Uganda celebrated a significant achievement on Tuesday with the activation of the last unit among the six turbines at the Karuma hydro-power plant, marking a crucial milestone in the nation’s energy infrastructure. The unveiling was confirmed by Uganda Electricity Generation Company Limited (UEGCL).
Situated on the Nile River within Kiryandongo district, approximately 270km north of Kampala, the Karuma Dam boasts a capacity of 600MW. The inaugural unit of this powerhouse successfully underwent trial runs and grid connection tests on March 21, 2023.
Funded by the Export-Import Bank of China, this hydroelectric marvel stands as a linchpin in addressing the escalating electricity demands of the region, thus catalyzing industrialization efforts.
Regarded as a game-changer in alleviating the burden of high power costs hindering Uganda’s industrial aspirations, the project, while laden with increased debt obligations, promises to fortify the nation’s ability to export surplus electricity. Energy economists anticipate a pivotal role for the dam in not only bolstering domestic industries but also facilitating power trade with neighboring nations.
The strategic positioning of the dam positions it to supply power to South Sudan, located approximately 180km away, and the Democratic Republic of Congo, about 200km distant.
In a significant development last year, Uganda and South Sudan inked a landmark Power Sales Agreement, paving the way for the exchange of electricity between the two countries. This accord, signed in the South Sudanese capital Juba, envisages the supply of electricity primarily to key towns in South Sudan like Oraba, Elegu, Kaya, and Nimule, with plans for extension to Juba in the future.
Mr. Stephen Mukitale, an esteemed energy economist, underscores the imperative of maximizing the dam’s potential by leveraging surplus power for export. He emphasizes that to fully reap the benefits of the investment, Uganda must actively engage in power trade with neighboring nations.
Uganda secured 85 percent ($1.44 billion) of the total $1.7 billion project cost from China’s Eximbank to finance the construction of the dam, exemplifying the collaborative efforts driving this transformative energy initiative.
