East African country, Uganda, has initiated the construction of nine mini hydropower plants across seven districts, in a bold move to enhance rural electrification in the Eastern African nation.
The ORIO Mini Hydropower Project, with a combined capacity of 6.7 megawatts (MW), aims to provide affordable and reliable electricity to underserved communities in seven districts including Kasese, Bushenyi, Mitooma, Hoima, Kabarole, Bunyangabu, and Bundibugyo
The initiative, spearheaded by the Uganda Energy Credit Capitalisation Company (UECCC), in collaboration with international partners, will also include the development of a 288-kilometre local distribution network to ensure efficient power delivery to the targeted areas.
At the groundbreaking ceremony held on February 1, 2025, in Mitooma district, UECCC’s Managing Director, Roy Nyamutale Baguma, stressed the project’s alignment with Uganda’s broader development goals.
Baguma stated,
“This project is a key part of Uganda’s Sustainable Energy Development Programme, aimed at increasing generation capacity and expanding rural electrification.”
The ORIO Mini Hydropower Project, estimated to cost $13 million, is co-funded by the Government of Uganda (via UECCC) and the ORIO Infrastructure Fund (now “Invest International”) of the Netherlands.
The Deputy Speaker of the Parliament of Uganda Thomas Tayebwa, gave the development a thumbs up, saying;
“The partnership between our government and the Netherlands has proven to be a beacon of development, and today is evidence of what can be achieved when we work together for the common good.”
On its part, the Dutch government has contributed a grant of €13.1 million towards the project, which will be executed in phases, the first of which will cover four sites including Hoimo, Igassa, Nsongya, and Nchwera.
Chinese HNAC Technology Company Limited from China will handle civil and hydro-mechanical works, while Germany’s Ossberger GmbH is responsible for the design, manufacture, supply, and installation of electromechanical components.
The electrification project, when completed, is expected to benefit approximately 71,081 households and 2,300 small and medium-sized enterprises (SMEs) in the targeted districts.
The increased access to electricity is anticipated to spur economic activities, improve living standards, and contribute to environmental conservation by reducing reliance on non-renewable energy sources.
Energy Minister Ruth Nankabirwa, who recently announced Uganda’s third round of petroleum exploration rounds, said the transformative project has the potential of “Connecting millions of households with affordable electricity” and contributing to the country’s sustainable energy development.
This ORIO initiative is part of Uganda’s broader strategy to diversify its energy mix and meet the growing power demand, estimated to increase by 10% annually. Aside from this project, the Yeoweri Museveni-led government is also exploring additional hydropower projects and other renewable energy sources to ensure a stable and sustainable energy supply for Uganda’s rural communities.
Last year, the government announced a partnership with Gridworks, a subsidiary of British International Investment, to develop a 132kV transmission line in the eastern part of the country to enhance its renewable energy capacity and address growing power demands, in a country only 47% of the population has access to electricity.
Also, Uganda was among the few privileged African countries whose oil sector attracted remarkable investments from international foreign investors in 2024. Others were Nigeria, Angola, Congo, and Côte d’Ivoire.
