Year in review 2013

Introducing the projects

The location of all projects that have been approved for GET FiT support are indicated on the map below (figure 10). Naturally, most of the proposed hydropower projects are located on the rivers of south-western Uganda..
 

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  1. Nyamwamba. Run-of-river HPP with an installed capacity of 9.2 MW and 36 GWh annual production. Project is located in the Kasese district. Investment of 26.8 MUSD with 5.8 MUSD in GFPPM commitments. Expected COD is Q2016. The project has all of the required licenses and signed DFA. It has been confirmed to the Secretariat that construction start was scheduled for June 5th, 2014. Groundbreaking has been postponed due to flooding.

  2. Rwimi. Run-of-river HPP with an installed capacity of 5.5 MW and 27 GWh annual production. Project is located in the Kasese district. Investment of 20.8 MUSD with 3.9 MUSD in GFPPM commitments. Expected COD is Q2 2016. The project has all of the required licenses and signed DFA. PPA and IA negotiations are in advanced stages. The project is nearing financial close and construction start, expected in summer 2014.

  3. PH Industrial Farm’s. 1 MW biomass (gasified maize farm waste) plant in Gulu Region. Expected annual production is 7 GWh. Total investment of 3.5 MUSD with 0.5 MUSD in GFPPM commitments. Expected COD in mid-2015. The developer has carried out a successful EPC tender and is prepared for implementation. However, key condition precedents must first be fulfilled before DFA signing – an updated Environmental and Social Impact assessment which meets IFC performance standards and a complete fuel supply study.

  4. SAIL Cogen. 6,9 MW biomass (bagasse from sugar production) plant in Kaliro district. Expected annual production is 104 GWh (roughly half of this, up to 48 GWh goes onto grid, while the remaining will supply energy for the sugar production on site). Investment is 21.6 MUSD with 2 MUSD in GFPPM commitments. Expected COD by end of 2014. The generation unit is already supplying the sugar factory. However, the appraisal revealed that the developer is lacking specific licenses, which are listed as strict conditions to DFA signing. Further, the appraisal team raised critical questions regarding the generation estimates that require clarifications. REA is currently constructing the interconnection facilities. Given that the plant is already operational, the developer only has to meet the formal requirements, including PPA-signing, for COD.

         
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            SAIL: biomass cogeneration facility and biomass storage in front of sugar factory

     

  5. Kikigati. Run-of-river HPP with an installed capacity of 16 MW and 115 GWh annual production. Project is located in the Isingiro district. Investment of 64.4 MUSD with 12.3 MUSD in GFPPM commitments. Expected COD is in 2016, although with a considerable risk. As noted in the Annual Report, the Kikigati plant is the subject of bilateral discussions between Uganda and Tanzania. It is expected that the proposed bilateral agreement will be addressed during the EAC Heads of State meeting, tentatively scheduled for June 2014. This will likely be a decisive point for the future of the project, and as to whether or not GET FiT will continue to set aside funds for it.

  6. Kakira Cogen. 20 MW biomass (bagasse from sugar production) plant in Butembe County. Annual production is expected to be 147 GWh. Total investment is 60.7 MUSD with 7.3 MUSD in GFPPM commitments. Expected to achieve effective GET FiT COD by end of 2014. This project is also already producing power and also delivering power to the grid, although the PPA is still being negotiated. As noted in this Annual Report, there is a possibility that an agreement is reached on the PPA that awards the developer a tariff outside of the REFiT regime. This would require a reassessment of the support to the project under GET FiT.

  7. Nengo Bridge. Run-of-river HPP with an installed capacity of 6.7 MW and 35 GWh annual production. Project is located in the Kanungu district. Investment of 30 MUSD with 5.1 MUSD in GFPPM commitments. Expected COD is Q1 2017 The project is making progress regarding further geotechnical investigations and full financing. The developer is only now working on submission of a generation license application and financial close is expected by end of 2014.

  8. Muvumbe. Run-of-river HPP with an installed capacity of 6.5 MW and 31 GWh annual production. Project is located in the Kabale district. Investment of 14.1 MUSD with 4.5 MUSD in GFPPM commitments. Expected COD is Q4 2016. Despite only being approved in the second round, the developer has good momentum with a technically relatively simple project with good fundamentals. However, the developer must make a comprehensive update to the ESIA before the DFA can be signed.

  9. Lubilia. Run-of-river HPP with an installed capacity of 5.4 MW and 25 GWh annual production. Project is located in the Kasese district. Investment of 18.7 MUSD with 3.2 MUSD in GFPPM commitments. Expected COD is Q4 2016. The project is being developed by Frontier, who is also promoting Siti I & II, and Kakaka (not approved). Thus, the developer has a major stake in the sector and GET FiT. Notably, the developer intends to construct Lubilia and Kakaka in parallel, thus attaining cost efficiencies. Given the non-approaval of Kakaka by the IC, it is unclear what consequences this will have on Lubilia. Nonetheless, Lubilia is treated in isolation and been given time-bound conditions for both DFA signing and disbursements.

  10. Waki. Run-of-river HPP with an installed capacity of 4.8 MW and 25 GWh annual production. Project is located in the Bulisa district. Investment of 18.1 MUSD with 3.6 MUSD in GFPPM commitments. Expected COD is Q2 2016 Waki is expected to receive its generation license and sign its DFA within Q2 2014.There are some important concerns regarding evacuation of the power from Waki to demand centers. This concerns all actors – the developer, UETCL and GET FiT. The eventual solution is specific to Waki, but the problem of interconnection and integration affects most projects in the portfolio. ERA, MEMD and UETCL appear to now be taking this challenge seriously and in a coordinated manner.

  11. Siti I. Run-of-river HPP with an installed capacity of 6.1 MW and 29 GWh annual production. Project is located in the Kyosoweri, Eastern Uganda. Investment of 14.8 MUSD with 3.6 MUSD in GFPPM commitments. Expected COD is Q2 2016. Both Siti I and II have generation licenses and are expected to sign their DFA’s within Q2 2014.  

  12. Siti II. Run-of-river HPP with an installed capacity of 15 MW and 72 GWh annual production. Project is located in Kyosoweri, Eastern Uganda. Investment of 34 MUSD with 10.2 MUSD in GFPPM commitments. Expected COD is Q4 2016. To evacuate power from Siti II, the existing medium voltage grid in the area is not sufficient. Considering the potential for additional generation in the region, UETCL intends to construct a 132 kV line. KfW is working actively with UETCL, development partners and the developer to facilitate the timely development and implementation of the transmission line.