Member of the Month – May 2016: SN Power
SN Power to invest in Transformative Bujagali Hydropower Project in Uganda.
The leading international hydropower firm will ensure Sub-Saharan Africa’s most successful public private partnership in the power sector continues to benefit Uganda.The Bujagali Hydropower Project is widely considered the most successful public private partnership in the power sector in Sub-Saharan Africa and has been used as a model for subsequent projects in the region.
Bujagali was commissioned in August 2012, putting an end to years of constrained economic growth caused by an insufficient and unreliable power supply in Uganda.
Key improvements include:
Bujagali replaced thermal generation that cost over 30 US cents/kWh with renewable power at 11 cents/kWh, enabling the GOU to discontinue annual subsides that cost Uganda USD 175 million per year and to channel these savings toward other crucial public sector investments.
Over Bujagali’s nearly four years of operations, the project has provided a reliable backbone for the Ugandan grid, averaging over a 99% contractual availability factor and generating half of the country’s power supply.
Of critical importance to Uganda’s economic competitiveness, Bujagali reduced the marginal cost of electricity generation by 66%, catalyzing strong economic growth since coming online.
About SN Power:
SN Power, which is owned by Statkraft and Norfund, is one of the world’s leading international hydropower firms. With Statkraft, SN Power has a strong industrial foundation built on more than 120 years of developing, owning and operating hydropower projects in Norway and abroad.
Statkraft is wholly owned by the Norwegian state and is the largest renewable energy and hydropower company in Europe, with a total installed capacity of more than 18,000 MW. Statkraft’s gross sales amounted to USD 8.7 billion in 2014.
Norfund is a Norwegian development financial institution, which invests in private enterprises in Africa, Asia and Latin America.
Through Norfund, SN Power has access to significant experience and expertise in conducting investments in emerging markets, particularly in Uganda and Eastern Africa. SN Power’s investment in Uganda will complement the company’s commitment to building sustainable hydropower in Africa, building on prior investments in Zambia’s Mulungushi and Lunsemfwa Power Stations.
Source: www.snpower.com