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UEGCL’s remarkable progress in financial growth and energy generation is a testament to Uganda’s commitment to sustainable energy development, according to Minister Nankabirwa
Kampala, Uganda | JULIUS BUSINGE | State-owned Uganda Electricity Generation Company Limited (UEGCL) has reported a 60% increase in net profit for the 2023/24 financial year to Shs54 billion.
The announcement was made during company’s 14th Annual General Meeting (AGM), held at the Ministry of Finance, Planning, and Economic Development (MoFPED) headquarters in Kampala on Jan.29.
The AGM, chaired by Proscovia Margaret Njuki, the Board Chairperson of UEGCL, was attended by key government officials, including Ruth Nankabirwa, Minister of Energy and Mineral Development, and Matia Kasaijja, Minister of Finance, Planning, and Economic Development.
The meeting highlighted the company’s strong financial performance, with revenue growing by 2% to Shs351 billion and Profit After Tax (PAT) increasing significantly. This growth was attributed to enhanced revenue streams, cost-efficiency measures, and improved operational performance.
The company’s financial resilience was further demonstrated by an increase in equity, which rose by 6% from Shs894.6 billion in the previous fiscal year to Shs948.9 billion. UEGCL’s total assets also grew by 9%, reaching Shs8.4 trillion, reinforcing its strong position in Uganda’s energy sector.
This robust financial performance reflects UEGCL’s continued efforts to optimize its operations and maximize efficiency.
UEGCL has consistently focused on improving the performance of its key hydroelectric plants, including Isimba (183 MW), Nalubaale-Kiira (380 MW), and Karuma Hydropower Plant (600 MW).
The optimization of these plants has played a significant role in ensuring consistent energy generation while minimizing revenue losses from unplanned outages and operational inefficiencies.
The company’s strategy aligns with Uganda’s National Development Plan IV (NDP IV) and the National Energy Policy, aiming to boost operational efficiency, diversify the energy mix, and expand capacity.
Harrison Mutikanga, the chief executive officer, of UEGCL said, “By implementing advanced asset management and plant maintenance programs, UEGCL has reduced power losses and operational downtime, ensuring a steady revenue stream.”
“The company is also exploring opportunities in electricity exports through the East African Community (EAC) Power Pool initiative, positioning itself as a key player in regional energy markets,” he added.
Power diversification
Currently, hydropower accounts for 90% of Uganda’s electricity supply, making diversification essential to mitigate climate-related risks. UEGCL is actively pursuing an energy diversification strategy, with plans to increase the contribution of solar, geothermal, and biomass energy sources to at least 20% by 2040. The company is advancing key projects, including the 100 MW Panyimur Geothermal Project and the development of solar power farms and biomass cogeneration plants.
These initiatives aim to strengthen Uganda’s energy security and enhance the sustainability of power generation.
To meet Uganda’s growing electricity demand, projected to increase by 8-10% annually, UEGCL is spearheading several large-scale projects.
The country’s installed capacity is expected to surpass 3,500 MW in the coming years, supported by major undertakings such as the 840 MW Ayago Hydropower Project, the 392 MW Oryang Hydropower Project, and the 330 MW Kiba Hydropower Project.
These projects will significantly enhance Uganda’s electricity generation capacity, ensuring a stable power supply for industrialization and economic growth.
Nankabirwa commended UEGCL’s financial performance and strategic vision saying: “UEGCL’s remarkable progress in financial growth and energy generation is a testament to Uganda’s commitment to sustainable energy development.
With strategic investments in hydropower, geothermal, and solar energy, UEGCL is ensuring a stable and reliable power supply while positioning Uganda as a regional leader in electricity generation. The government remains committed to supporting UEGCL in expanding capacity and diversifying the energy mix to meet the growing demands of our economy and the region.”
To sustain its profitability and operational growth, UEGCL is engaging with development partners and private investors through Public-Private Partnerships (PPPs). These partnerships will facilitate the funding of new projects while ensuring long-term financial stability.
The company is also focused on the commissioning of Nyagak III Hydropower Plant, addressing rectification defects at Isimba Hydropower Plant, and rehabilitating Nalubaale and Kiira Hydropower Plants. Additionally, research on floating solar technology is ongoing, underscoring UEGCL’s commitment to clean energy innovation.
The company’s commitment to operational efficiency, energy diversification, and capacity expansion positions it for continued profitability and long-term contributions to Uganda’s economic development.
