Business

Government Turns to Industrial Parks To Increase Power Consumption

Uganda’s Installed Generation Capacity currently stands at 1,252 MW. An additional 600MW are expected to be added when Karuma HPP is finally launched.

However, currently Uganda’s domestic electricity peak demand is only 564 MW (639 MW inclusive of exports to Kenya and Tanzania) indicating a mismatch between production and demand.

According to the Chief Executive Officer of the Electricity Regulatory Authority (ERA), Eng. Ziria Tibalwa Waako, government is now focusing on establishment of the required Transmission infrastructure to effectively evacuate the Energy generated, grow demand, accelerate Electricity access from the current 50% to 100% by 2040 and boost the Quality and Reliability of Supply.

Among the measures being implemented to achieve the above goals is opening up of the Transmission segment to Private investment. Typically, investment in Transmission infrastructure is the preserve of the Government of Uganda. However, a new system has been established that opens doors to private investment to a tune of US$ 3.5 Billion. This will complement the Government’s effort and speed up establishment of the infrastructure to evacuate the power generated,” she stated.

Through this Public Private Partnership, ERA envisions simultaneous growth of the Generation and Transmission segments especially in the business parks.

According to Eng. Waako, ERA is working with the Uganda Investment Authority to fast-track establishment of Industrial Parks in different parts of the Country purposely to reach out to the manufacturing subsector which she says has capacity to absorb large amounts of the generated power.

Further still, ERA has established an Energy Rebate Framework. The framework allows Electricity consumers to receive compensation for approved investments in Industrial Power Line extensions undertaken as part of customer connection installations. The framework is expected to encourage consumer-funded line extensions and minimize delays that usually result from utility scheduling (and budgets) in response to customer requests,” she added.

The Government of Uganda has deliberately made heavy investment in Industrial Parks where industries are expected to consume a substantial amount of Energy. Out of the 25 planned Industrial Parks, Two Electricity substations in Mukono and Iganga are completed and operational while works on the Namanve and Luzira Substations are at advanced stages. The 25 Industrial Parks are projected to consume up to 1000 MW in Seven years’ time (by 2027).

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