The aerial view of the Bujagali Hydropower Dam. PHOTO/COURTESY/AKDN
TotalEnergies has announced that it had agreed to buy a 28.3 percent stake in the 250-megawatt Bujagali Hydropower Dam on the River Nile.
The French energy giant did not indicate the price it paid Scatec ASA, a Norwegian renewable energy company, to wholly acquire its subsidiary SN Power which holds a stake in the power plant.
“This acquisition of renewable hydroelectric assets and projects in Africa reflects our desire to contribute to the continent’s energy transition by bringing electricity to the people of African countries,” TotalEnergies said in a statement yesterday.
The transaction, which TotalEnergies said is subject to unnamed certain previous conditions, cements the company’s position in Uganda’s energy sector.
“In particular, we are delighted to be able to become a player in hydropower in Uganda, a country where we are also developing a major oil project,” the statement read in part.
TotalEnergies is the lead developer of the nascent crude oil project in western Uganda, and the majority shareholder of the East African Crude Oil Pipeline, which is a key component. China National Oil Company, CNOOC, and the Uganda National Oil Company (UNOC), are partners in the oil and gas projects.
The acquisition of a stake in Bujagali, a renewable energy project, is expected to strengthen TotalEnergies’ green energy credentials against criticism of the crude oil project and pipeline from environmental civil society groups.
Bujagali became the largest hydropower generation facility in Uganda when it was commissioned in 2012. It nearly doubled the country’s peak electricity supply and drastically reduced daily load-shedding.
The 600MW Karuma hydropower dam downstream on the River Nile will become the biggest hydropower dam in the country when it is finally commissioned.
Energy and Mineral Development Minister Ruth Nankabirwa Ssentamu welcomed the announcement.
“This is good news because TotalEnergies is involved in fossil fuel activities and this acquisition of stakes in Bujagali hydropower plant will go a long way in balancing or making up,” she said, adding: “You may want to know that they have applied for a licence to generate solar power. They are also involved in tree planting – all these are good developments and something that I think I would support myself. And remember this is a business, but importantly, for as long as power tariffs don’t go up, this is a good development that we will be looking to support.”
Additionally, TotalEnergies will also acquire minority stakes in two projects under development in Rwanda (260 MW) and Malawi (360 MW), the company said.
Other shareholders in Bujagali are the Government of Uganda and Bujagali Holdings Power Company Ltd, an affiliate of Aga Khan Fund for Economic Development.
