Upon completion, the solar power plant in Kabulasoke, Mubende, funded by the Uganda Development Bank (UDB), will generate 20 MW. Dr. David Alobo, Founder and Managing Director of Xsabo Group, asserts that the plant is Sub-Saharan Africa’s most modern and the largest in East and Central Africa.
Speaking at the UDB annual press conference 2024 at the solarline facility on Wednesday, Dr. Alobo revealed that the plant comprises 38,000 bifacial monocrystalline PV modules, 547 horizontal single-axis solar trackers that adjust the position of the modules to follow the sun as it moves from east to west, 84 string inverters rated at 250 kW each, 3 power stations with communication units, distribution cabinets, transformers, LV sections, bus bar systems, MV switching gear cabinets, and other additional auxiliaries such as smoke detectors and emergency lights, among other modern equipment.
Standing at 80% completion, the UGX 82.6 billion Sub-Station investment project has modules connected in series to form a string of 35 modules, and the whole plant has a total of 1094 strings, with each string generating about 1,400 voltages in direct current form.
“I wholeheartedly thank the Uganda Development Bank for providing the loan facility that has enabled the successful construction of this solar power plant. It will be ready for commissioning before March 31, 2024,” he said.
“With our projects, we at the Xsabo Group are contributing constructively to securing a better future for current and future generations by powering development as a way to pave a path for the people of Africa out of poverty while using commercial diplomacy to spur genuine prosperity. This makes The Xsabo Group part of a growth agenda to build resilience, catalyse sustainable growth, and promote net-zero economic transition in Uganda and across Africa as the world economy moves towards a low-carbon future,” he added.
Officiating at the event, the Minister of Energy and Mineral Development, Dr. Ruth Nankabirwa, noted that the plant, licenced for a period of 21 years, will, upon completion, generate 20 MW and be sold to the government through the Uganda Electricity Transmission Company Limited (UETCL) at US Cents 7.1 Kilowatt Hour, “which is the lowest tariff among the existing solar plants.”
Represented by Dr. Sarah Wasagali Kanaabi, Chairperson, Electricity Regulatory Authority (ERA), Nankabirwa said the power will be interconnected along the 132 kV Kabulasoke-Nkonge Transmission Line and will largely serve electricity consumers connected to the Nkonge and Kabulasoke substations.
“The plant will push the country’s grid-connected solar portfolio to 80.6 MW, joining the other five plants already connected with a combined capacity of 60.6 MW.”
“Nkonge Solar Plant will be the second solar plant proudly owned by a Ugandan, fully constructed and operated by Ugandans. This is a key milestone in Uganda’s energy profile, and it speaks directly to the local content and BUBU policies of the Government of Uganda,” she added.
The minister urged UDB to take a special interest in supporting indigenous developers and investors in the electricity supply industry by providing low-cost financing for infrastructure development.
“This will significantly contribute to lowering electricity tariffs in Uganda, given that the cost of financing is one of the key drivers of the cost of electricity.”
Sharing the bank’s performance for the year ending December 2023, Mr. Denis Ochieng, Acting MD-Uganda Development Bank, said that their cardinal role is to support the revitalization, transformation, and resilience of the country’s economy through supporting the private sector.
He said that through their product and service portfolio, they have been able to promote and develop key growth and priority sectors of the economy, including agriculture (both primary and agro-processing), manufacturing, tourism, and targeted interventions to support infrastructure and human capital development (education and health).
During 2023, Ochieng says the gross loan portfolio grew by 24% to UGX1.6 trillion, compared to UGX1.29 trillion posted in 2022.
“The bank’s funds inched up year-on-year by 12 percent, from UGX1.23 trillion to UGX1.38 trillion, attributed to capital injections by the government during the period and retained and reinvested profits from the prior years, with these sources complemented by additional funding from funding partners. We continue to explore all options to improve our funding base to reach more enterprises, thereby expanding our impact.”
He further stated, “Borrowing and grants experienced a 5 percent increase, reaching UGX245 billion from UGX232 billion in December 2022. Loan repayments amounted to at least UGX466.5 billion, which was reinvested to fund disbursements to various enterprises throughout the year.”
