Six Independent Power Producers (IPPs) have just concluded power purchase agreements with the Tanzania Electric Supply Company (TANESCO). These private companies are developing renewable energy projects in Tanzania with a total capacity of 19.16 MW.
The state-owned Tanzania Electric Supply Company (TANESCO) is signing power purchase agreements (PPAs) with six independent power producers (IPPs) that are developing several renewable energy projects in Tanzania. TANESCO agrees to purchase 19.16 MW of electricity, under the supervision of the Energy and Water Regulatory Authority (EWURA) of Tanzania.
Among the selected IPPs is Nishati Lutheran Investment, which is implementing a 36-kW hydropower project at the Ijangala Falls in Makete. Similarly, Madope Hydro is implementing the 1.7 MW Madope Hydroelectric Project on the Madope River. Luponde Hydro is also signing a PPA with Tanesco for its Luponde hydroelectric project (9 kW) on the Luhololo River in Njombe. Lung’ali Natural Resources, which is implementing the Maguta hydroelectric project (1.2 MW) on the Lukosi River Falls in Kilolo, will sell its production to the utility.
Commercial operation in 18 months
The other IPP selected is NextGen Solawazi which is working on a 5 MW hydropower project in the Kigoma Special Economic Zone. SSI Energy Tanzania, which is currently building a 10 MWp solar power plant in Kahama, will also sell its production to Tanesco. According to the public company, the six private companies will have to start marketing their production within 18 months.
In the meantime, TANESCO is developing other electricity projects in Tanzania. In this way, TANESCO is supporting the Tanzanian government’s policy of achieving a 75% electrification rate by 2035. Among its projects is the construction of the Rumakali and Ruhudji hydroelectric power plants which will have capacities of 222 MW and 358 MW respectively. In July 2020, TANESCO selected Multiconsult Norge AS, a Norwegian engineering consulting firm, to provide consulting services for the two projects.