TotalEnergies to Acquire 28.3% Stake in Bujagali Hydropower Plant

TotalEnergies has announced plans to acquire a 28.3% stake in the Bujagali hydropower plant in Uganda.

The agreement, signed with Scatec, a Norwegian renewable energy company, involves the acquisition of 100% of Scatec's subsidiary SN Power, which holds interests in renewable hydropower projects across Africa. This joint venture includes Norfund and British International Investment (BII), with SN Power holding a 51% share.

The Bujagali hydropower plant, with a capacity of 250 MW, supplies more than 25% of Uganda's peak electricity demand. Additionally, TotalEnergies will acquire minority stakes in two other projects under development: one in Rwanda (260 MW) and another in Malawi (360 MW), as per a statement released on the company's website on Tuesday, July 30.

"This acquisition of renewable hydroelectric assets and projects in Africa reflects our commitment to contributing to the continent's energy transition and providing electricity to the people of African countries. We are particularly pleased to become a player in hydropower in Uganda, where we are also developing a major oil project. This is a further demonstration of TotalEnergies' ability to implement its multi-energy strategy in oil-producing countries, supporting them in their energy transition," said Patrick Pouyanné, Chairman and CEO of TotalEnergies.

Terje Pilskog, CEO of Scatec, added, "We are pleased to announce today's transaction, as we believe TotalEnergies will be a strong asset owner going forward, with the ability to further develop the projects and contribute to the energy transition in Africa. We extend our gratitude to the hydropower team for their hard work and dedication over the years, and to our joint venture partners, host governments, and lenders for their support since 2020."

TotalEnergies currently holds interests in several hydropower projects globally, with a gross capacity of 3.7 GW. This includes 218 MW installed in Europe (France - 19 MW, Portugal - 33 MW, Turkey - 166 MW), 1.5 GW under development in Mozambique (Mphanda Nkuwa project), and 2 GW under development by Adani Green in India.