The independent republic of Uganda west of Kenya in eastern Africa covers an area of 236 860 km2. The country’s estimated 1999 population equaled approximately 23 million. The capital city is Kampala. Other major urban areas include Jinja, Mbale, and Masaka. The official language is English, however, Swahili is widely spoken. The local currency is the new Uganda shilling. The international time zone is GMT +3 and the international dialing code is +256.

Uganda has substantial natural resources, including fertile soils, regular rainfall, and sizable mineral deposits of copper and cobalt. The national economy is heavily dependent on agriculture, employing over 80% of the work force. Coffee is the major export crop and accounts for the bulk of export revenues. Since 1986, the government, with the support of foreign countries and international agencies, has worked to rehabilitate and stabilize the economy by undertaking currency reform, raising producer prices on export crops, increasing prices of petroleum products, and improving civil service wages.

Energy and power sectors

The Ministry of Natural Resources is responsible for Uganda’s energy. The Uganda Electricity Board, UEB, is responsible for electricity generation and supply in Uganda. Other energy related functions come under direction of the Ministry’s Directorate of Energy and Minerals. Much of Uganda's power is generated by hydro power. The Owen Falls hydro station is the largest at 177 MW.

Energy consumption in Uganda is now beginning to increase again after a decline between 1970 and 1990, resulting from the country's political instability. The country’s estimated 1997 total electrical installed capacity equaled approximately 162 MW, of which 155 MW was installed in hydropower. Uganda’s total electrical consumption was estimated as 616 GWh in 1997. 115 GWh of power was exported in 1997. Uganda exports 18 percent of its total capacity to Kenya, Rwanda and Tanzania.. Over 99 percent of the country’s electrical power is supplied by hydropower.

Uganda plans to privatize the board's power distribution division so that it may concentrate on power generation, particularly from Owen Falls, the second part of which is under construction. Uganda has already given licenses to two independent power producers to build power stations along the Nile River.

Hydropower development

Uganda's future power development is based on increasing use of the country's available hydropower potential. Hydropower potential is estimated to be more than 200 MW, with firm annual generation 12 500 GWh/year (excluding the abundant mini and micro hydro potential).

A national Energy Mater Plan Study is soon to be completed. The plan will identify all potential hydro sites throughout the country. A majority of the country’s potential is found on the River Nile.

Only 186 MW of the country’s hydro potential has been developed. Most of this is at Owen Falls (180 MW) on the River Nile. There are also three small and mini plants. Owen Falls, with 10x15 MW units, is the only major power station in the country. Owen Falls is undergoing an extensive upgrade that will add 200 MW to the station’s capacity. The Owen Falls II project has been awarded to two Italian companies, Impregilo and Salina.

A project to build a 180 MW hydroelectric power plant at Karuma Falls was to begin in 1999. The plant will be built and operated by Norpack Power Ltd, a Norwegian group, and Pakwach Power Plant, a Uganda company. A 10-12 MW hydropower station is also planned at Muzizi.

The private 290 MW Nile Independent Power Project is planned at Bujagali, downstream from Owen Falls. AES Corporation (USA) and Madhvani International (South Africa) are developing the project. Requiring an investment of UD$ 450 million the station is scheduled for commission in 2002. Generated Power will be sold to neighbouring countries. Construction is scheduled for completion by 2001.

Small hydro

There has been very little development of small, mini or micro hydro in Uganda. Approximately 8 MW has been developed at four sites. Estimates of potential capacity equals 46 MW identified at 16 sites. UEB developed two sites and private developers another two. These sites include Mubuku II (5 MW), Maziba I (1 MW), Kisizi (0.075 NIW) and the 1.25 MW Kikagati station (which has now been decommissioned). Other are at various stages of planning, including: Muzizi(10 MW), Paidha (7.5 MW), and Ishasha (4.5 MW).

The are numerous potential micro hydro stations throughout the country, however, external funding agencies consider these too small or uneconomic to develop. UEB is now aiming to identify available micro hydro potential.