UMEME Invests 16 Billion to Enhance Power Supply for Growing Industries in Njeru

Summary:

• UMEME invests 16 billion in a new switching station in Njeru Municipality to address power supply challenges for the growing industrial sector along Kayunga road, aiming to fulfill obligations despite the concession expiring in March 2025.

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UMEME, the power distributor, has invested 16 billion in erecting a switching station along Kayunga road in Njeru Municipality, addressing the persistent power supply challenges faced by the burgeoning industrial sector in the region. Managing Director Selestino Babungi explained that the construction of a 60-megawatt substation aims to alleviate the issues of intermittent power supply resulting from the increasing number of industries in Njeru Municipality.

Despite UMEME’s 20-year concession expiring in March 2025, Babungi emphasized their commitment to fulfilling the obligation of supplying power to Ugandans. He acknowledged the concerns raised by industrialists, particularly steel manufacturers like Yogi and Pramukh, and highlighted the necessity of preparing the distribution system for potential growth.

Babungi outlined UMEME’s substantial investments of 120 billion in various projects across the country this year, including the 16.5-billion Njeru Substation, also known as the Western Bank. Simbiso Chimbima, Chief Technical Officer at UMEME, explained the integration with Owen Falls and the installation of new equipment at the Nalubaale power plant to enhance efficiency and reduce maintenance costs.

Chimbima emphasized that the Njeru substation, named the Western Bank, would directly tap power from the Owen Falls (Nalubaale) Dam, providing improved power sales, particularly for industrial customers along Kayunga road. Job Watti, Project Investment Manager at UMEME, revealed plans for four outgoing lines from the Njeru switching station to cater to the energy demands of industrialists along Kayunga road, estimating a current demand of approximately 44 megawatts and expressing optimism that the 60-megawatt capacity would meet present needs with room for future growth.

Njeru, currently hosting over 20 factories, stands out as one of the fastest-growing industrial towns, and UMEME is strategically positioning itself to support and facilitate the region’s continued growth and development.