TotalEnergies Acquires Major Stake in Bujagali Power Dam

TotalEnergies has signed an agreement to acquire a major stake in Bujagali Energy Ltd, buying out Norwegian-owned SN Power Invest.

SN Power is a subsidiary of Scatec, a Norwegian renewable energy company.

SN holds a 51 percent interest in renewable hydropower projects in Africa, through a joint venture with Norfund and British International Investment (BII).

As a result of this transaction, which is subject to certain previous conditions, TotalEnergies will acquire a 28.3 percent stake in the Bujagali hydropower plant currently in operation in Uganda.

With a capacity of 250 MW, Bujagali accounts for more than a quarter of the country's peak electricity demand.

Other shareholders of Bujagali Energy Limited Bujagali Holdings Power Company Ltd (BHPCL) an affiliate of Aga Khan Fund for Economic Development (AKFED); and the Government of Uganda (GoU).

TotalEnergies will also acquire minority stakes in two projects under development in Rwanda (260 MW) and Malawi (360 MW).

“This acquisition of renewable hydroelectric assets and projects in Africa reflects our desire to contribute to the continent's energy transition by bringing electricity to the people of African countries," said Patrick Pouyanné, the Chairman and Chief Executive Officer, of Total Energies.

With this acquisition, the French oil major cements its position as the leading player in the energy sector in Uganda, in both oil and gas, electricity, and renewable energy.

"In particular, we are delighted to be able to become a player in hydropower in Uganda, a country where we are also developing a major oil project," Pouyanné said, adding that this was another example of TotalEnergies’ ability to implement its multi-energy strategy in oil-producing countries to support them in their energy transition.

Totalenergies has faced stiff resistance for its fossil fuel projects in western Uganda and the crude export pipeline through Tanzania with opponents claiming the developments are a danger to the environment and violate human rights.

“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," said Scatec CEO Terje Pilskog.

To date, TotalEnergies has interests in several hydropower projects with a gross capacity of 3.7 GW worldwide.

These include 218 MW installed in France, Portugal, and Turkey; 1.5 GW under development in Mozambique, and 2 GW under development by Adani Green in India.

As part of its ambition to get to net zero by 2050, TotalEnergies is building what they hope to be a world-class cost-competitive portfolio combining renewables (solar, onshore, and offshore wind) and flexible assets like storage, to deliver clean firm power to its customers.

As of the end of 2023, TotalEnergies’ gross renewable electricity generation installed capacity was 22 GW and is expected to expand this business to reach 35 GW in 2025.