Uganda: Much-Needed Solution to Energy Crisis Still a Long Way

…As Uganda searches for a short run solution while awaiting Bujagali to come into operation some four years from now, there are still some disagreements on exactly which type of fuel to use. Industry experts argue that Uganda would halve its generation costs if it opted for Heavy Fuel Oil (HFO) instead of the light diesel being used. Dr Frank Sebbowa, the head of ERA in an earlier interview said Aggreko, which is generating power using ordinary diesel ought to be wound up because of the prohibitive cost of the deal.

The plant is estimated to cost Uganda $340 million when Aggreko’s contract runs out, enough to finance a hydro power plant. ” I think it will be cheaper for Uganda to terminate the Aggreko contract even with the penalties involved” Sebbowa said.

However, informed sources said the Energy Ministry’s lead technocrat, Kabagambe Kalissa, favors another light diesel plant, if only because it will relieve the situation quicker, despite its cost.

Business&Finance has learnt that the Ministry of Energy will soon announce another bid for another 50MW facility, also to use light diesel.

This jostling between government agencies exacerbates the problem and may now create unseen delays.

The (Kampala) Monitor