Uganda sees power supply up 8.6 per cent for 2010

Uganda’s Electricity Regulatory Authority (ERA) has indicated that it expects the country’s power generation grow by 8.6 per cent YoY in 2010, principally as a result of rising investment in hydropower, coupled with rapidly growing demand. The country boasts the third- largest economy in East Africa and is benefiting from heightened interest from foreign investors as a result of the discovery of commercially viable oil deposits within its borders.

Three mini-hydropower stations are expected to be commissioned this year, adding 33MW to the grid and increasing the country’s total generating capacity to an admittedly modest 413MW.

The country is recovering from a severe power crisis back in 2006 and remains subject to frequent supply outages, thanks to a combination of poor planning, inadequate investment and ageing infrastructure. In addition, Uganda’s businesses and households pay some of the highest prices for electricity in the region, but will get some relief after the authorities announced a 10 per cent reduction in tariffs in December 2009. Fortunately, it seems that the high price of power is attracting investment.

There is also light at the end of the tunnel, given the country’s 250MW Bujagali dam is expected to see its first 50MW come online in 2011. When complete, the dam will make a sizable dent in Uganda’s current power deficit, which is estimated to be in excess of 300MW (Reuters)