Renewable energy IPP Building Energy arranged financing for the project along with developing, constructing and commissioning the 10 MW Tororo Solar Plant in Uganda. (Photo Credit: Building Energy)
- A 10 MW solar power project has been commissioned in Uganda by Building Energy
- Tororo Solar Plant is one of the largest solar power projects in Eastern Africa
- It was built for a total investment of $19.6 million, that was arranged in part as a loan facility and as equity contribution of the shareholders
- The plant is developed under a dedicated feed-in tariff support scheme for renewable energy projects
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Uganda now hosts one of the largest PV projects in Eastern Africa – a 10 MW solar power plant that was recently brought online. Tororo Solar Plant was commissioned recently by independent renewable energy producer Building Energy.
The plant is expected to generate 16 GWh of solar power annually. It will also aid clean industrial development of Tororo town. This is Building Energy’s first PV system in Uganda, which it has developed, arranged finance, constructed and commissioned.
Tororo Solar Plant is built with around $19.6 million invested by Dutch development bank FMO. The bank coordinated the provision of $14.7 million term loan facility, 50% of which was syndicated to the Emerging Africa Infrastructure Fund (EAIF) while $4.9 million came as overall equity contribution of the shareholders.
The project was developed as part of the Global Energy Transfer Feed in Tariff (GET FiT). It is a dedicated support scheme for renewable energy projects, managed by Germany’s KfW Development Bank along with the Ugandan Electricity Regulatory Agency (ERA). The scheme is funded by the EU-Africa Infrastructure Trust Fund, the governments of Norway, Germany and the UK. It provides funds in the form of a top-up payment per kWh of delivered electricity for a period of 20 years. This, states a Building Energy statement, helps fill the gap between the generation costs and the feed-in-tariff set by Uganda Electricity Transmission Company Limited (UETCL) through a PPA.