Green energy: TotalEnergies purchases a power facility in Uganda

As part of its intentions to engage in energy projects, notably renewable energy, TotalEnergies has entered into an agreement with Bujagali Energy Ltd.

The oil business will purchase a 28.3% share in the Jinja hydropower project, which is 80 km east of Kampala, as part of the agreement.

With a 250 MW capacity, the plant provides for a sizable portion of Uganda’s electrical needs.

Additionally, Total plans to purchase minority interests in two ongoing projects in Malawi (360 MW) and Rwanda (260 MW).

In a statement issued on Tuesday, the company stated, “This acquisition of renewable hydroelectric assets and projects in Africa reflects our desire to contribute to the continent’s energy transition by bringing electricity to the people of African countries.”

The chairman and CEO of TotalEnergies, Patrick Pouyanné, said that this deal demonstrates how the oil giant can support oil-producing nations in their energy transition by implementing its multi-energy approach there.

“We believe that TotalEnergies will be a strong asset owner going forward, with the ability to further develop the projects and contribute to the energy transition in Africa,” he stated.

With a gross capacity of 3.7GW, TotalEnergies is involved in numerous hydropower projects around the world. These are 218 MW deployed in Europe, including 19 MW in France, 33 MW in Portugal, and 166 MW in Turkey; additionally, 1.5 GW is being developed in Mozambique as part of the Phanda Nkuwa project; and 2 GW is being developed in India by Adani Green.

In order to meet Tanzania’s and Uganda’s allegedly rising annual electricity consumption of over 5%, Total is also working on renewable energy projects there. Between 500 MW and 1 GW of gross capacity will be installed.

With a power plant in Soroti, Uganda, the company has already made solar investments there. By the end of the next year, it expects to add additional at Tororo and Iganga.

Highlights from the business’s “Sustainability & Climate Workshop” conducted in March of this year reveal that during the next five years, the corporation plans to build a $500 million solar power plant and a 100 million wind power facility in Tanzania.

Uganda anticipates that this move would maintain low electricity rates, a goal that private sector actors have been promoting through the Uganda Manufacturers Association and the Private Sector Foundation Uganda. Due in part to the cost of power for manufacturers, which is currently over 10 US cents per kWh – far more than President Yoweri Museveni’s recommendation of 5 US cents per unit – Uganda continues to have some of the highest business costs in the East African area.

“We are delighted to become a player in the hydropower sector in Uganda, a country where we are also developing a major oil project,” said TotalEnergies.

In Uganda, TotalEnergies collaborates with China National Offshore Oil Corporation and Uganda National Oil Company on oil and gas development projects in the Lake Albert area.

Ruth Nankabirwa Ssentamu, Minister of Energy and Mineral Development, stated: “This is good news because TotalEnergies is involved in fossil fuel activities and this acquisition of stakes in the Bujagali hydropower plant will go a long way.”