribution while Generation capacity grew from 404.4MW in 2000 and by the end of 2021, will reach 1868.9 MW.
ERA
Meanwhile, the Electricity Regulatory Authority (ERA) will in the next five years seek to increase access to electricity from 22 per cent to 60 per cent.
ERA is mandated to regulate the electricity sub-sector, and under its five-year strategic plan, seeks to grow per capita electricity consumption from 100 kilowatts per hour to 578 kilowatts per hour.
This will be premised on growth of transmission from the current capacity of 2,354 kilometres to 4,354 kilometres of high voltage transmission lines and grid reliability to 90 per cent.
Electricity access is still largely low with supply only concentrated in urban and semi-urban areas in central and western Uganda.
Northern Uganda continues to suffer under low access and unstable supply with power outages taking days before they are rectified.
During the period, ERA notes, a number of investments will be worked on with at least an average of Shs3b in capital expenditure invested annually.
Recently, Uganda Bureau of Statistics, while releasing the National Household Survey 2020, indicated that despite the country producing more electricity than demanded, the number of people connected to the grid had dropped from 22 per cent to 19 per cent.
The report also noted that more Ugandans were now using solar than grid electricity.
In the next five year, according to the strategic plan, ERA will seek to increase revenue earned from generation levy from the current 21.6 per cent to 32.9 per cent.
ERA will also reduce license fees from 74.7 per cent to 63.7 per cent by the end of the 2024/25 financial year.
The five year strategic plan, which will run under the “Reliable and affordable electricity supply for socioeconomic transformation” theme, will also seek to achieve affordable tariffs, reliability and quality of service, among others.
It will also seek to increase reliability and quality of service and supply as well as accelerating access and growing demand.
Ziria Tibalwa Waako, the ERA chief executive officer, says that for ERA to achieve its targets, stakeholder management will be needed to build and maintain mutually beneficial relationships as well as put in place strong governance, risk, and compliance management policies for prudent leadership.
“There will be people, processes, tools, and institutional sustainability – to attain value-for-money and growth for a competitive electricity regulatory system,” she says.