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    Home > Chemicals Industry > International Chemical > Investment in Uganda's transmission and distribution network needs will reach US$4.5 billion over the next decade

    Investment in Uganda's transmission and distribution network needs will reach US$4.5 billion over the next decade

    • Last Update: 2022-12-28
    • Source: Internet
    • Author: User
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    According to Uganda's Ministry of Finance, Uganda needs $4.
    5 billion to invest in transmission and distribution networks
    over the next decade.
    Of that amount, the transmission sector needs $3.
    5 billion, which the government will look for on its balance sheet
    .

    The Treasury Department said most of the money will be used to build new substations and upgrade old ones, transformers, cables, poles or pylons, backup generators, various spare parts and extend transmission networks
    .

    Currently, components of various parts of the grid have aged or have not reached many areas, which means that public programs such as rural electrification are affected
    .

    Uganda reportedly has a financing gap of $1 billion, which will be covered by social financing, including international agencies and businesses
    , for the distribution network.

    "Private financing is premised on the renegotiation of the Umeme concession (including extending its term and reducing its return on investment) or replacing Umeme with another company, allowing the government to guarantee the franchise to make the required investment at a reasonable rate of return
    .
    " Local media reported
    .

    Earlier reports appeared to indicate that the government was considering whether China's State Grid should invest in it, which has expressed interest in upgrading and expanding Uganda's transmission and distribution network
    .

    According to the Electricity Regulatory Authority (ERA), the installed generation capacity in Uganda has increased from 180MW in the mid-90s to 932 MW
    .
    Next year, the Karuma and Isemba dams, which will add 783MW to the grid, will be commissioned, meaning Uganda's installed capacity will increase to 1,715MW.

    In other words, as Uganda's power generation capacity continues to increase, if the transmission and distribution infrastructure is insufficient to absorb this electricity, it will cause waste of power generation resources and insufficient power supply for consumers
    .
    The Ugandan government is clearly aware of this and plans to improve the national electricity system
    , including through social financing.

    According to Uganda's Ministry of Finance, Uganda needs $4.
    5 billion to invest in transmission and distribution networks
    over the next decade.
    Of that amount, the transmission sector needs $3.
    5 billion, which the government will look for on its balance sheet
    .

    Transmission and distribution

    The Treasury Department said most of the money will be used to build new substations and upgrade old ones, transformers, cables, poles or pylons, backup generators, various spare parts and extend transmission networks
    .

    Currently, components of various parts of the grid have aged or have not reached many areas, which means that public programs such as rural electrification are affected
    .

    Uganda reportedly has a financing gap of $1 billion, which will be covered by social financing, including international agencies and businesses
    , for the distribution network.

    "Private financing is premised on the renegotiation of the Umeme concession (including extending its term and reducing its return on investment) or replacing Umeme with another company, allowing the government to guarantee the franchise to make the required investment at a reasonable rate of return
    .
    " Local media reported
    .

    Earlier reports appeared to indicate that the government was considering whether China's State Grid should invest in it, which has expressed interest in upgrading and expanding Uganda's transmission and distribution network
    .

    According to the Electricity Regulatory Authority (ERA), the installed generation capacity in Uganda has increased from 180MW in the mid-90s to 932 MW
    .
    Next year, the Karuma and Isemba dams, which will add 783MW to the grid, will be commissioned, meaning Uganda's installed capacity will increase to 1,715MW.

    In other words, as Uganda's power generation capacity continues to increase, if the transmission and distribution infrastructure is insufficient to absorb this electricity, it will cause waste of power generation resources and insufficient power supply for consumers
    .
    The Ugandan government is clearly aware of this and plans to improve the national electricity system
    , including through social financing.

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