At 83 kWh/year/person, Uganda has one of the lowest electricity consumption rates in the world. At the end of 2014, Uganda's installed electricity generation capacity was estimated at 850 MW.
This represents an increase of 264.38 MW (49%) since the commission and full operation of the Bujagali power plant (250 MW). Peak demand is 550 MW, growing by 10% per year. Currently 14.8% of the population has access to electricity (7% in rural areas).
The proposed Nkenda-Hoima line and associated substations are in line with Uganda's overall energy policy to meet the energy needs of the population for social and economic development.
The transmission line is intended to facilitate the evacuation of electricity generated in the Hoima project area and will serve in the longer term to improve power supply, quality and reliability in western Uganda.
The total capacity to evacuate in this region is 150 MW with other power plants under development in the area such as the Muzizi hydropower plant.
The total cost of the project is 96 million dollars with a contribution of 23 million dollars from AFD to the Ugandan Government. The project is co-financed by the Government of Norway.
The aim of the project is to provide adequate transmission infrastructure to meet Uganda's energy needs and improve the quality and security of electricity access in the region.
It includes the financing of the following components:
- Construction of a new substation in Hoima
- Extension of the Nkenda substation
- Construction of terminal points and interfaces for the Fort Portal substation
The issue of access to electricity for the population in the transmission line construction area will be complemented by another project aimed at increasing the connectivity and accessibility rate, particularly in rural areas, through the implementation of grants and payment mechanisms.