Medium Term Objectives:
To put in place enabling policies and legislation for sustainable development and exploitation of the country’s energy and mineral resources.
To establish the country’s energy and mineral potential. To produce petroleum and mineral resources for local consumption and export.
To increase electricity production, rural electricity access, and renewable energy installed capacity. To increase competition in petroleum supply and distribution to curb products’ adulteration and attain reasonable pump prices.
To reduce the impact of geo-tectonic disturbances and radioactive emissions for disaster preparedness.
To attain eﬃcient utilization of energy resources.
AN OVERVIEW OF THE PRESENTATION
The presentation focuses on Sector Performance and progress made in regard to the 2016-2021 NRM Manifesto, Presidential Strategic Guidelines and Directives and the NDP II. It covers:
- Power Sub-sector;
- Oil and Gas sub-sector; and Minerals sub-sector.
Over the medium term, the Ministry has aligned its priorities to the NDP II and in the NRM manifesto, 2016-2021 as follows: -
- Increase affordable Power Generation and expand Power.
- Transmission and Distribution Infrastructure.
- Increase access to affordable modern energy services through rural electriﬁcation and renewable energy development.
- Promote and monitor petroleum exploration and development in order to increase the reserve base and achieve local production.
- Develop petroleum reﬁning, pipeline transportation, bulk storage and transportation infrastructure.
- Streamline petroleum supply and distribution.
- Promote and regulate mineral exploration, development, production and value addition.
In line with the NRM Manifesto Commitments and H.E. The President’s Strategic Guidelines and Directives for the
Term 2016 – 2021, the sector has prioritized the implementation of the following: -
a) Lower the cost of electricity produced by Bujagali Station from US $11 to US $6.
b) Expand the transmission and Distribution Network.
c) Increase access to modern forms of energy Areas.
d) Expedite the granting of Oil Production licenses so that actual production starts;
e) Rectify the weaknesses in the Minerals Department to develop the mining sector to provide the raw materials for industries.
f) Expedite the fertilizer projects at Sukuru Hills and Mwitanzigye (Lake Albert).
g) Equip the DGSM with a modern laboratory to test and, therefore, help to quantify the mineral presence in an area and determine its quality.
h) Register all the artisan miners and the minerals they mine should be declared so that it is exported through formal channels.
Power Generation Projects at various stages of development;
- Karuma Hydro Power Project (600MW): Construction works have progressed to92% and is expected to be commissioned in December 2019.
- Isimba Hydro Power Project (183MW): The plant was successfully commissioned by HE President of Uganda on the 21st/March/2019.
- The Total installed generation capacity now at 1202MW.
- Achwa/Agago HPP (42MW): The plant is being developed by IPP and is undergoing final commissioning tests. Commissioning is planned for august 2019.
- Muzizi (44.7MW): bid evaluation for Technical proposals for potential EPC contractors fpr Muzizi HPP was completed and now waiting for a NO Objection from financier-KfW. The target is to sign the EPC contract by end of august 2019.
- Nyagak III (5.5MW): GOU provided bridge financing to the Nyagak III HPP and construction resumed in April.
- Kiba HPP (330MW): this power project being developed as an Independent Power Producer on a Build Own Operate and Transfer (BOOT) arrangement. Feasibility studies are expected to be completed in June 2019.
When Isimba and Karuma HPP are commissioned and fully absorbed/utilized, it is expected that the weighted generation tariff will reduce from the current US Cents 6.47/kWh (Ush. 243.43) to US cents 5.34/ kWh (Ush.200.93), representing a reduction of 17.45%.
All the remaining GET Fit projects to a tune of 75.8MW are under development with planned commissioning in the FY2019/20.
The projects are; Waki SHPP (4.8MW), Siti II SHPP (16.5MW), Kyambura SHPP (7.6MW), Sindila SHPP (5MW), Ndugutu SHPP (5.9MW), Nyamagasani SHPP I (15MW), Nyamagasani II (5MW) and Kikagati SHPP (16MW).
