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AfrElec NEWS IN BRIEF AfrElec

minimum operating level of 475.50 metres. majeure on the coal supply agreements with Ugandan shillings ($9.29 million) will be
Last year, during the same period, the Exxaro’s unit for the period starting April 16 earmarked for the evacuation of electricity
lake was only 3 metres above the minimum until one month after a national lockdown to from the Siti II hydropower plant.
operating level owing to low rainfall in the curb the spread of the coronavirus pandemic Umeme intends to build a 33 kV bipolar
catchment area. had been completely lifted. line. The line, which will be 125 km long,
With floods reaching peaks along the lake’s “As Eskom has been taking coal in will run from the Siti hydropower plant to
catchment, coupled with increased electricity accordance with the terms of the supply Mbale via the Bulambuli district. The second
demand in winter, the water authority says agreements, the impact of the force majeure component concerns the construction of a
it also increased water allocated for power event has been largely neutralized,” Exxaro, switching station at Mbale. The electricity
generation to the Zimbabwe Electricity which is one of Eskom’s main coal suppliers, distributor is also installing capacitor banks
Transmission and Distribution Company said in a statement. to stabilise the power supply to the Mbale
(ZETDC). Force majeure is an event referring to industrial area.
Said Munodawafa; “Following the arrival of unexpected external circumstances that Part of the envelope dedicated to the
the upper Kariba catchment peak floodwaters prevent a party to a contract from meeting evacuation of electricity from the Siti II power
at Kariba in June 2020, and due to increased their obligations. plant will be used to compensate the people
demand for electricity, the authority effected affected by all the work. The new facilities
a 4 bn cubic meters upward revision in the should enable the development of the run-
water allocation made for power generation of-river power plant, construction of which
operations at Kariba, increasing it from 23 bn HYDRO began in 2016. The 16.5 MW hydropower
cubics to 27 cubic metres.” plant is owned by Elgon Hydro Siti, a special
Umeme to use $9mn for purpose vehicle set up by DI Frontier Market
Energy and Carbon Fund K/S Fund, a Danish
electricity disposal from private equity fund.
Elgon Hydro Siti has already
COAL commissioned its first power plant, Siti I,
Exxaro Resources says Siti 2’s power plant with a capacity of 5 MW. Like the first, the
Uganda’s Umeme will invest 34bn Ugandan
Siti II hydropower plant is located on the
Eskom withdraws force shillings ($9.29mn) for the discharge of Siti River and was built with funding from
electricity from the Siti II hydropower plant in
the Netherlands Development Finance
majeure on coal deals the east of the country. The 16.5 MW facility Corporation (FMO), half of which ($12
was built by Elgon Hydro Siti.
million) came from its Emerging Africa
South African coal company Exxaro Umeme, one of Uganda’s largest Infrastructure Fund (EAIF).
Resources said on Friday that Eskom had electricity distributors recently announced
lifted force majeure on coal supply contracts an investment of 55.7 bn Uganda shillings
to the state-owned utility’s Medupi and ($15.23 million) to reinforce the electricity
Matimba power stations, Reuters reported. grid in the town of Mbale in the south-east
Eskom had issued letters calling force of the country. Within this package, 34 bn

P14 www. NEWSBASE .com Week 33 20•August•2020