Electricity generation capacity still below requirement – Nankabirwa

The Ministry of Energy and Mineral Development has expressed concern that the electricity generation capacity in the country is still below the requirement for the country’s industrialisation and value-addition agenda which includes E-mobility; Science, Technology, and Innovation (STI) and transportation.

Speaking ahead of the Energy and Minerals Week 2024 (October 28 to November 2) at the Media Centre yesterday, the Minister of Energy and Mineral Development, Dr Ruth Nankabirwa, said Uganda has witnessed increased access and utilisation of electricity over the years but there are still deficits, which the government is pressing on to close completely by providing electricity in every district and sub-county.

“In addition to the access rate that is now at 60 percent, Uganda’s electricity generation capacity has improved. However, it is inadequate if the suppressed demand already discussed is addressed. Electricity generation installed capacity has increased to 2046.8MW following the completion and commissioning of the flagship 600MW Karuma HPP,” she said.

She added: “Nonetheless, this electricity generation capacity is still below the requirement for the country’s industrialisation and value-addition agenda including E-mobility, STI, and transportation.”

Dr Nankabirwa said Uganda has made efforts to diversify the generation mix by feeding solar, thermal, and bioenergy into the grid. Other resources being studied for development are geothermal, wind, peat and nuclear energy, however, these are yet to take off.

“The government is expanding the power transmission infrastructure by constructing several high-voltage transmission lines and associated substations. Currently, the transmission network stands at 4,962km while the distribution network is close to 72,922km,” she said.

The minister explained that mini-grids continue to demonstrate their potential to play a significant role in rapidly increasing electricity access in Uganda to unserved, underserved, and hard-to-reach areas, as evidenced by successful projects like the Promotion of Mini-Grids for Rural Electrification Project, the Kalangala Infrastructure Services Project, and initiatives by the West Nile Rural Electrification Company.

The ministry’s figures indicate that these projects have connected tens of thousands of customers, improved livelihoods, and stimulated economic growth.

Dr Nankabirwa said the target of five US cents per unit of electricity for manufacturers has already been achieved during off-peak hours for extra-large consumers. In addition, the time-of-use tariffs are very important in encouraging efficient utilisation of energy, as they allow industries to consume energy during off-peak hours.

“Additionally, I wish to remind you that inefficient utilisation attracts a penalty and that is why the ministry encourages industries to improve their power factor from time to time,” she said.

“With regard to industrial electricity consumers, the rebate system provides for reimbursement of the cost of design, finance and construction of the electricity distribution infrastructure to their facilities in terms of energy consumed to cover the cost incurred. This is beneficial if Grain Pulse has plans to expand in the future,” she added.

The minister further stated that as part of the Energy Transition Plan, electricity will play a central role in shaping and defining our energy mix, stressing that the plan will provide a path for achieving Uganda’s energy-related goals while aiming for a transition to a low-carbon and climate-resilient economy in line with the Paris Agreement and Uganda’s Nationally Determined Contribution.

She added that the government has continued to support industrialists to improve the efficient utilisation of energy through the conducting of energy audits in a bid to phase out obsolete technologies. The technical potential for energy efficiency gains in electricity consumption across all sectors is estimated to be over 2,200GWh (just more than 340 MW of expected peak demand) from projected power consumption in 2030.

She said promoting productive uses of electricity is crucial for stimulating demand and ensuring the sustainability of electrification projects. This involves identifying and supporting income-generating activities that can thrive with access to reliable electricity, such as agro-processing, small-scale manufacturing, water pumping for irrigation, and refrigeration for storage of perishable goods.

Dr Nankabirwa said inefficient use of energy cost the country significant energy and financial resources in FY2022/2023 due to inappropriate user behaviour, unregulated use of energy-consuming technologies, poor workmanship, and low adoption of energy-efficient systems.

However, she pointed out that the government has continued to support energy consumers of all categories to improve efficiency in the utilisation of the various energy resources.

“My ministry has embarked on the development of a strategy and masterplan for developing electric vehicle charging infrastructure; The technical potential for energy efficiency gains in electricity consumption across all sectors is estimated to be more than 2,200GWh (just more than 340 MW of expected peak demand) from projected power consumption in 2030,” Dr Nankabirwa said.