Uganda to Compensate UEGCL for Unused Karuma Production
Monday May 15, 2017  Printer Friendly Email this article

Uganda will pay compensation to the Uganda Generation Company Limited (UEGCL) for the unused production of the Karuma hydroelectric dam, according to a decision by the Electricity Regulatory Authority.

The East African country currently has an energy production of 873 MW against a peak demand of 570 MW. This situation leaves a production surplus of just about 300 MW, which unfortunately cannot be exported because of the narrowness of the national grid and the high cost of the energy.

The Karuma will add even to further to Uganda’s power production capacity when it is fully operational in 2019. The hydroelectric dam will place an additional 300 MW of power on to Uganda’s generation capacity. Unfortunately the country will only see a small increase in demand by 2019.

The construction of the infrastructure required a loan of $ 1.4 billion which the state will have to repay in 15 years.

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