Presentation is loading. Please wait.

Presentation is loading. Please wait.

Managing Director/Chief Executive Officer

Similar presentations

Presentation on theme: "Managing Director/Chief Executive Officer"— Presentation transcript:

1 Managing Director/Chief Executive Officer
UGANDA Opportunities and Demand for generation projects and tariffs in Uganda. Eriasi Kiyemba Managing Director/Chief Executive Officer UETCL

2 Contents Power sector reforms Power sector objectives Current status
Generation projects Transmission line projects Tariff Structure in Uganda

3 Power Sector Reforms In line with power sector reforms and objectives, the Government of Uganda (GOU) has initiated a number of projects on a private-public-partnership arrangement as a strategy to address power generation requirements in the short and medium term.

4 Power sector objectives
To make the power sector financially viable To increase sector’s efficiency To meet the growing demand for electricity and increase area coverage To improve the reliability and quality of electricity supply To attract private capital through private sector participation To take advantage of export opportunities

5 Power sector objectives (cont.)
The power sector has undergone reforms with the objective of ensuring adequate availability of affordable power and create a conducive environment for private sector participation in the power sector/economic development of Uganda The Government of Uganda is committed to the development and utilization of all available energy resources and technologies.

6 CURRENT STATUS Over the last 14 years GoU has implemented a comprehensive power sector reform Enacted a new Electricity Act in June 1999 Established an independent ERA in November 2000 Unbundled the UEB into successor companies in March 2001 Concessioned the generation business to ESKOM(U) Ltd in November 2002 Concessioned the distribution business to UMEME in March 2005 Collaborated with the EAC and NBI on regional power interconnection Established the REA in 2002 Formulated the Renewable Energy Policy in 2007 Launched the National Development Plan – ( ) GoU: Government of Uganda ERA: Electricity Regulatory Authority REA: Rural Electrification Agency NBI: Nile Basin Initiative

7 Uganda Power Sector Uganda Electricity Board Electricity Regulat ory
Distribution Company GENERATION SECTOR TRANSMISSION SECTOR DISTRIBUTION SECTOR Nalubaale & Kiira Stations Concessionied AES Bujagali IPP Electricity Regulat ory C U S T O M E R Uganda Electricity Generation Company Transmission Company Transmission Operator System Operator Single Buyer Private Generation IPPs Distribution & Supply Concession (UMEME) Kilembe Investments Ferdsult Engineering services Others Electricity Regulatory Authority

8 Government policies National Development Plan 2010-2015
NDP Energy Targets Increase generation capacity by an additional 3500MW by including 150MW from mini hydro plants Expand the transmission grid from the current 1300km to 2750km and increase the transmission voltage from 132kV to 220kV and 400kV Increase the consumption per capita from the current 75kWh/capita to 674kWh/capita by 2015 and 3670kWh/Capita in 2040. Increase rural electrification coverage to 20% by 2015 Reduce total system losses from 40% to 16% by 2015

9 Government policies Renewable Energy Policy 2007
To increase the use of modern renewable energy, from the current 4% to 61% of the total energy consumption by the year 2017. Sustainable Energy for all by 2030 This is a UN initiative Uganda was chosen as one of the pilot countries

10 Facts on demand vs supply
Current peak demand : 484MW Installed capacity : 814MW Current firm supply : 501.5MW Large hydro (465MW) Mini hydro (54MW) Bagasse (13.5) Currently zero thermal dispatch is implemented. Demand growth rate : 10% per annum


Planned Generation CATEGORY/SUPPLIER PROPOSED CAPACITY (MW) LARGE HYDROS Karuma 625 Ayago 600 Isimba 188 Murchison Falls --- Oriang 400 Kiba Achwa 88 MINI HYDROS Maziba 1 Nyagak 3 3.5 Kikagati 18 Waki 5 Muzizi 26/52 Kyambura 8.3

Planned Generation CATEGORY/SUPPLIER PROPOSED CAPACITY (MW) MINI HYDROS CONT’D Nyamwamba 14 Muyembe 10 Siti I&II 21.5 Lubilia 5.4 Rwimi 5.5 Nengo Bridge 7.5 Nsongezi 35 Kakaka 5 THERMAL AND SOLAR Invespro 50 Albatros 50/230 Kabaale peat 33 Sesame Taylor Geothermal 300 Namugoga Solar Mputa (Gas) ?

