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

11. UETCL’S POWER SUPPLIERS INSTALLED CAPACITY (MW)
Current Generation
UETCL’S POWER SUPPLIERS
CATEGORY/SUPPLIER
INSTALLED CAPACITY (MW)
DISPATCH AS AT DEC 2012
LARGE HYDROS
ESKOM UGANDA LIMITED
380MW
215MW
BUJAGALI/BEL
250MW
MINI HYDROS
MPANGA/EMS
18MW
11MW
BUGOYE/TRONDER
13MW
7MW
KILEMBE MINES
5MW
2MW
KASESE COBALT
9.5MW
0MW
ISHASHA
6.5MW
3MW
KABALEGA
9MW
CO-GENERATION
KAKIRA SUGAR WORKS
12MW
KINYARA SUGAR WORKS
1.5MW
THERMAL
JACOBSEN UGANDA LIMITED (NAMANVE HFO)
50MW
ELECTROMAXX (TORORO HFO)

12. PROPOSED CAPACITY (MW)
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

13. PROPOSED CAPACITY (MW)
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