Uganda seeks funds to add 1,600 MW of hydro capacity, official says

Uganda is seeking funds to build three hydropower plants that would add over 1,600 megawatts (MW) of capacity to help meet rising power demand, an energy official said on Wednesday.

The East African country has identified three potential sites on the Nile river, the biggest of which is the 840 MW Ayago hydropower plant, said Wamala Julius Namusanga, a junior official at the Ministry of Energy and mineral development.

The other prospective projects are the 400 MW Kiba and 392 MW Oriang projects, he said, which would bring Uganda's total power capacity to 3,678 MW, about 80 per cent above current production.

"The country needs energy for development," Namusanga told Reuters on the sidelines of an industry event in New Delhi. "We are seeing a growth of 10 per cent in power demand every year."

"We want to start working on the projects as soon as we have the funding. We will start with the Kiba project for which the ministry has started to look for consultants," Namusanga said, adding that talks with investors and companies were ongoing.

Currently, nearly 85 per cent of Uganda's power is derived from hydropower stations, with the rest coming from thermal and solar plants.

Last week, Uganda brought online its largest electricity generation plant, a 600 MW hydropower station that cost $1.7 billion, financed with a loan from China.

Namusanga also said Uganda was planning to build nuclear power plants. "We are looking to achieve a diversified energy mix," Namusanga said.

Uganda has signed a deal with China under which the China National Nuclear Corporation would help the African country build atomic energy capacity for peaceful purposes.