energy 17 April 2026 Daily Monitor (Uganda)

High Costs and Risks Stall Uganda's Geothermal Energy Push

Uganda trails neighbors like Kenya in geothermal power due to the high costs and risks of deep drilling, with each well costing up to $7 million. Government aims to de-risk top sites like Kibiro and Panyimur for drilling next year, targeting 150 MW by 2030. Source: https://www.monitor.co.ug/uganda/news/national/why-uganda-lags-behind-in-geothermal-production-5427780

Uganda holds vast geothermal potential of around 1,500 MW for electricity and 6,000 MW for direct heat uses, yet it remains largely untapped. Unlike Kenya’s 1,000 MW output, Uganda’s 30 hot springs await development amid steep financial hurdles.

Vincent Kato, Commissioner for Geothermal Resources at the Ministry of Energy and Mineral Development, notes that drilling a single well to 3 kilometers depth runs $5-7 million. Achieving initial production requires eight wells, totaling $40-56 million. Private investors shy away from the risks, including dry wells seen in regional efforts, leaving government to lead exploration.

“Funders wait for us to de-risk before stepping in,” Kato stated. To counter this, officials prioritize sites: Kibiro in Hoima, Panyimur in Nebbi, Bulanga in Bundibugyo, and Katwe in Kasese. Drilling four exploration wells each at Kibiro and Panyimur is slated for 2026/2027.

Grace Tusiime, Undersecretary in the ministry, shared encouraging pre-feasibility results from these areas during a Kampala technical session hosted by Agence Française de Développement. Targets include 150 MW by 2030 and 1,500 MW long-term, supporting energy transition with applications in agro-processing and tourism.

A 50 MW plant demands $200 million total, per Kato’s estimates. Geothermal offers reliable baseload power, immune to droughts plaguing hydro. Kenya’s KenGen expert Dr. Daniel Mwaura highlighted their journey from 1950s setbacks to over 1,000 MW, offering partnership aid to Uganda.

Source: Daily Monitor (Uganda)