Studies
Hydro electricity. N/A N/A
Small Hydro Power Feasibility study of Gura, Kenya and Nchwera in Uganda
| Country : | Uganda . Kenya |
| Client : | EATTA - East African Tea Trade Association . |
| Start Date : | 2007 |
| Completion Date : | N/A |
| Value of services : | 227 394 $ |
| Funder : | UNEP (United Nations Environnement Program) - AfDB (African Development Bank) |
| Associate/Partner : | N/A |
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| Description : |
In the framework of the UNEP/AfDB project “Greening the Tea Industry in East Africa” executed by the East African Tea Trade Association (EATTA), IED has been contracted to conduct detailed feasibility studies for 2 Small Hydropower Projects (SHP) previously selected to supply remote Tea Factories in Kenya and Uganda. The study is part of a 4-year initiative endorsed by 8 EATTA member countries in the region. The objective of this initiative is to encourage the tea sector in East African region to develop Small Hydropower Projects with the aim of reducing operating costs, increasing power supply reliability and reducing greenhouse gas emissions during tea processing. The total project costs have been estimated at 7.1 MUS$ and 8.8 MUS$ respectively for Uganda and Kenya (95% is for the investment). The required equity from the BOO promoters (private company with or without tea factories) is 35% of the investment. After financial simulation and analysis, the calculated return on equity (RoE) was close to 15% when tea factories contribute to the investment. The pay-back period in the baseline scenario is about 18 and 12 years respectively for Uganda and Kenya. Despite rather high investment costs (3400 USD/kW in Uganda and 3000 USD/kW in Kenya), both projects are considered attractive. |
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| Description of the Actual Services Provided | The 4 months study included hydrological, topographical and socio-economical field surveys conducted on Gura river in Kenya and Nchwera river in Uganda. Energy demand assessment and load forecast have been achieved for the tea factories and surrounding settlements (rural electrification component). The institutional framework has been analysed to identify the best options to promote, implement and operate SHP projects and to inject the excess power into the national grid. Lastly an environmental & social impact assessment study (ESIA) has been conducted in both countries. In Uganda, a SHP plant of 1.97 MW (1.25m3 – 214m) was proposed after optimisation to supply Igara tea factory in Bushenyi district with a dedicated MV distribution line (33kV - 34km), as well as 3 major trading centres located along the line (3500 population). The power balance shall be injected into the National grid and sold to the utility through PPA agreement. The main characteristics of the works include a 4.1 km canal, a 664m penstock and one Pelton turbine & 2kVA synchronous generator in the powerhouse. In Kenya, the optimisation has led to a SHP plant of 2.8 MW (2.5m3 – 149m) which will supply 4 tea factories located between 6 and 24 km from the powerhouse through 3 dedicated MV feeders (11kV - 35km). Given the high rural electrification rate in the project area, no non-electrified settlement was found financially attractive for grid connection. The power balance shall be injected into the National grid and sold to the utility through PPA agreement. The main characteristics of the works include a 6.6 km canal, a 392m penstock and 2 Pelton turbines coupled with 1.5kVA synchronous generators. |