Transcript OIL, GAS AND THE POWER SECTOR IN UGANDA: OPPORTUNITIES AND

SYMPOSIUM:
UGANDA AFTER IDI AMIN AND
MILTON OBOTE
Hamburg, Germany
29th September 2008
INVESTMENT OPPORTUNITIES IN POWER
GENERATION IN UGANDA
PRESENTED BY
HON. DAUDI MIGEREKO
MINISTER OF ENERGY AND MINERAL DEVELOPMENT, UGANDA
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Outline of the Presentation
• Introduction
• Issues in the Power Sector before 1986
• Reforms in the Power Sector
• Plan for Increasing Power Supply.
• Opportunities for Investment in the Power
Sector.
• Conclusions.
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INTRODUCTION
•
Uganda is well endowed with a variety of
energy resources which include:
– large hydro resources along the Nile,
– fossil fuels,
– Renewable energy such as small hydros,
biomass, solar, wind and geothermal sources.
•
The development of these resources provides
investment opportunities in a number of areas
in power generation to meet the power
demand in the Region.
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ISSUES IN THE POWER SECTOR
BEFORE 1986
• One Power station in the country - the Owen
Falls Power station commissioned in 1954.
• Total installed capacity - 150 MW.
• Inadequate investment in the sector.
• Slow growth in the economy.
• Low power demand and very poor supply
reliability.
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REFORMS IN THE POWER SECTOR
To address the issues above, the NRM Government
introduced reforms in the sector with a view to:
• improving the efficiency of the then utility company,
Uganda Electricity Board;
• introducing a power sector regulatory framework in
order to protect both the interests of power
consumers and the investors;
• liberalizing the sector and commercializing and
privatizing generation and distribution businesses;
• enabling the private sector to enter the power
sector.
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Impact of the Reforms
• A number of players from the private
sector have been attracted into the
energy sector which has increased
power generation.
• Private players have acquired
concessions for existing generation
plants and in the distribution network.
• A number of private firms are investing
in new ventures.
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Installed Capacity Available for
Power Generation
The installed capacity for power generation is as
follows:
•
Kiira & Nalubaale Power stations at Jinja 380 MW
•
Thermal Power Stations by Aggreko 100 MW
•
Thermal Power station by Jacobsen
50 MW
•
Cogeneration by Sugar Plants
25 MW
•
Mini Hydros
17 MW
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PLAN FOR INCREASED POWER
SUPPLY
Government has put in place a short, medium and
long term plan to ensure supply meets demand
at any time in the future from 2010 onwards. The
plan involves:
• increasing generation capacity using fossil fuels,
• construction of two large hydropower plants
within the next 4 years,
• enhancement of renewable energy development,
• emplacement of energy efficiency measures, and
• development of other large hydros.
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The Energy Fund
To facilitate the smooth implementation
of the strategic plan, an Energy Fund
was established to enable
government to speed up investments
in hydro power projects and the
associated infrastructure.
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Hydropower Projects for
Development
•
•
•
•
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Bujagali (250MW) being constructed;
Karuma (200MW) is planned for 2009,
Isimba (100MW) in 2009;
Ayago North (300MW) and Ayago South
(250MW) in the medium term.
Other sites are Murchison Falls (600MW).
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Sites for Hydropower Development
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Opportunities for investment in
Hydropower
•
•
•
•
Participation in the Public Private Partnership
(PPP).
Contribution to equity.
Participation in the Engineering,
Procurement, and Construction (EPC)
Contract.
Supply of Equipment required in the project.
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Investment Opportunities in Renewable
Energy.
•
•
•
37 small hydropower sites so far identified with an
estimated power potential of 164MW. So far
54MW has been committed for development by
investors.
Co-generation capacity is being expanded of
which 12MW is now being fed into the national
Grid. Joint partnerships with the five sugar
factories can enable higher level generation
capacities.
Dissemination of Solar Photovoltaic Systems in
rural areas not connected to the main grid.
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High Voltage Transmission Projects
Planned Transmission Network: In order to
cater for plans to achieve national coverage,
plans are underway to build new transmission
lines in the next 10 years totalling 1,000km of
132KV, 500km of 220KV and 264 of 400KV.
Regional Projects under the East African Power
Master plan:
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Uganda-Kenya (220kV, 230km),
Uganda-Tanzania ((220kV, 510km); and
Uganda-Rwanda (132kV, 230km).
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Opportunities for Investment in
Transmission
• Supply of equipment such as
transformers and high voltage
cables.
• Construction of towers,
transmission lines and Substations.
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Financing of Power Projects:
• The development of these projects
requires substantial financing.
• This therefore provides
opportunities for Investment Banks
to provide financing instruments to
potential developers.
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CONCLUSION
• Investment in the energy sector is priority
number one for the Government of
Uganda.
• The Energy Sector in Uganda is
expanding very fast with a legal and
institutional framework for carrying out
business offering tremendous
opportunities.
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CONCLUSION
• The opportunities include:– Participating in the construction of Hydroelectric Power
Plants.
– Participation in the construction of small renewable energy
projects.
– Construction and development of the transmission network.
– Sponsoring and financing of energy projects at attractive
rates of return.
• The above, combined with the accountable leadership,
which we have, will ensure sound returns for investors
and benefit the entire population of Uganda.
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