On 7th August, 2024, the Uganda Electricity Generation Company (UEGCL) which manages the Kira/Nalubaale Hydropower Plant (HPP), which has a capacity of 380 MW, recently launched an Internal Performance Contract. This initiative includes the signing of the contract and the introduction of a Project Guide Book to enhance the operational efficiency and management of the power station.
What does this all mean for Ugandans, Uganda, and the Electricity sector?
Let’s start from the beginning, shall we?
The Internal Performance Contract (IPC) for the Kira/Nalubaale Hydropower Plant offers a variety of benefits aimed at improving efficiency, accountability, and overall performance. Some of the key benefits include:
1. Enhanced Performance Monitoring: The IPC establishes clear performance metrics and benchmarks, allowing for consistent monitoring and evaluation of the plant’s operational efficiency.
2. Accountability: By specifying roles and responsibilities, the IPC holds management and staff accountable for their performance, thereby fostering a culture of responsibility and accountability.
3. Operational Improvements: The contract can identify areas for improvement, helping to streamline operations, reduce downtime, and enhance productivity, and avoid backlogs of work.
4. Cost Efficiency: By focusing on performance and efficiency, the IPC may lead to reduced operational costs, which can improve the financial sustainability of the plant over time.
5. Goal Alignment: The IPC aligns the interests of different stakeholders, including management, employees, and investors, around common performance objectives.
6. Knowledge Sharing: The introduction of a Project Guide Book as part of the IPC facilitates knowledge transfer and continuous learning among staff, improving skills and competencies.
7. Stakeholder Engagement: The IPC can enhance communication and collaboration among stakeholders, ensuring that everyone is informed and engaged in the plant’s performance and decision-making processes.
8. Safety and Compliance: Emphasizing performance can help ensure adherence to safety regulations and environmental standards, reducing risks associated with non-compliance and dangerous scenarios.
9. Enhanced Reliability: Focusing on performance can lead to greater reliability and stability of power supply, benefiting consumers and the overall energy sector.
10. Long-term Sustainability: By improving performance and efficiency, the IPC contributes to the long-term sustainability and viability of the hydropower plant.
At the launch, the Minister of Energy and Mineral Development, Hon. Ruth Nankabirwa Ssentamu reiterated that the Kira/Nalubaale HPP is a unique and very strategic asset for the Government given the fact that it is the oldest plant, which has stood the test of time, and is the least cost generation plant within the energy mix.
It should be remembered that Power Generation in Uganda has since the year 2000 increased from a paltry 200 MW, to the current level of about 2000 MW. This includes the Karuma HPP (600 MW) whose units have been fully tested on the grid, and is soon to be fully commissioned.
The Electricity Regulatory Authority (ERA) estimated that as of December 2022, installed electricity capacity in Uganda was 1,402 megawatts (MW) with demand at 843 MW, leaving a surplus of 559 MW.
However, the government has an ambitious electricity generation target of 52,400 MW by 2040 – whether this is achievable is a matter of debate.
However, when the Karuma Hydropower Station commenced commercial operations on June 12, 2024, with an installed capacity of 600 MW, this was projected to boost Uganda’s total capacity by 44% leaving potentially over 1000 MW of excess power generation capacity. However, analysts believe a large, suppressed demand exists, particularly among industrial consumers, due to Uganda’s unreliable transmission and distribution systems.
When the Electricity Connection Policy was introduced in 2018 there was an ambition of increasing Uganda’s electricity access to 60% by 2027 through connection subsidies for consumers located close to the existing network. Over the years, about 300,000 households and businesses have received free electricity connections, benefiting 1.5 million Ugandans.
Implementing an Internal Performance Contract reflects a commitment to continuous improvement, learning and knowledge creation within the power sector. The pursuit of excellence in operation and management of the Power Plant and others that will follow suit.
Great Strides for Uganda!