14 Bujagali Hydro Power Project
Project description Development, construction and maintenance of a 250MW HPS on a Build-own-operate-Transfer (BOOT) basis. Bujagali Energy Ltd. (BEL) the project company supervised the construction of 100km of 220/132kV transmission lines on behalf of UETCL.

15 Bujagali Hydro Power Project
BEL the IPP sells electricity to UETCL under a 30 year PPA UETCL’s payment obligations under the PPA is guaranteed by the GOU through a government guarantee GOU signed an IA with BEL

16 Project sponsor The project sponsor is Industrial Promotions Services (Kenya) Ltd. {IPS(K)} and SG Bujagali Holdings Ltd. IPS is the industrial development affiliate of Aga Khan Fund for Economic Development (AKFED), which promotes private sector initiatives and entrepreneurship through equity investment in Africa and Asia.

17 Project sponsor BEL is backed by IPS (Kenya) Ltd., and SG Bujagali Holdings Ltd. an affiliate of Sithe Global Power LLC. The project was implemented on a IPP (PPP) arrangement. IPS raised financing on a 20:80 equity to debt ratio from various financiers i.e. IFC, AfDB, EIB, Nederlandse Financierings-Maats-chappij Voor Ontwikkelingslanden NV

18 Thermal Power Projects
For all thermal power projects, the development, construction and maintenance of project is undertaken by the private sector. The IPPs sell electricity to UETCL the off taker under short to medium term PPAs. Payment terms are on take or pay deals. GoU signs an Implementation Agreements with the IPPs to give waivers on duty on fuel as well as import and re-export duties on the power plants and accessories

19 Thermal Power Projects
Year Plant Developer/IPP Project financing 2005 50 MW ADO Lugogo Aggreko I BOO 2006 50 MW ADO Kiira Aggreko 2008 50 MW HFO Namanve Jacobsen BOT 50 MW ADO Mutundwe

20 Thermal Power Projects
Year Plant Developer/IPP 2008 12 MW Bagasse Kakira Sugar Works BOO 2009 20 MW HFO Tororo Electromaxx 5 MW Bagasse Kinyara Sugar Works 2012 30 MW HFO Tororo Electromaxx II

21 Thermal Power Projects
Year Plant Developer/IPP 2012 20 MW Bagasse Kakira Sugar Works II BOO 2014 57 MW Gas & Crude oil Kabaale Jacobsen BOT 35 MW Bagasse Kinyara Sugar Works II 40 MW Kabale Peat Kabale Energy Ltd

22 Mini hydro power Projects
For all mini hydro power projects, the development, construction and maintenance of project is undertaken by the private sector. The IPPs sells electricity to UETCL the off taker, under long term PPAs. Payment terms are either on pay as you take or take or pay deals.

23 Mini Hydro Power Projects
Year Plant Developer/IPP Project financing 2010 13 MW Bugoye Tronder Power Ltd BOO 2011 18 MW Mpanga Africa Energy Management Systems 6.5 MW Ishasha Eco Power Ltd 2012 3.5 MW Nyagak 1 WENRECO BOOT

24 Mini Hydro Power Projects
Year Plant Developer/IPP Project financing 2012 9 MW Buseruka Hydromax BOO 2014 16 MW Kikagati Kikagati Power Co Ltd 14 MW Nyamwamba Africa Energy Management Systems

25 Hydro Power Projects Year Plant Developer/IPP Project financing 2018
600 MW Karuma PPP BOOT 2016 200 MW Isimba Private sector 2017 600 MW Ayago 2015 4.4 MW Nyagak 3 WENRECO 26 MW Muzizi BOO (GoU?)

