KAMPALA — Energy and Mineral Development Minister, Ruth Nankabirwa Ssentamu has flagged off the feasibility study and environmental assessment for the 400 MW Kiba Hydropower Project, warning that the country must fast-track new generation to avoid a looming power crisis.
Speaking on Friday during a stakeholder meeting at Amber House, Nankabirwa said the commencement of the study is a critical milestone for a project intended to support Uganda’s industrialization and socio-economic transformation.
The move comes as Uganda faces a tightening electricity supply-demand balance. While the country has an installed capacity of 2,094.1 MW, available firm capacity is only about 1,450 MW due to hydrological variability, transmission constraints and the intermittency of solar generation.
Data from the Uganda Electricity Transmission Company Limited showed peak system demand reached 1,337.15 MW in February 2026, leaving a narrow dependable supply margin.
Nankabirwa noted that demand growth in 2025 reached nearly 20 percent for domestic needs and 21 percent for the overall system. This pressure is driven by large industrial consumers like Devki Steel, Hima Steel and Tororo Cement, which account for 155 MW, alongside data center requests totaling 887 MW.
Uganda also maintains significant regional commitments. The country exported 269.7 MW to Kenya, Rwanda and Tanzania in February. Kenya Power and Lighting Company has already requested an increase in export quantities to 300 MW by 2027.
Projections indicate a deficit of 40 MW for the 2025/26 financial year, which could rise to 217.4 MW by 2027/28 when firm capacity is compared against projected national demand and industrial loads. If this deficit is not addressed, Nankabirwa warned the country faces costly mitigation options including load shedding and increased thermal plant dispatch.
The financial exposure is estimated at UGX 416.98 billion in unrealized revenue and up to UGX 1.03 trillion in additional thermal purchase costs, which could impact end-user tariffs.
The Kiba project is prioritized under National Development Plan IV and the NRM Manifesto. The minister emphasized that while short-term interventions like solar projects provide temporary relief, they cannot substitute for firm, base-load generation like Kiba.
To coordinate the effort, the ministry is establishing a multi-sectoral Project Technical Committee with representatives from the finance and water ministries, NEMA, UWA, the National Planning Authority, UEGCL and UETCL. This committee will oversee the simultaneous preparation of the Kiba, Ayago and Oriang hydropower projects, steering fast-tracked reviews to address any barriers that could slow implementation.
Eng. Irene Batebe, the Permanent Secretary Ministry of Energy and Mineral Development, whose remarks were given by the principal energy officer for electrical power generation.Eng Emmanuel Sande Nsubuga requested consultants to prioritize underground engineering options and biodiversity protection as they begin the comprehensive study.
The study is being conducted by a joint venture of Aban Pazhouh Sering Ingegneria SrL and Ab Niru Consulting Engineers. Gaetano Beninati, representing the consulting engineers, said the study aims to establish technical, environmental and economic viability before implementation.
Beninati explained that the team is exploring several alternatives, including underground powerhouse options and hybrid configurations, to balance energy production with environmental conservation. This shift from earlier surface development concepts aims to minimize the project’s footprint within the protected wildlife area.
The 400 MW run-of-river plant, situated on the Nile corridor downstream of Ayago and upstream of Murchison and Uhuru falls, is expected to generate approximately 2,686.6 GWh annually with a plant load factor of 90.3percent. Current plans involve generating power at 11 kV, which will then be stepped up to 400 kV for evacuation.
Power evacuation planning remains a critical component, with engineers exploring a direct 400 kV line to Olwiyo or a junction connecting Kiba to the Ayago line. Due to the location in a protected landscape, the evacuation infrastructure may require significant underground cabling.
Beninati highlighted several challenges likely to affect the project, including environmental sensitivities, hydrological variability and geological uncertainties. He noted that the team is adopting a risk-informed approach to ensure all risks are mitigated during the process.
The study follows a technical kick-off held April 22 and joint site visits by multi-sectoral stakeholders to the project area and Murchison Falls. Nsubuga noted that while previous studies provided baseline data, the new assignment must rigorously address cumulative impacts within the wider Nile cascade to ensure the project is bankable and de-risked for future investment.
Speaking at the flag off, Herbert Kato, the Contract Manager, emphasized the need to deliver contractual deliverables on an accelerated timeline. He informed the meeting that the ministry has already received the professional liability insurance from the contractor and approved sub-consultants for the environmental and social impact assessment and Geotechnical Investigations.
Preliminary data collection has been undertaken and updated implementation schedule for the feasibility study optimized to take 14 months instead of 18 months. The inception report is expected next week, paving the way for pre-feasibility and subsequent activities under the contract signed on April 10, 2026.
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