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Uganda to Procure Thermal Power Plants to Address Power Crisis

Posted on: Wednesday, 8 February 2006, 09:01 CST

Uganda to procure thermal power plants to address power crisis

KAMPALA, Feb. 7 (Xinhua) -- The Ugandan government is in the process of procuring thermal plants to generate 150 megawatts (MW), as an emergency measure to address the current power shortage the country is facing, a senior government official has said.

The permanent secretary from the Ministry of Energy and Mineral Development, Fred Kabagambe, was quoted by local press as saying on Tuesday that the installation of the first thermal generators that will generate 50 MW will be accomplished by June this year.

He said of the 150 MW, 50 MW will be supplied by an independent power producer and will be installed in four months.

Uganda needs about 340 MW, but the country's two major dams, Kiira and Nalubaale, are generating 180 MW, supplemented by Aggreko's 50 MW of thermal electricity.

Kabagambe attributed the cause of the shortfall to reduced water levels at the two dams due to prolonged drought, delays in setting up of the 250 MW Bujagali power project that was to start in 2004 and increased demand.

He however noted that the new measures would reduce the power deficit prior to the commissioning of the Bujagali power project that would be ready by 2010.

Experts have warned that power consumers should brace for higher electricity tariffs as the government is compelled to go for the more expensive thermal power to bridge the shortfall in generation.

Frank Ssebowa, the executive director of Electricity Regulatory Authority, said it would take "divine intervention" to see power costs coming down.

When Aggreko was commissioned, the cost of oil was 45 U.S. dollars a barrel. Today it is close to 65 dollars and "this hasn't been passed on to the consumer because the government is subsidizing. But for how long shall we subsidize?" Ssebowa queried.

Because of the power crisis, the country is currently facing a 12- hour electricity load-shedding.

Ugandan manufacturers have however protested this move, saying it is going to kill their industry.

Manufacturers said even before the introduction of the intense power rationing, the situation was bad and the new schedule threatens the very existence of the industry.

Abid Alam, the chairman of Uganda Manufacturers Association ( UMA), was quoted as saying that UMA wants the government to subsidize the cost of fuel so that industries can power their own generators.

He said the subsidized fuel costs would cushion manufactures from high overheads due to lengthy power rationing.

Source: Xinhua News Agency - CEIS

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