26 Transmission Line Projects
Project financing Most of the projects have been financed by multilateral agencies i.e. AfDB, World Bank and bilateral agencies i.e. NORAD,NDF,JBIC, JICA,SIDA,DANIDA and GoU as well as through the tariff. In the recent past new financing institutions have shown interest in financing some projects i.e. KfW,China Exim Bank, India Exim Bank

27 Transmission Line Projects
Year Project Project financing 2011 Bujagali Interconnection project AfDB ,JICA & GoU 2014 220kV Bujagali Switchyard Upgrade JICA & AfDB

28 Transmission Line Projects
Year Project Project financing 2014 132kV Mbarara-Nkenda AfDB & GoU 132kV Tororo-Opuyo-Lira 220kV Bujagali-Tororo-Lessos AfDB, JICA & GoU 220kV Mbarara-Mirama-Birembo 2015 220kV Kawanda-Masaka IDA & GoU

29 Transmission Line Projects
Year Project Project financing 2014 Nkenda – Kabaale – Hoima project NORAD/AFD 2015 132kV Mutundwe-Entebbe KfW 132kV Opuyo-Moroto Islamic Development Bank & GoU

30 Transmission Line Projects
Year Project Project financing 2016 Isimba Interconnection project NORAD ? 2017 Karuma Interconnection project NORAD/AfDB & JICA ? 2020 Ayago Interconnection project JICA ? 220kV Hoima-Kinyara-Kafu NORAD ? 132kV Lira-Gulu-Nebbi-Arua IDA ? 132kV Mirama-Kabale AfDB ?

31 Transmission Line Projects
Year Project Project financing 2016 132kV Mirama-Kikagati-Nshongezi NORAD ? 220kV Nkenda-Mpondwe-Beni NORAD under NELSAP ? 220kV Masaka-Mwanza IDA ?

32 Transmission Line Projects
Year Project Project financing 2016 400kV Karuma – Nimule - Juba AfDB under IGAD & COMESA ? 2017 132kV Agago - Achwa Interconnection 132kV ? 132kV Bulambuli-Kachumbala and associated Mbale s/s

33 Tariff structure in Uganda
Transmission tariff UETCL acts as a single buyer and sole exporter and importer of power Prices between generation and transmission are bided or negotiated in form of Power Purchase Agreement UETCL sells power to distribution concessionaires at a Bulk Supply Tariff (BST) BST reflects the cost of power acquisition and transmission costs (O&M, ROI and mini investments cost provided in tariff)

34 Tariff structure in Uganda
Generation tariff The price paid by UETCL depends on whether the transmission company is paying for capacity tariff or energy tariff The revenue requirement of generation component of tariff is made up of the following cost components The investment requirement The operation and maintenance (O&M)component The concession fee or lease component Other costs such as regulatory fees and loyalties

35 Tariff structure in Uganda
Generation tariff cont’d-GETFIT For small generation projects of less than 20MW, feed-in tariffs are applied established by the Renewable Energy Policy (2007) Feed-In Tariff (REFIT Phase 1) run from but had limited uptake by project developers In 2010, Renewable Energy Feed-In Tariff (REFIT Phase 2) commenced to encourage and support greater private sector participation in power generation from renewable energy technologies

36 Tariff structure in Uganda
Generation tariff cont’d-GETFIT Electricity needs in the short and medium terms required a more aggressive program hence the special incentive scheme – GET FiT East Africa Program-Uganda pilot The main objective is to assist East African nations in pursuing a climate resilient low-carbon development path resulting in growth, poverty reduction and climate change mitigation. The premium of the Levelised Cost of Electricity will be paid as a top –up on the current REFIT levels Annual monitoring review shall be every financial year and comprehensive review every 3years

37 Revised Tariffs (Usc/kWh)
Technology Current Refit Tariff Revised LCOE Premium increase over 20 years Hydro(9><=20MW) 7.9 9.8 1.9 Hydro(1><=9MW) 9.1 11.1 2.0 Hydro(500kW><=1MW) 10.9 12.7 1.8 Bagasse 8.1 1.0 Biomass 10.3 0.6 Biogas 11.5 0.0 Landfill gas 8.9 Geothermal 7.7 7.8 0.1 Wind 12.4 13

38 Challenges Unstable hydrology which impacts on hydro power generation
Depreciation of the Uganda Shilling against foreign currencies Raising oil prices on the international market Lack of adequate spinning reserve The Bulk Supply Tariff is not yet fully cost reflective. Rampant vandalism of transmission lines Timely disbursement of GoU subsidy to UETCL Acquisition of way leaves Securing funding for new investments


40 Thank You

Download ppt "Managing Director/Chief Executive Officer"

Similar presentations

Ads by Google