Uganda:

Geothermal Resources in Uganda (Lexology)

(Courtesy CIA.gov)

In order to reduce the overdependence on hydropower and increase the energy mix, other sources of energy generation are being planned. Uganda is part of the East African Rift System and geothermal exploration has been ongoing since 1993. There are three main exploration areas – Katwe, Buranga and Kibiro – which are located close to the border between Uganda and the Democratic Republic of Congo. Geothermal resources have been estimated as approximately 450 MW.

The GoU has been assisted in capacity building by KenGen and Kenya’s Geothermal Development Company, and has obtained support from the Japan International Cooperation Agency. In order to fast track the process for potential investors in geothermal, the GoU is establishing a separate geothermal resources department, with geothermal issues transferred to this department from the current Geological Survey and Mines Department. This separation replicates the process which is currently happening in Tanzania and highlights a separation required to ensure that geothermal is not unnecessarily overregulated due to being caught between mining and energy departments. As with other East African countries, projects in Uganda are eligible for grants from the Geothermal Risk Mitigation Facility which has been set up by the African Union, the EU Development Fund for Africa and the German Development Agency in cooperation with KfW.

In early 2013 UETCL entered into a PPA with a project company formed by the joint venture of AAE Systems Inc, a US firm, with local investors, in respect of an up to 200 MW geothermal power project in the Katwe exploration area. Other overseas investors have also been awarded geothermal licences (with a three year exploration period pursuant to the current Mining Act), but so far these have not advanced into the development stage.

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