Masdar Signs JV with TANESCO to Develop Renewable Energy Projects
Masdar has signed an agreement with Tanzania Electric Supply Company Ltd. (TANESCO) related to the development of renewable energy projects with a total capacity of up to 2 GW.
Abdulla Zayed, Head of Business Development & Investment at Masdar and Maharage Chande, Managing Director of TANESCO, signed the agreement on the sidelines of the Tanzania Energy Congress in the presence of Hon. January Makamba, Minister for Energy for Tanzania.
The agreement envisages the establishment of a co-owned joint venture (JV) company by the two organizations to progress the project development.
Chande said: “The agreement we are signing today will bring about a big revolution in the development of renewable energy in the country. Through the first phase, we expect to generate approximately 600 MW and will continue with other projects until we reach 2,000 MW.”
Zayed said: “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 program and to provide a clean pathway for growth for Tanzania.”
The two companies are initially targeting the development of renewable energy projects with a capacity of about 600 MW starting with solar photovoltaic (PV) and onshore wind. The JV will further explore the development of projects with a total capacity of at least 2,000 MW.
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% by 2035.