Day load shedding is now a matter of the past, President Museveni said on Wednesday as he commissioned a 50-mega-watt heavy fuel oil thermal power plant at Namanve in Mukono District.

The plant, run by Norwegian power gurus Jacobsen Elektro, was set up at an estimated cost of Shs129billion (54million Euros) and has been supplying power into the national grid since August.

Mr Museveni said power supply deficits, which first hit peak levels in 2005 after a prolonged drought and delays in construction of new hydro-power stations, had "tremendously decreased" because of the government's use of alternative power sources. "There is no more load-shedding during the day," said a visibly buoyant Museveni.

Uganda currently produces about 280MW, while peak power demand stands at about 350MW, growing at a rate of 30per cent per year, according to the Electricity Regulatory Authority. But the estimated power deficit now stands at about 200MW.

Although Mr Museveni admitted that the plant will initially use diesel which is still costly, he said the government was looking forward to producing its own oil which would bring down the costs of generating thermal power. "The good thing is we are about to start producing our own fuel," said Mr Museveni. "These machines will use our own fuel, which will be cheaper."

Mr Dag Moen, the Jacobsen Managing director, said the thermal plant uses about 10 tonnes of heavy fuel oil per hour when running on full capacity. The commissioning is an achievement for the government which is switching from diesel to generate thermal power, to heavy fuel oil expected to lower costs of feedstock.

The plant, Mr Musevenisaid, is replacing the Lugogo plant and will utilise locally produced heavy fuel oil at a refinery to be constructed at Keisotonya (L. Albert).