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His Highness the Aga Khan leaves storied legacy in energy sector
President Museveni waves to His Highness the Aga Khan after the ground-breaking ceremony of Aga Khan University Hospital in Nakawa, Kampala, on December 17, 2015. PHOTO/MONITOR
What you need to know:
- As for WENRECo, Eng Bateebe said it is fully owned by IPS), and has a license to generate, distribute, and sell electricity in the West Nile region up to 2028.
His Highness the Aga Khan IV died in Lisbon, Portugal, on Tuesday at the age of 88, leaving behind a stellar and storied legacy in the media, health, education, and energy, among other sectors.
In the energy sector, he is majorly remembered for Bujagali Energy Ltd (BEL) 250MW hydropower plant, which was commissioned by President Museveni on October 8, 2012.
Construction of the Bujagali Hydropower Plant started in August 2007 to not only guarantee adequate power generation for Uganda in the mid-term, but lower the base cost of electricity in the country.
During its peak construction, the project employed about 3,000 workers, including 2,000 of the most highly-skilled to positively contribute to the Ugandan power sector.
Mr Julius Wandera, the Director Corporate and Consumer Affairs at the Electricity Regulatory Authority (ERA), says commissioning that project has played a transformative role in stabilising Uganda’s electricity sector and boosting economic growth.
ERA is a government agency that regulates, licenses, and supervises the generation, transmission, distribution, sale, export, and importation of electrical energy in the country.
Mr Wandera says before its commissioning, Uganda was grappling with severe power shortages and frequent load shedding, which hindered industrial productivity, business operations, and overall economic performance.
“But the BEL has significantly increased Uganda’s electricity generation capacity, ending the frequent power rationing and supply deficits that had crippled economic activities. The availability of stable electricity led to improved business continuity, enhanced productivity, and a more attractive investment climate,” he said on Wednesday.
He added: “Before Bujagali, Uganda relied heavily on expensive thermal generation, which was costly and unsustainable for consumers and industries. The introduction of Bujagali’s hydropower capacity reduced reliance on diesel-powered thermal plants, leading to lower generation costs and tariff stabilisation.
“The improved energy security enabled the growth of manufacturing, agro-processing, and other energy-intensive industries, directly contributing to economic expansion and job creation.
Reliable electricity also facilitated the expansion of commercial enterprises, banking, healthcare, and ICT sectors.
“The addition of 250MW to the grid increased the power supply reserve margin, reducing the risks of system failures and blackouts. Bujagali also catalyzed further investments in grid expansion, improving electricity access, especially in rural and underserved areas.”
According to him, the commissioning of Bujagali provided critical lessons, built confidence in Uganda’s ability to develop large-scale energy infrastructure projects, and set the stage for additional hydropower developments like Karuma (600MW) and Isimba (183MW), further strengthening Uganda’s energy independence.
“As a hydropower plant, Bujagali replaced significant thermal generation, reducing carbon emissions and aligning Uganda with sustainable energy goals. May his soul rest in eternal peace,” said Mr Wandera.
The Permanent Secretary in the Ministry of Energy, Eng Irene Bateebe, has described the deceased as “a partner with whom the ministry has enjoyed a cordial working relationship.”
“We shared a vision of ensuring energy security for the socio-economic transformation of Uganda, and we condole with the family for such an enormous loss,” Eng Bateebe said, adding that His Highness the Aga Khan majorly left his footprint in Bujagali, with the rest of the projects being in the pipeline.
These include the $400m Green Hydrogen Fertiliser Plant, a new project under discussion for purposes of the Power Sales Agreement, and West Nile Rural Electrification Company (WENRECo).
“Uganda signed a $400m deal for green hydrogen fertiliser plant, which is a joint development agreement with Industrial Promotion Services (IPS), the industrial and infrastructure development arm of the Aga Khan Fund for Economic Development (AKFED), and Westgass International – a Norwegian energy company, for a green hydrogen fertiliser plant.
“The plant will be located at Karuma in Kiryandongo District, and aims to leverage its proximity with the 600 megawatts Karuma hydropower plant, and reduce the country’s dependence on imported fertilisers, therefore strengthening economic resilience and sovereignty,” said Eng Batebe.
As for WENRECo, Eng Bateebe said it is fully owned by IPS), and has a license to generate, distribute, and sell electricity in the West Nile region up to 2028.
“WENRECo inherited a customer base and network of less than 500 customers and 60km respectively within the districts of Nebbi and Arua. These customers were served using diesel gensets running on two islands in Arua and Nebbi, with a cumulative capacity of 1.28MW.
