Strategic expansion into hydropower

TotalEnergies is expanding its presence in East Africa through the acquisition of hydroelectric projects, underscoring its commitment to the energy transition.

French oil giant, Total EnergyRecently, it took a big step towards diversifying its energy portfolio by acquiring a series of hydroelectric projects in East Africa. This decision is part of a strategy aimed at strengthening the company’s presence in the region and contributing to the energy transition on the African continent.

Acquisition Details

TotalEnergies has signed an agreement with the Norwegian company Scatec to acquire 100% of the shares of its subsidiary SN Power, which holds interests in several hydropower projects in Africa. These projects include minority stakes in two developments in Rwanda (260 MW) and Malawi (360 MW). The most important acquisition concerns the Bujagali hydropower plant in Uganda, where TotalEnergies has acquired a 28.3% stake. With a capacity of 250 MW, the power plant is vital to the country and can meet more than 25% of Uganda’s peak electricity needs.

TotalEnergies has maintained its commitment to the energy transition despite criticism of its oil activities. Patrick Pouyanné, CEO of TotalEnergies, expressed satisfaction with engaging in hydropower business in Uganda and stressed that this move is part of the company’s desire to contribute to Africa’s energy transition. The acquisition complements TotalEnergies’ existing projects, such as the Mphanda Nkuwa hydroelectric power plant in Mozambique, which is expected to generate 1.5 GW of electricity by 2031.

Controversial background of oil projects

TotalEnergies’ commitment in East Africa is not limited to hydropower, however. The group is also working on a major oil project in Uganda that involves drilling 419 wells, a third of which are located in the Murchison Falls National Park, a major biodiversity reserve. This project has sparked strong protests from environmental and human rights associations. Plans to build a nearly 1,500-kilometer pipeline to transport oil from the Lake Albert fields to the Tanzanian port of Tanga have exacerbated environmental concerns.

this Major oil producing countriesCompanies including TotalEnergies are under pressure to diversify their energy portfolios and invest more in renewable energy. However, green investments sometimes remain marginal compared to traditional activities. Shell, for example, recently abandoned several renewable energy projects deemed unprofitable. The trend highlights the challenges facing supermajors in meeting their net-zero carbon targets by 2050.