The power station is located in the community of Ombaci, a suburb of Arua City, approximately 6 kilometres (4 mi), by road, northeast of the city center.[2][3]
Overview
The design calls for a ground-mounted photo-voltaic solar power station with generation capacity of 20 megawatts. The power will be sold directly to the Uganda Electricity Transmission Company Limited (UETCL) for integration in the national electricity grid. A 20-year power purchase agreement (PPA) has been signed between the developers and UETCL to guide the sale and purchase of electricity between the two.[1][2] Construction is expected to start in 2024 and commercial commissioning is anticipated in 2025.[1]
Developers
The power station is owned by AMEA Power, a renewable energy IPP with focus on Africa, Asia and the Middle East. Amea Power created a subsidiary that it owns 100 percent called Ituka West Nile Uganda Limited, a special purpose vehicle company specifically set up to develop, build and operate this solar power station.[1][2]
Costs and funding
The cost of construction has not been disclosed as of December 2023. The Emerging Africa Infrastructure Fund (EAIF), a subsidiary of the Private Infrastructure Development Group (PIDG) has committed to lend US$19 million towards the development of this power station. The PIGD is funded by donor countries: United Kingdom, Switzerland, Australia, Norway, Sweden, Netherlands, Germany and the World Bank Group.[4]
In December 2023, the African Trade and Investment Development Insurance (ATIDI), announced its intention to support this development through its Regional Liquidity Support Facility (RLSF). ATIDI will provide payment guarantees for the benefit of the project on behalf of UETCL. The insurance policy will cover up to six months' worth of revenue for the IPP and be in place for an initial duration of 15 years. The insurance policy makes the investment project more bankable and more secure.[5][6]
^A. Sneha (12 December 2023). "Uganda Signs Deals For Solar Projects". Construct Africa. AL Maryah Island, Abu Dhabi, United Arab Emirates. Retrieved 16 December 2023.