France and EU Commit $735 Million to Revamp Uganda’s Hydropower Stations, Boosting Clean Energy Efforts
Uganda’s clean energy ambitions have received a significant boost as France and the European Union pledge Shs735 billion ($735 million) toward the rehabilitation of the Nalubaale and Kiira hydropower stations in Jinja. The funding marks a critical step in modernizing Uganda’s oldest power generation infrastructure, ensuring reliability, efficiency, and climate resilience for decades to come.
French Ambassador to Uganda, Virginie Leroy, made the announcement during a recent visit to the two facilities, accompanied by officials from Agence Française de Développement (AFD). She emphasized the broader socio-economic impact of the project, stating that it will not only enhance energy generation but also improve livelihoods, boost businesses, and create employment opportunities across the country.
Constructed in 1954, the Nalubaale plant is Uganda’s oldest hydropower station, with an installed capacity of 180 megawatts, while Kiira, commissioned in the 1990s, generates 200 megawatts. Together, the two facilities form the backbone of Uganda’s electricity grid. However, aging infrastructure and operational challenges have necessitated extensive upgrades to maintain efficiency and safety.
Under the financing agreement, AFD will provide a €73 million soft loan (Shs315.73 billion) and a €2 million grant (Shs8.65 billion), while the European Union will contribute an additional €10 million grant (Shs43.25 billion). Ambassador Leroy noted that further funding approvals are expected by the end of the year, pending completion of government and institutional processes.
The upgrades will include the installation of modern turbines, electromechanical system improvements, and advanced monitoring technologies to optimize power generation and water flow management along the River Nile cascade. George Tusingwire, Acting Chief Executive Officer of the Uganda Electricity Generation Company Limited (UEGCL), confirmed that preparatory processes are already underway, with works set to begin next year.
“This project is not just about energy generation but about ensuring people have access to affordable power to improve their lives and create opportunities,” Leroy remarked. She also highlighted France’s long-standing commitment to Uganda’s energy sector, noting investments exceeding €300 million over the past two decades in projects like the Bujagali Dam and the Hoima transmission line.
The rehabilitation will be implemented in phases, with the first phase focusing on replacing outdated substation systems, upgrading turbines and generators, and modernizing control and protection systems. Civil works will also address structural integrity issues, including cracks caused by alkali-silica reactions, extending the operational lifespan of the plants by at least 30 years.
At Kiira, the focus will be on replacing automation and control systems and rehabilitating dam gates for enhanced safety and efficiency. Tusingwire added that there is potential to increase generation capacity at Nalubaale by an additional 20 to 30 megawatts, though this would require further investment estimated at €83 million.
The project also aims to enhance climate resilience, particularly in response to rising water levels on Lake Victoria, which have posed operational challenges in recent years. Potential long-term measures include increasing spillway capacity, raising dam height, or installing additional generation units to manage higher water flows.
“This rehabilitation is like a full engine overhaul for these plants,” Tusingwire explained. “Just like a vehicle, they require routine maintenance and, at times, a comprehensive upgrade to meet current demands.”
The initiative builds on upgrades carried out by Eskom Uganda Limited during its 20-year management of the facilities, which concluded in 2023. Once completed, the project is expected to stabilize Uganda’s electricity supply, reduce outages, and support the country’s transition to a sustainable, low-carbon economy. It will also reinforce Uganda’s capacity to meet growing energy demand driven by industrialization and population growth.
— Reported by Nexio News
