Economy
Uganda Commissions East Africa’s Largest Solar Plant
By Dipo Olowookere
A solar power plant has been inaugurated on Monday, December 12, 2016, in Soroti, Uganda amid pomp and pageantry.
It is made up of 32,680 photovoltaic panels and the new 10 megawatt facility is the country’s first grid-connected solar plant and will generate clean, low-carbon, sustainable electricity to 40,000 homes, schools and businesses in the area.
Located on a 33 acre plot of land in Soroti District, the power plant has the potential to increase its net output capacity by a further 20MW of solar energy. At peak construction the plant had over 120 local workers involved, including engineers recruited and trained by Access Power and EREN RE.
Present at the commissioning today were Minister of State for Energy, D’Ujanga Simon, together with representatives of Access Power, EREN RE and donors.
The project was developed under the Global Energy Transfer Feed in Tariff, a dedicated support scheme for renewable energy projects managed by Germany’s KfW Development Bank in partnership with Uganda’s Electricity Regulatory Agency (ERA) and funded by the governments of Norway, Germany, the United Kingdom and the European Union.
The GET FiT programme helps renewable energy sources become more affordable and therefore more accessible in Eastern Africa.
The $19 million Soroti Solar Plant is in part funded by the European Union – Africa Infrastructure Trust Fund through the GET FiT Solar Facility equivalent to 8.7 million euros in the form of result-based premium payments per kWh of delivered electricity.
The project is financed by a mix of debt and equity with the senior debt facility being provided by FMO, the Netherlands Development Bank, and the Emerging Africa Infrastructure Fund (EAIF).
Ambassador Kristian Schmidt, European Union Head of Delegation to Uganda said in his speech: “Uganda is a good place to invest in solar energy. The regulatory framework is conducive and Government rightly recognises Uganda’s energy future must be renewable. It is great that this is now triggering private sector interest in solar power generation. The European Union is proud that our grant contribution ensures the realisation of the Soroti Solar Plant, and I hope this is only just the beginning for many more to come.”
The ERA Chief Executive Officer, Eng. Ziria Tibalwa noted, “that the Access Solar Uganda 10MW grid connected solar P.V project we are launching today is so far the largest in the East African region. We are so proud of this outcome of our stable and favorable regulatory environment that has produced such a leading project in the East African Region. We congratulate Access Solar and the people of Uganda upon this milestone.”
David Corchia, CEO, EREN RE, stated: “Soroti solar plant is an excellent textbook example of how collaboration among key local and international stakeholders can result in the successful execution and completion of such a ground breaking project and in tangible progress in the spread of renewable energy across Africa. We wish to express our gratitude and thanks to the organizations and individuals who made the construction of the largest solar power plant in East Africa possible. As a global renewable energy Independent Power Producer we take this opportunity to reaffirm our commitment to the African power sector and we look forward to replicating this model in many other African countries in other districts in Uganda and across the region.”
Reda El Chaar, Executive Chairman, Access Power declared, “We are thrilled to have been given the opportunity to work with our European and Ugandan partners to bring to reality this flagship solar power plant. Soroti raises the bar on what can be achieved through teamwork and we look forward to more collaborative efforts to expand the footprint of clean energy across this mighty continent.”
Jennie Barugh, Head DFID Uganda on the impact of GET FiT: “As an outward-looking nation, the UK fully supports Uganda in its effort to become a middle income country, with bilateral support of £110m this year. Power is an important enabler of development. GET FiT has helped to demonstrate the success of private sector led renewable energy projects; reducing costs to the government and increasing supply to help the people of Uganda to improve livelihoods and economic empowerment, especially for women and girls, so they can stand on their own two feet. Uganda has led the way in this sector and we expect other African nations to learn from and build on the successes of GET FiT. The Soroti plant is also one of the eight renewable energy projects in Uganda to have benefited from the UK Aid supported Emerging Africa Infrastructure Fund (EAIF) – part of the multilateral Private Infrastructure Development Group (PIDG). The UK is committed to supporting and improving the lives of Ugandans – with the vast majority (80%) living without access to clean modern energy – helping Uganda leave aid dependency behind.”
Linda Broekhuizen, CIO of FMO Dutch development bank, underlines the importance of the project: “FMO is a proud supporter of this project. Renewable energy projects like these are fully in line with our aim to positively affect peoples’ lives by supporting development, creating jobs and providing clean and sustainable energy to Uganda.”
Oscar Kang’oro, a Non-Executive Director of the Emerging Africa Infrastructure Fund (EAIF) confirms EAIF’s commitment to supporting solar and small hydro power projects in Uganda: “EAIF is fully engaged in Uganda and to date financed 8 renewable energy projects in the country, including Soroti. I particularly want to congratulate Access and EREN on their vision and enterprise. Our funders at the UK government’s DFID, at The Netherlands DGIS, Switzerland’s SECO and Sweden’s SIDA, see the great benefits that small and renewable generating capacity can bring, particularly in rural and semi-rural areas. This can unlock economic potential, create new economic development opportunities, grow the productivity of public services and improve energy security. Most importantly, the arrival in a district of more dependable and more affordable electricity can transform and enhance the lives of many thousands of men, women and children.”
By Adedapo Adesanya
The Naira opened the new trading week on a negative note on Monday at the Nigerian Autonomous Foreign Exchange Market (NAFEX) and the black market.
