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Sesam Energetics 1, a Kampala-based private company in conjunction with Taylor Biomass Energy USA, wants to generate 33 megawatts (MW) from urban biodegradable waste, under the Taylor Biomass Energy project. But, reports AllAfrica.com (citing the Kampala New Vision), their effort to secure the standardised power purchase agreement (PPA) on pricing with the President, has come to a standstill.
According to the Government‘‘s Renewable Energy Policy, 2006 looks at biomass-fired cogeneration, wind, peat, geothermal and solar as small hydropower plants that generate less than 20MW that do not warrant PPA.
Dr. Noah Maalanti, Sesam‘‘s chief executive officer says they are to generate a minimum of 33MW above the small-scale power projects. "This is why we are looking at the presidential mediation to waive the project from complete subjection to the current Renewable Energy Policy. The policy has rigidly stipulated feed-in-tariffs, regardless of the technology implemented and socio-economic benefits generated by the project," he explains.
Godfrey Ndawula, the assistant commissioner for new and renewable source of energy in the Ministry of Energy and Mineral Development, says the policy states that the significance of this type of PPA is that it makes the business predictable by removing market uncertainty, fastens negotiations with the developer and dramatically cuts down the transaction costs.
He adds that the ministry powers stop on the gazetted 20MW. "Above that amount is left to the Parliament and the President to decide."
Sesam falls within standardised feed-in-tariff, that is a rate at which the transmission company buys electricity from the power-generating company. The feed-in-tariff is part of the standardised PPA. The tariff should be able to translate into cash revenue that will not require the investor to resort to a capital subsidy according to the policy.
Sam Julius Lukwago, Sesam‘‘s executive director, says they would like to negotiate a special rate that would make them collect garbage at no cost. "We want our power purchased at between $90-$120 per megawatt if our operations are to be sustainable, but this is still subject to negotiation," he said.
Lukwago said because they are going to generate more than 20MW, they chose to see the President since "taking it to Parliament is a long process."
He says there are invaluable benefits for Uganda. "With presidential support to help conclude the long-term PPA with Uganda Electricity Transmission Company Limited (UETCL) and Waste Management Contract (WMC) with Kampala City Council (KCC), could fish Uganda out of many problems."
"We are also looking at other waivers and support that may arise in the process of project execution. If all had been cleared last year, the 33MW would be enjoyed during the Commonwealth Heads of Governments Meeting in November. The energy crisis would be nearing its end," says Lukwago.
Kiteezi landfill is nearing the end of its lifespan. It has less than one-and-a-half years to reach its full capacity according to the KCC Solid Waste Management Strategy, October 2006 Report.
Projections made for the next 10 years indicate that Kampala population figures would be over four million. The population is increasing at 3.7% per annum.
At that time, 60,000 metric tonnes of waste will be generated monthly from the current 42,000 metric tones, meaning a daily generation of over 1,400.
The report further shows that the rate of daily waste collections is at 35%. This implies that 65% is not currently collected. The refuse composition stands at 10.7% paper and board, glass 1.8%, metal 0.4%, plastic 11.8%, organics 74%, textiles 0.9%, construction and special care waste at 0.4%.
The waste stream for metal has decreased as a result of establishment<
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