- Masdar is to explore the development of 2 GW renewable energy capacity in Africa’s Tanzania
- Under a JV with TANESCO, it will initially start with 600 MW of solar PV and onshore wind energy projects
- The JV will be tasked to continue exploring more projects till the 2 GW aim is reached, stated Masdar
Abu Dhabi Future Energy Company Masdar has entered a joint development agreement (JDA) with state owned Tanzania Electric Supply Company Ltd (TANESCO) to develop 2 GW of renewable energy projects in the African country, comprising solar PV and onshore wind.
Under the agreement, the 2 partners will establish a joint venture (JV) company to undertake project development of the planned capacity. To start with, the JV will aim for the development of about 600 MW solar PV and onshore wind energy projects.
They will continue the cooperation to realize remaining capacity to reach the targeted 2 GW.
Growing demand for electricity in Tanzania is opening up the path for renewable energy to expand in the country with the help of which it seeks to increase energy access here. TANESCO is the nation’s sole electricity utility that aims to help the government reach its overarching aim of electrification rate for the entire country to grow to 75% by 2035.
TANESCO’s Executive Director Maharage Chande said the Masdar agreement will bring about a ‘big revolution’ in the development of renewable energy in the country.
For Masdar, this deal helps it strengthen its global identity as a leading supplier of renewable energy solutions for growing markets as the company seeks to reach its 5 GW target capacity by 2025.
Masdar recently also achieved financial closure for its 230 MW Garadagh Solar PV Plant in Azerbaijan with financial support coming in from the Asian Development Bank, the European Bank for Reconstruction and Development, Japan International Cooperation Agency and the Abu Dhabi Fund for Development. Here the company wants to develop 10 GW solar and wind energy projects (see Masdar To Explore 10 GW Clean Energy In Azerbaijan).
Tanzania had around 1.6 GW of electricity generation capacity in 2021, according to Tanzania Invest. Most of its power is generated from fossil gas (48%), followed by hydro (31%), petrol (18%), solar (1%) and biofuels (1%). Power demand is anticipated to be growing 10-15% per year, while 24% of the population do not have access to electricity, according to the agency.