TotalEnergies has signed an agreement with Bujagali Energy Ltd to invest in renewable energy projects, particularly hydropower, in Uganda. The deal grants TotalEnergies a 28.3% stake in the Bujagali hydropower plant, located in Jinja, 80km east of Kampala. This plant, with a capacity of 250 MW, meets a substantial portion of Uganda’s electricity needs.
Expanding Renewable Energy Investments in Africa
In addition to Uganda, TotalEnergies will acquire minority stakes in two projects under development: a 260 MW plant in Rwanda and a 360 MW plant in Malawi. These investments underscore TotalEnergies’ commitment to supporting Africa’s energy transition and bringing electricity to the continent’s population.
“This acquisition of renewable hydroelectric assets and projects in Africa reflects our desire to contribute to the continent’s energy transition,” the company stated. Patrick Pouyanné, TotalEnergies’ Chairman and CEO, emphasized the company’s strategy to implement a multi-energy approach in oil-producing countries to aid their energy transition.
Global Renewable Energy Projects
TotalEnergies boasts interests in numerous hydropower projects worldwide, with a gross capacity of 3.7 GW. Notable projects include installations in Europe (218 MW in France, Portugal, and Turkey), developments in Mozambique (1.5 GW), and India (2 GW by Adani Green).
In Uganda, TotalEnergies is advancing renewable energy projects to meet the growing electricity demand, increasing at over 5% per year. The company plans to install between 500 MW and 1 GW of capacity in Uganda and Tanzania. Current projects include a solar power plant in Soroti and upcoming plants in Tororo and Iganga.
Impact on Uganda’s Energy Market
Uganda anticipates that these developments will help maintain low electricity tariffs. The cost of electricity in Uganda is currently over 10 US cents per kWh, significantly higher than President Yoweri Museveni’s recommended 5 US cents per unit. Lower electricity costs are crucial for reducing the high cost of doing business in Uganda.
“We are delighted to become a player in the hydropower sector in Uganda,” TotalEnergies remarked. In Uganda, TotalEnergies is also engaged in oil and gas development projects in the Lake Albert basin alongside China National Offshore Oil Corporation and Uganda National Oil Company.
Minister of Energy and Mineral Development, Ruth Nankabirwa Ssentamu, expressed optimism about the acquisition, noting its potential to positively impact Uganda’s energy sector.
Source：theeastafrican.co.ke
