The total energy consumption in Uganda is estimated at over five million tonnes
of oil equivalent, of which 90% is derived from wood and charcoal. Uganda currently
has an installed electricity capacity of 283 MW, which is insufficient to meet
the growing demand. There is also considerable unmet demand principally from
Kenya, but also from Tanzania and Rwanda. Overall capacity is currently considerably
less than installed capacity due to the water level of lakeVictoria being lower
than normal. This has resulted in considerable load-shedding. The construction
of the 50 MW thermal plant in Kampala is trying to improve the situation albeit
with little success. Further thermal plants are planned to meet the shortfall,
at least in the period before the Bujagali and Karuma dams can be commissioned.
In a bid to liberalise the sector and increase supply, the government has started
discussions with independent power producers. Two major schemes are currently
being planned (at Bujagali and Karuma), which when completed, will increase
the installed capacity by 470 MW. Some smaller hydro electric schemes, sugar
bagasse burning, and thermal schemes are also under construction. The operation
of the hydro electric power station has been concessioned to Eskom of South
Africa. The distribution of electricity has also been concessioned to Umeme,
a joint venture between Globeleq and Eskom.
Uganda has historically had a mining industry based on copper but following
the disturbances of the 1970s, copper is no longer commercially mined. However,
there is considerable interest in reviving copper mining. The major mining investment
at present is Kasese Cobalt Company Limited with French, Canadian and Australian
investors. As well as the revival of copper mining, there are reserves of gold,
phosphate and oil which have not yet been fully surveyed or exploited.
Uganda's petroleum requirements are currently met through imports via Mombasa
or Dar-es-salaam.
Over the last few years, we have been providing financial and tax advice to
companies within the energy and mining sector.
