After more than a decade of anticipation, Uganda’s Karuma Hydropower Plant has finally been commissioned. Launched in December 2013, the project has navigated numerous hurdles—from technical defects and delays to disagreements between the government and contractors. Yet on Thursday, Karuma marked a significant turning point in Uganda’s journey towards energy security, promising to light up homes and fuel economic growth.
The Karuma power station, located in Kiryandongo district, 270 km north of Kampala, is a tunnel-designed project generating 600 megawatts (MW) at peak. This significant output brings Uganda’s total installed power capacity to over 2,000 MW, a massive leap from the mere 380 MW the country had in 2005. The bulk of this energy is hydroelectric, with a mix of solar and thermal adding to the grid.
A Journey of Obstacles
Karuma’s path to completion was fraught with challenges. Initially budgeted at $1.688 billion—$1.435 billion of which came as a loan from China Exim Bank—the power plant’s construction was delayed by technical issues, including defects in the laying of concrete at the spillway. In May 2016, Sinohydro, the Chinese contractor, admitted the fault and agreed to fix the cracks, ensuring that the dam’s structural integrity remained uncompromised.
Such setbacks echoed similar issues faced at Isimba, a 183 MW hydropower plant upstream from Karuma. Defects at Isimba prompted President Yoweri Museveni to appoint a project steering committee (PSC) to oversee the remaining work on both projects. The pandemic also played a role in slowing construction, as Sinohydro faced travel restrictions that prevented critical engineers from flying in from China.
As the pandemic-related travel bans were lifted, new problems emerged. In October 2021, non-conformities in the electrical-mechanical systems delayed further progress. By March 2022, Sinohydro had resumed work to resolve these issues, though tensions persisted between the Ugandan government and the contractor.
A Long-Awaited Commissioning
Finally, after 11 years of painstaking work, President Museveni officially commissioned the Karuma power plant. In his address, the President stressed the importance of affordable and reliable electricity for Uganda’s future. Karuma’s electricity is priced at 4.97 US cents per kilowatt hour (kWh), making it the fourth least expensive power source in Uganda, after Nalubaale, Kiira, and Isimba.
Reflecting on the decision to pursue a larger capacity dam than originally proposed, Museveni shared how he rejected a Norwegian offer in the 1990s to build a smaller 200 MW dam at Karuma Falls. “I told them that I’ve got somebody who has got a better idea,” Museveni recounted, referring to the eventual Chinese partnership. “The Chinese came in, and they didn’t just say they could do it, but they could co-fund it.”
While the successful commissioning of the dam is a cause for celebration, it has left behind unresolved issues. At least 21 families displaced by the project are still awaiting resettlement. Though President Museveni has offered to provide building materials, there are concerns about environmental risks in the proposed resettlement area, which borders a national park home to elephants.
Looking Ahead: Uganda’s Ambitious Energy Goals
Even with the inauguration of Karuma, Uganda’s energy journey is far from over. According to Energy Permanent Secretary Irene Batebe, the country’s energy ambitions extend well beyond hydropower. “We are not settled because of the commissioning of Karuma,” Batebe stated. “Our target is to achieve an installed capacity of 52,000 MW by 2040.”
To meet this target, Uganda plans to diversify its energy mix, including significant investments in geothermal and nuclear energy. The country aims for nuclear power to account for nearly half of its future capacity, with 24,000 MW coming from this source alone. In 2023, Uganda signed a memorandum of understanding with Korea Hydro and Nuclear Power Company Ltd to build the country’s first nuclear facility, a 2,000 MW plant in Buyende, eastern Uganda. This project, expected to cost $9 billion, signals Uganda’s commitment to long-term energy independence.
Other projects in the pipeline include the 840 MW Ayago hydropower station, which will be built in northern Uganda.
Conclusion
The commissioning of Karuma is more than just the completion of a single project—it symbolizes Uganda’s broader ambition to secure a future powered by affordable, reliable energy. Though the journey was marred by delays, technical issues, and challenges, the power station now stands as a beacon of progress. With a focus on expanding capacity and exploring new energy sources, Uganda is on track to meet its growing electricity demands and support the development of a modern economy.
As Uganda looks towards 2040, the lessons learned from Karuma will be critical in shaping future energy projects. And while some issues remain, such as the resettlement of displaced families, the successful launch of Karuma marks the dawn of a new era in Uganda’s energy landscape.