Rwanda-Uganda power trading reduces dependency on diesel plants

The partnership in power trading between Rwanda and Uganda has notably diminished Rwanda's reliance on diesel power plants, The New Times has learnt. The move follows the successful synchronization of the Shango-Mbarara Interconnection, marking a significant milestone in regional energy collaboration. ALSO READ: Rwanda, Uganda set to deepen energy ties The project facilitating power exchange between the two nations encompasses the construction of the Shango Substation and the Mirama-Shango 220kV Transmission Line, spanning 93.5 kilometers to link Rwanda with Uganda. Power trading operations commenced in June, 2023, prompting Rwanda to decommission all diesel power plants in June 2023. Previously, diesel power plants were operational in Jabana, Gasabo District, Kigali, and Gikondo, Kicukiro District. The Rwandan Government anticipates substantial savings, estimated between Rwf 20 to 24 billion annually, following the discontinuation of diesel power plants. Minister of Infrastructure, Jimmy Gasore, highlighted the strategic shift, saying, We recently began importing power from Uganda as needed. The Rusumo hydropower plant has also contributed significantly. This influx of power has drastically reduced our reliance on diesel-based electricity generation, necessitating the shutdown of diesel power plants. Facilitated by a 220kV transmission line, power exchange between Rwanda and Uganda is managed by Rwanda Energy Group (REG). ALSO READ: Rwf14bn power transmitter to link Rwanda to the region A statement from REG disclosed that the tie line is bi-directional, allowing both countries to import or export electricity as required. Presently, the tie-line can transmit up to 40 MW, with plans underway to upgrade its capacity to 250 MVA in 2024, the statement reads. Furthermore, Rwanda's power grid is interconnected with Uganda, Burundi, Eastern DRC, and Tanzania. Additional projects are underway to establish interconnections with the DRC and Burundi. The successful synchronization of power grids between Burundi, Rwanda, and Tanzania has already been accomplished, marking significant progress in regional energy integration. Jacob Manyuon Deng, the regional power program officer for the Nile Equatorial Lakes Subsidiary Action Programme (NELSAP-CU), emphasized the financial benefits of the collaboration, revealing that Uganda Electricity Transmission Company Limited (UETCL) receives an average of $1.5 million monthly from Rwanda. ALSO READ: Government targets $1.5bn to electrify all households The overarching goal of power interconnection projects is to enhance electricity access, reduce costs, stabilize networks, promote cross-border trade, foster competition, and support clean energy initiatives. The regional landscape for power interconnections is evolving rapidly, with ongoing projects and feasibility studies aimed at further enhancing energy cooperation among neighboring countries. The completion of the Rusumo Falls Hydroelectric Project is poised to bolster energy collaboration among Burundi, Rwanda, and Tanzania, facilitating power trade and regional development. ALSO READ: Exploring Rusumo hydroelectric power plant The Power Purchase Agreement (PPA) signed between the Rusumo Project and utilities of the three countries operates on a 'take or pay model,' ensuring sustainable power distribution and economic viability. As regional energy collaboration progresses, stakeholders are optimistic about the transformative impact on socio-economic development and environmental sustainability across the region.

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Rwanda-Uganda power trading reduces dependency on diesel plants