Geothermal Energy Resources Development: Exploration for geothermal energy has been carried in the main geothermal areas.
- Three areas in Kibiro, Panyimur and Buranga have reached advanced stages of surface exploration. Drilling of Temperature Gradient Wells (TGW) is to start at Kibiro and Panyimur in 2019.
- The results of the TGW will be a basis for a feasibility study that will involve drilling of deep exploration wells and installation of a pilot power plant for electricity production and direct use in industry and agriculture.
- To attract private sector participation in geothermal development, Government is developing the geothermal policy and legislation.
- The policy will provide the basis for capacity building both in human resource and equipment, and selection of the best business and financial models of each prospect and proceed with the development of the geothermal resources of Uganda.
Initiatives to ensure reduction of retail electricity tariffs:
- Electricity Regulatory Authority (ERA) has put in place means of tariff reduction starting with the tariff for manufacturers to make our local goods competitive in the regional and globe market.
- This is being done in a phased approach starting with Extra Large, Large, medium, commercial through to domestic and street lighting customer categories.
- The target of 5 US Cents has been achieved during off-peak hours for extra-large consumers. This was possible following the conclusion of refinancing Bujagali (tariff reduced from 10.1 US Cents to 8.3 US Cents.
- Government aims at gradually lowering the tariff for individual residential and social service centres such as schools, and Hospitals.
- Least cost power generation (Large Hydro projects).
- Increase the load factor of the power plants hence reducing the tariff by putting in place measures to grow the energy demand:
a) electrification of industrial parks.
b) implementation of the Free Connection Policy to get more households, businesses and industries consuming electricity.
c) Power export to the Region under the Eastern African Power Pool and to Eastern DRC.
Government commissioned electricity transmission projects totaling to 630km. This brings the total length of High Voltage grid coverage to 2258km.
- 132kV Mbarara - Nkenda 160km Transmission Line and associated substations project completed and energized on 19th February, 2019.
- 220kV Kawanda-Masaka transmission line and associated substations, 137km, (Masaka, Kawanda and Mbarara) project completed and energized on 19th December, 2018.
- 220kV Mbarara- Mirama 65km power transmission line and associated substations project completed and energized on 7th December, 2018.
- 220kV Nkenda-Fort Portal- Hoima, 226km, power transmission line and associated substations (Nkenda extension, new Hoima and Fort Portal extension). Commissioned on 14th August, 2018.
- Upgrade of Queensway 132/33kV substation was completed. The station was energized on 31 May, 2017 and officially commissioned on 17th August 2018.
- 132kV Isimba- Bujagali 42km transmission line was successfully energized on 26th November 2018 and commissioned on 21st March 2019.
- Karuma Interconnection Projects (Karuma-Kawanda 400kV 254km, Karuma-Lira 132kV 75km, and Karuma-Olwiyo 400kV 60km lines and associated substations).
Construction on going and is at 70% completion.
The project’s projected completion is in December, 2019.
- Industrial Parks and associated substations (Namanve SouthNamanve 132kV transmission line 10km; Namanve-Luzira 132kV transmission line 31km; Nalubaale-Namanve 132kV transmission line, Mukono T-off 5km; Nalubaale-Tororo 132kV line; Tembo Steels Ltd T-off 12km.
ü The substations works were completed.
ü Transmission lines are at 50% completion.
The project is projected to be commissioned by April, 2020.
- Tororo-Opuyo-Lira 132kV: 76% complete.
- Bujagali-Tororo-Lessos 220kV: 75% complete; Expected to be completed by December 2019.
- 132kV Mutundwe-Entebbe Transmission Line, 35km.
ü Works have started.
ü The project is expected to be completed by February 2020.
- 132kV Opuyo-Moroto Transmission Line, 168km and associated substations.
ü Works have started.
ü The project is projected to be completed by February 2020.
- Opuyo substation upgrade (in Soroti).
ü Works are ongoing at 40%.
ü Planned completion is September 2019.
Kawanda-Kapeeka, 132kV project. Construction ongoing with commissioning expected in June 2019.