In East Africa, Uganda’s Mayuge Sugar Industries will soon begin the construction of $63.6 million sugarcane waste power generation plant, estimated to generate 23MW on completion, which is said to be 26% of the country’s currently installed capacity.
The Monitor reported that when the plant starts producing power, one unit of power will be sold to the Uganda Electricity Transmission Company at a price of $0.095.
Low tariffs but not for electricity users
Although the tariff is low, the company general manager Kanu Patel explained that the rate is wholesale and does not apply to electricity endusers.
He said the rate is based on the fact that most of the electricity on the national power grid is from Bujagali hydropower plant, adding that it’s the most expensive of Uganda’s hydropower generation companies.
While addressing a public gathering in Mayuge District last week, Patel highlighted that they would need 10,000 tonnes of sugarcane daily for power generation, the Monitor reported.
He said currently up to 9,394 outgrowers supply the factory with 1.7 million metric tonnes of sugarcane annually, adding that: “At least 20,000 people will be getting work. Suppose one truck is loading cane in the field, the outgrower, a loader, the harvester, the transporter plus the turn boy will get jobs per one truck loading.”
According to the Monitor, Patel said the company shareholders will contribute 35% towards the sugarcane waste power generation plant, while the balance will be secured through debt funding.