Building Energy has connected its Tororo Solar Plant to Uganda’s grid, and expects the project to generate 16 GWh of electricity annually.
The plant was officially opened in a ribbon cutting ceremony attended by Attilio Pacifici, Head of the EU Delegation to Uganda. Electricity generated at the project will be sold to Uganda Electricity Transmission Company Limited (UETCL) via a PPA, and a top up payment per kWh will be provided by the EU-Africa Trust Fund’s GET FiT (Global Energy Transfer Feed in Tariff) Solar Facility, in order to cover a shortfall between generation cost and the PPA rate set by UETCL.
The plant was developed under the GET FiT program, which is managed by German development bank KfW, in partnership with Uganda’s electricity regulatory agency (ERA). Funding was provided EU- Africa Trust Fund, as well as the governments of Norway, Germany and the United Kingdom.
Investment for the construction of the project came from Dutch development bank FMO, which coordinated a $14.7 million loan facility. 50% of the funding was syndicated to the Emerging Africa Infrastructure Fund, while shareholders contributed a total of $4.9 million.
Italy based IPP Building Energy has a strong presence in several solar markets, and has completed more than 30 projects in South Africa. With this, the company looks to be aiming at spreading itself further across the African Continent.