TotalEnergies Uganda eyes more solar power generation

From the newsletter
A major player in Uganda's energy sector, TotalEnergies has submitted applications to Uganda's Electricity Regulatory Authority to develop 40 MW of solar power capacity. In 2022, it signed an agreement with the government to build a 120 MW solar power plant. It aims to achieve 1 GW of renewable energy capacity in Uganda by 2030.

• TotalEnergies has been diversifying its energy portfolio to include renewable energy. It plans to achieve 400 GW of gross renewable capacity across the world. It started by first installing solar panels at its fuel stations and is now venturing into large-scale energy projects.  

• The focus of these projects is hydropower and solar, and the company has interests in several hydropower projects with a gross capacity of 3.7 GW worldwide.

More details

• In Uganda, the company is involved not only in the downstream oil and gas sector but also the upstream, with explorations in Uganda's Tilenga oil fields with a capacity of over 6 billion barrels. But at the same time, they are invested in renewables, both solar and hydropower.

• In 2024, it acquired a 28.3% stake in the 250 MW Bujagali hydropower plant, which supplies more than 25% of Uganda's peak electricity demand. This acquisition came through a joint venture with Scatec, a Norwegian renewable energy company, where TotalEnergies holds a majority stake in Scatec's subsidiary, SN Power. TotalEnergies will also acquire minority stakes in two projects under development in Rwanda (206 MW) and Malawi (360 MW).

• In Mozambique, TotalEnergies is part of a consortium with EDF and Sumitomo Corporation to develop the massive 1,500 MW Mphanda Nkuwa hydropower project located on the Zambezi River.

• Uganda's grid is reliant on hydropower, which accounts for over 80% of the 2,000 MW installed capacity. Installed solar capacity is only 88.3 MW and accounts for less than 4% of electricity generated. Uganda plans to install 7,500 MW of solar by 2030 and 45,000 MW by 2050, as outlined in its Energy Transition Plan.

• TotalEnergies Uganda will surely have a big role to play in actualising this plan. They bring with them experience in the general energy space and a huge capital base that will be required in bankrolling renewable energy projects.

• There will be competition, but TotalEnergies, being an international giant, can easily replicate its oil and gas supply chain in renewables. This gives them an upper hand if they are to roll out renewable energy projects in multiple locations at the same time.

• Being a fuel company with over 200 service stations, they can establish charging stations for electric vehicles and utilise their available space. This way they get to gain a share of the growing Ugandan EV market.

Our take

• There is a big gap between Uganda's installed solar capacity and its 2030 targets. With just five years to go until 2030, Uganda has only installed 1.2% of its solar energy target. That's a significant gap to fill in a relatively short amount of time. For the realisation of this goal, it needs energy companies with enough capital that can easily build big renewable energy projects.

• TotalEnergies can leverage its existing infrastructure, supply chains, and financial resources to gain a competitive advantage in the renewable energy market. Their network of over 200 service stations, for example, presents a prime opportunity to establish a widespread EV charging network. They can therefore build energy plants not only for the grid but also to support off-grid EV charging.