Building Energy, multinational company operating as a Globally Integrated IPP in the Renewable Energy Industry, announces the Inauguration of the Tororo Solar Plant, its first photovoltaic system in Uganda.
With a capacity of 10 MWp, this plant is among the largest in Eastern Africa. Building Energy was also responsible for the development of the project, arranging the financing, as well as the construction and commissioning of the plant.
The beginning of operations has been celebrated on the occasion of the ribbon cutting ceremony in Tororo, in the presence of Matteo Brambilla, MD Africa and Middle East at Building Energy, and Attilio Pacifici, EU Ambassador and Head of the EU Delegation to Uganda.
The Tororo solar plant will generate around 16 GWh of energy annually, catering to the energy needs of more than 35,838 people.
In addition, the plant will foster clean industrial development in the town of Tororo and at the same time save atmospheric emissions of more than 7,200 tonnes of carbon dioxide per year. Community Development initiatives are also underway.
The Solar Park was developed under the Global Energy Transfer Feed in Tariff (“GET FiT”), 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 EU-Africa Infrastructure Trust Fund, the governments of Norway, Germany, and the United Kingdom.
The EU-Africa Infrastructure Trust Fund has provided funds through the GET FiT Solar Facility in the form of a top-up payment per kWh of delivered electricity over 20 years. This financing fills the gap between the generation costs and the feed-in tariff set by Uganda Electricity Transmission Company Limited (UETCL) through a Power Purchase Agreement (PPA).
The overall $19.6 million construction investment at Tororo was financed by FMO, the Dutch development bank which, as Mandated Lead Arranger, coordinated the provision of a $14.7 million term loan facility.
Fifty percent of the funding was syndicated to the Emerging Africa Infrastructure Fund (EAIF), while the overall equity contribution of the shareholders was $4.9 million.