Last week, the Uganda Electricity Generation Company Limited (UEGCL) signed a memorandum of understanding (MoU) with a Norwegian power company, W. Giertsen Energy Solutions for the development of renewable energy projects.
Under the MoU, renewable energy projects (including solar power plants, solar water pumping systems, and hydro-solar hybrid power plants) will be implemented specifically for rural areas by having off-grid and mini-grid systems, the Monitor reported.
Media quoted a statement from UEGCL, which read: “In this regard, UEGCL will also work with the Rural Electrification Agency in some of these rural projects.”
The partnership will also explore the option of having pilot off-grid solar solutions targeting mainly community facilities such as health care centers and schools.
On completion of a successful pilot project, the idea could be sold to government and rolled out under different national programs, media reported.
Energy mix strategy
Media also cited the press release stating that some of these could also be construed as Corporate Social Responsibility (CSR) activities given the scale of implementation.
In line with the National Vision 2040, UEGCL’s Strategic Direction 2015-2017 prioritized the implementation of an energy mix strategy as a means of reducing dependency on hydropower, and thereby diversifying the portfolio of power generation, media stated.
UEGCL further emphasized that: “The partnership will go a long way in opening up opportunities for further cooperation between the Norwegian government and UEGCL in the areas of renewable energy development and capacity building.”
Renewable energy projects
Earlier this month, the commissioner for renewable energy resources at the ministry of energy, John Tumuhimbise, announced that the government has set up a renewable energy policy framework, which sets policies for increasing the uptake of renewable energy in the country.
Tumuhimbise said: “We have a standardized power purchase agreement for renewable energy projects of up to 20MW to reduce the transactional costs involved in small projects.”