EU to invest $63m in upgrading Uganda power plant

AFRICAN BUSINESS AND ECONOMYNovember 1, 2023 at 3:59 PM UTC

The European Union is planning to invest $63 million in the upgrade of one of Uganda's largest hydropower plants, which will help address a financing gap for the country's aging energy infrastructure.

The Nalubaale and Kiira hydropower plant complex, situated at the source of the River Nile in Jinja, Uganda, generates approximately 380 megawatts (MW) and is the country's oldest power plant, commissioned in 1954. The facility was previously operated by South African power company Eskom under a 20-year concession that concluded earlier this year, after which the Ugandan government regained control.

The investment will focus on rehabilitating the Kiira and Nalubaale hydropower plants, with the aim of providing reliable energy to support Uganda's industrialization efforts. Jan Sadek, the EU's ambassador to Uganda, made this announcement at a mining conference in Kampala, Uganda's capital.

Key Takeaways

Uganda currently has an installed capacity of approximately 1,400 megawatts (MW) of power, primarily generated from its hydroelectric dams. This capacity is expected to increase to 2,000 MW when the Chinese-built Karuma plant, also located on the River Nile, is commissioned later this year. The East African country's energy infrastructure faces underfunding, and the aging components of the network have led to widespread power outages and occasional breakdowns. The investment in upgrading and rehabilitating key power plants, such as the Nalubaale and Kiira hydropower plants, is essential to address these challenges and provide a more reliable and stable power supply to support the country's industrialization and economic growth.

Uganda

European Union

Nalubaale and Kiira

Electricity

Power

Energy