UAE’s sustainable development giant Masdar has signed a Joint Development Agreement (JDA) with Tanzania Electric Supply Company (TANESCO), which will lead to the creation of renewable energy projects with a total capacity of up to 2 gigawatts (GW).
The two companies will form a co-owned joint venture (JV) company after an agreement to this effect was signed by Abdulla Zayed, Head of Business Development & Investment at Masdar, and Maharage Chande, Managing Director of TANESCO. January Makamba, Tanzania’s Minister for Energy, was present at the signing ceremony.
The first phase of the JV targets the development of renewable energy projects with a capacity of about 600MW starting with solar photovoltaic (PV) and onshore wind.
Speaking at the function, Chande said: “The agreement will bring about a big revolution in the development of renewable energy in the country. Through the first phase of the collaboration, we expect to generate approximately 600 megawatts, and we will continue with other projects until we reach 2,000 megawatts.”
Zayed added: “Masdar and TANESCO are working together to support Tanzania’s sustainable development and to provide a secure, clean source of energy for the people of Tanzania.
“The signing of this agreement demonstrates Masdar’s commitment to the Tanzanian market and to the nation’s energy transition, supporting the target to reach 5,000 MW capacity by 2025. We look forward to working with TANESCO to develop this ambitious programme and to provide a clean pathway for growth for Tanzania.”
TANESCO, the sole provider of electricity in Tanzania, is looking to add more renewable energy sources to the national grid to meet the country’s growing demand for power and increase energy access. The Tanzanian government is targeting an electrification rate for the entire country of 75 percent by 2035.
Less than 40 percent of Tanzania’s population has access to electricity and a World Bank report in 2016 stressed the importance of more houses getting connected. The report said electricity could become a big factor in poverty alleviation in the country.
“Access to affordable, reliable and efficient electricity supply is vital for the increased productivity needed to generate jobs, enhance the living conditions of Tanzanian households and support the attainment of the country’s socioeconomic goals,” the report said.
Follow us on
