Kakira is a 20 MW biomass (bagasse from sugar production) plant in Jinja District, Eastern Uganda. The plant is designed to deliver 147 GWh/year to the grid.
Over the past two-three years, Kakira has been faced with a considerable reduction in availability of sugar cane, caused mainly by increased local competition in the sugar cane market due to additional sugar factories in the region. This has severely reduced fuel supply to the generation facility, as a significant share of the sugar cane is purchased from outgrower farmers.
In 2016, approximately 60 GWh was delivered from the plant. The availability of cane has seen a further decrease in 2017, where delivered energy accumulated only to 43.5 GWh. This is less than one third of planned annual production. The low production level currently experienced at Kakira results in accumulation of undisbursed funds on the associated financing agreement with GET FiT. Only a limited share of this could be retrieved through to potential production above the stipulated level in later years.
Therefore, money previously allocated to Kakira will be reallocated to projects within the programme that have so far not been allocated a full premium amount due to funding shortages. To increase cane supply, Kakira owners have invested in a new irrigation system and acquired additional land for sugar cane production. This will increase own supply and reduce dependency on outgrower farmers.
On this basis, Kakira reportedly expects to be back at normal production levels by 2020. The future annual production levels for Kakira will also depend on the outcome of ongoing discussions regarding regulatory issues for the sugar industry and the level of competition for sugar cane among sugar factories.