At the parallel market, the Nigerian currency weakened against the US Dollar by N5 to sell for N1,380/$1 compared with the preceding session’s rate of N1,375/$1, and at the GTBank FX desk, it shed N1 to trade at N1,373/$1 versus N1,372/$1.
At the official market, it lost 63 Kobo or 0.05 per cent against the Dollar during the session to close at N1,362.84/$1, in contrast to last Friday’s value of N1,362.21/$1.
However, the Nigerian Naira gained N2.30 against the Pound Sterling at the spot market yesterday, quoting at N1,821.29/£1 compared with the previous rate of N1,823.59/£1, and improved against the Euro by 23 Kobo to settle at N1,574.35/€1 versus N1,574.58/€1.
Data from the Central Bank of Nigeria (CBN) showed that interbank forex turnover increased to $92.248 million across 90 deals, from $73.565 million last Friday.
On the policy front, participants believed that the application of the fourth edition of the Foreign Exchange Manual of the central bank, which introduces updated guidelines for foreign exchange transactions and tightening compliance requirements for authorised dealers and market participants, will enhance market flexibility and ease previous restrictions.
Meanwhile, the cryptocurrency market snapped from recent declines, jolted by Strategy’s purchase of 1,550 Bitcoin for approximately $101 million, increasing its total holdings to 845,256 BTC. The company raised $181 million through common stock sales, using the proceeds to fund the bitcoin purchase and increase its cash reserves to $1 billion, pushing the price of the coin higher by 3.2 per cent to $63,731.69.
Cardano (ADA) appreciated by 8.4 per cent to $0.1738, Ethereum (ETH) rose by 5.2 per cent to $1,711.54, Solana (SOL) expanded by 5.1 per cent to $67.82, and Ripple (XRP) improved by 4.9 per cent to $1.18.
Further, Dogecoin (DOGE) jumped by 4.3 per cent to $0.0873, Binance Coin (BNB) soared by 2.7 per cent to $609.50, and TRON (TRX) increased by 0.7 per cent to $0.3274, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $0.9997 and $0.9998, respectively.
By Aduragbemi Omiyale
The federal government has been advised to consider exploring other funding sources to finance its budget deficits.
Speaking with Punch recently, the chief executive of CSA Advisory, Mr Aliyu Ilias, said the current appetite for borrowing by the government cannot be sustained because it elevates debt-servicing costs.
The economist suggested the sale of some public assets and the involvement of the private sector in infrastructure financing for economic growth.
According to him, running to the debt markets to raise funds for the government is not the best route to take, as the reliance on borrowing always leads to higher debt-servicing obligations.
“The more you borrow, the more you are also incurring more debt services,” he said, tasking the government to also capitalise on increased oil revenues stemming from ongoing geopolitical tensions in the Middle East.
“The government can actually sell off some of their assets to raise more money. The government can also, if you look at the revenue we are getting from oil, it’s getting more, especially with this war. It’s another opportunity for us to actually not borrow again,” Mr Ilias submitted.
He also pointed to ongoing tax reforms as another avenue to improve government finances and narrow the fiscal gap.
“The government can also look at tax reform. The fact is that the government does not have money. The only chance for getting more money is to address the financial deficit,” he added.
By Adedapo Adesanya
Crude oil was up by $1 on Monday as Iran and Israel said they had halted attacks on each other following an appeal from US President Donald Trump.
Brent crude futures gained $1.16 or 1.3 per cent to trade at $94.25 a barrel, while the US West Texas Intermediate (WTI) crude futures were up 76 cents or 0.8 per cent to $91.30 per barrel.
Iran’s military said Monday it halted attacks on Israel after the two countries exchanged their most intense strikes in months, further straining an already shaky ceasefire as well as the US-Israeli relationship. Iran, however, said it would resume strikes if Israel continued to hit Hezbollah in Lebanon.
Israel also halted attacks on Iran, Israeli Prime Minister Benjamin Netanyahu said, stopping short of acknowledging a ceasefire that US President Donald Trump said the countries were aiming for.
President Trump said earlier that the US blockade, which was introduced in April, would remain in place “in full force” until a final peace agreement between the two warring nations is reached.
Prices gained more than 5 per cent earlier on Monday after renewed Israeli strikes on Iran and attacks on Lebanon had reduced hopes of an imminent end to the wider war.
Market analysts noted that because of the strikes, investors were concerned that flows through the Strait of Hormuz might remain restricted for longer. Roughly a fifth of the world’s daily supply of oil and liquefied natural gas passed through the waterway before US-Israeli airstrikes at the end of February unleashed the latest escalation of the Middle Eastern conflict.
Yemen’s Iran-aligned Houthis said on Monday they would ban ships linked to Israel from the Red Sea after Israel renewed its military attacks on Iran, adding to concerns about global shipping and energy flows.
In the face of the supply crisis, a sub-group under the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) on Sunday agreed on its fourth oil output target increase in four months. The seven members decided to increase targets by 188,000 barrels per day from July, the same as the June hike, which was adjusted down from monthly increases of 206,000 barrels per day in May and April to take into account the exit of the United Arab Emirates (UAE).
On paper, the sub-group has increased its output quotas from April to June by almost 600,000 barrels per day, but in reality, the group’s production has collapsed due to export cuts by Gulf members, averaging 33.19 million barrels per day in April compared with 42.77 million barrels per day in February.
Saudi Arabia has cut its official selling prices for crude oil to Asia in July for a second month.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism10 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn