Page 9 - AfrElec Week 50 2022

AfrElec POLICY AfrElec

Uganda moving closer to

nationalising electricity sector

SOUTH AFRICA UGANDA’S president Yoweri Museveni is Umeme Limited, another electricity genera-
reportedly moving forward with plans to nation- tor with a 20-year contract, will cease operations
alise electricity generation and distribution, a in 2025, according to News24.
move that would include ousting South Africa’s In a statement, the energy ministry’s prin-
state-owned utility Eskom from the market. cipal communication officer, Solomon Muyita
Museveni is looking to bundle three private said that UEGCL, UEDCL, UETCL had been
electricity companies in Uganda – one handling informed they should prepare to cover the needs
electricity generation (UEGCL), another trans- met by Eskom and Meme Limited.
mission (UETCL), and the third distribution Uganda liberalised the electricity and power
(UEDCL), South African media outlet News24 generation industry in 1999, with the unbun-
reports. dling of the Uganda Electricity Board (UEB).
Eskom Uganda, a local subsidiary and the But Museveni’s government argues that electric-
largest generator of energy in Uganda, has a ity generation and distribution in private hands
20-year concession under a government regu- has become prohibitively expensive.
latory framework that ends in March 2023 and “The reforms are expected to minimise
won’t be renewed. expensive private capital in the Electricity Sub
Currently, Eskom Uganda generated 380MW Sector investments in generation, transmission,
of which 180MW is at the Nalubale power plant and distribution,” said Muyita, as quoted by
and 200MW at the Kira Hydropower plant. News24.™

Zimbabwe minister threatens to

withdraw dormant power licences

ZIMBABWE ZIMBABWE has threatened to revoke licences licences,” she said. “If all IPPs had solar plants
held by independent power producers (IPPs) as what they had claimed when they applied for
that are failing to build projects to help ensure licences, we could have over 2,000MW coming
national electricity security, a senior government from IPPs onto the grid.”
official has said. “We have told ZERA [Zimbabwe Energy
A long-running power shortage worsened Regulatory Authority] to relook at the licences
on November 25 when a major hydro plant at they issued. Some were holding on to licences for
Lake Kariba northwest of the southern African more than five years. Others are using the elec-
country halved output due to a low water level. tricity they generate for their own consumption
With little generation capacity, the power and not directing any to the national grid.”
utility ZESA Holdings (ZESA) is rationing elec- ZESA was by 4pm Zimbabwe time on Sat-
ticity for as long as 12 hours in some areas. It urday (December 10) producing 438MW, yet
is also importing from neighbouring Zambia, demand is around 1, 800MW. Kariba was gen-
Mozambique and South Africa. erating 200MW while Hwange thermal was at
Speaking in parliament in Harare on Decem- 218MW. Another coal-fired facility in Bula-
ber 8, the deputy energy minister, Magna Mud- wayo, the second largest city, was at 20MW.
yiwa, said the country could have been getting ZERA, reports say, has awarded some 70
2,000MW from licensed IPPs if they were pro- licences to IPPs, most of which indicate plans
ducing. However, a few who are online are con- to invest in solar farms. However, a few have
tributing only 15MW. taken off and are contributing the 15MW to the
“There were IPPs with no money and they national grid.™
started looking for money when they got the

Week 50 14•December•2022 www. NEWSBASE .com P9