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BMI View: Additional hydropower capacity will enable Uganda to meet rising demand and increase
exports while exposing the power sector to cuts due to droughts. A planned renewables scheme will allow
some diversification of the power sector if implemented. A focus on upgrades and extensions of the
electricity grid will help keep losses low while improving the electrification rate.
Latest Updates And Structural Trends
? Chinese construction company, Camc, has been awarded a USD100mn contract to construct four
substations in Uganda, helping to reduce transmission and distribution losses.
? Ugandan electricity distributor, Umeme, has stated that it requires USD1.5bn to improve the country's
electricity grid infrastructure in line with expected capacity upgrades.
? Norwegian state-owned company, SN Power, has acquired over a 50% share in the Bujagali hydropower
plant. With the plant reportedly operating below capacity, expertise brought in by other firms could help
increase its overall capacity.
? Although investment remains focused on new hydropower capacity, the introduction of the GET FiT
programme has highlighted the wishes of the Ugandan government to increase non-hydropower
renewable capacity in the country. The plan is to fast-track the commissioning of 125 megawatts (MW)
worth of non-hydropower renewable electricity, which could well serve to diversify Uganda's power