TotalEnergies and Bujagali Energy Ltd have inked a deal to invest in energy projects in Uganda. The move is part of TotalEnergies’ strategy to invest in renewable energy projects in Africa, reflecting its commitment to supporting the continent’s energy transition.
The agreement encompass a 28.3% stake acquisition in the Bujagali hydropower plant in Jinja, Uganda, which has a capacity of 250 MW and significantly contributes to Uganda’s electricity supply. TotalEnergies will also acquire minority stakes in two other projects under development in Rwanda (260 MW) and Malawi (360 MW). Patrick Pouyanné, the chairman and CEO of TotalEnergies, emphasized the company’s multi-energy strategy, highlighting its role in aiding oil-producing countries in their energy transition.
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TotalEnergies’ global hydropower portfolio includes a gross capacity of 3.7 GW, with significant projects in Europe, Mozambique, and India. In Uganda and Tanzania, the company plans to install between 500 MW and 1 GW of renewable energy capacity, including solar and wind power projects. These efforts are in response to the growing demand for electricity in these countries, which is increasing by over 5% per year.
The Ugandan government and private sector players hope that TotalEnergies’ investments will help reduce electricity tariffs, which are currently among the highest in the East African region. The company is also involved in major oil and gas projects in Uganda’s Lake Albert basin, further solidifying its role in the country’s energy landscape.
According to Minister for Energy and Mineral Development, Ruth Nankabirwa Ssentamu, TotalEnergies’ involvement in renewable energy projects complements its fossil fuel activities and will have a positive impact on Uganda’s energy sector.