TotalEnergies, a global integrated energy company, has acquired a 28.3% stake in the Bujagali hydropower plant, a critical power generation facility.
The acquisition marks a huge milestone in TotalEnergies’ expansion into Africa’s renewable energy market and underscores the company’s commitment to supporting Uganda’s energy transition.
Located on the Victoria Nile River, approximately 15 kilometers north of Jinja, the Bujagali hydropower plant is a run-of-river power station with an installed capacity of 250 MW. The plant, which began commercial operations in 2012, harnesses the energy of the Nile River to generate electricity, using a dam to divert water into a 1.5-kilometer canal, which drives five turbines to produce electricity. The plant’s output is fed into the national grid, providing clean and reliable electricity to homes, businesses, and industries across Uganda.
The acquisition is part of TotalEnergies’ strategy to increase its presence in Africa’s renewable energy sector and contribute to the continent’s energy transition. The company has set ambitious targets to reach net zero by 2050 and is building a world-class portfolio of renewables and flexible assets to deliver clean firm power to its customers.
“We are delighted to become a player in hydro power in Uganda, a country where we are also developing a major oil project,” said Patrick Pouyanné, Chairman and CEO of TotalEnergies.
Pouyanné added, “This acquisition reflects our desire to contribute to the continent’s energy transition by bringing electricity to the people of African countries.”
The Bujagali hydropower plant is a critical component of Uganda’s energy infrastructure, providing over 25% of the country’s peak electricity demand. The plant’s output will help support Uganda’s economic growth and development, powering homes, businesses, and industries across the country.
TotalEnergies’ investment in the Bujagali hydropower plant demonstrates the company’s commitment to supporting Uganda’s energy transition and reducing its carbon footprint. The acquisition is expected to boost Uganda’s energy sector and increase access to electricity in the country, supporting the government’s efforts to achieve universal electricity access by 2030.
The acquisition is also seen as a positive development for the Ugandan economy, with the potential to attract further investment in the energy sector. “This acquisition is a testament to the attractiveness of Uganda’s energy sector and the government’s efforts to create a conducive investment environment,” said Ms Ruth Nankabirwa Ssentamu, Minister of Energy and Mineral Development.
TotalEnergies’ entry into Uganda’s renewable energy sector is expected to bring new expertise and technologies to the country, supporting the development of the sector and increasing access to clean energy. The company’s investment in the Bujagali hydropower plant is a significant step towards achieving Uganda’s renewable energy targets and reducing the country’s reliance on fossil fuels.
The acquisition is subject to certain conditions and is expected to be completed in the coming months. TotalEnergies will acquire the stake in the Bujagali hydropower plant from SN Power, a Norwegian renewable energy company, which has been a shareholder in the plant since its construction.
