Africa-Press – Tanzania. TANZANIA Electric Supply Company (TANESCO) has entered a standardised power purchase agreement with six small-scale independent power producers that will add-up some 19.16 MW into the national grid.
Speaking shortly before signing the agreement, Tanesco’s Strategic Planning Senior Manager Eng. Costa Rubagumya said the firms have been given a grace period of 18 months to commission production.
“This is part of the company’s policy to improve the supply of electricity in the country,” he said, noting that the company is open to investors wishing to venture into supplying power to the state utility firm.
According to Eng Rubagumya, Tanesco is working under the guidance of the Energy and Water Regulatory Authority (EWURA) and it is currently screening other investors who plan to supply electricity to the company.
EWURA’s guidelines, however, allows small scale, independent power generators, to invest in the production of renewable energy which includes hydro, solar, wind or biomass for specific areas.
Rubagumya told reporters that the new power investors and their capacities include Nishati Lutheran Investment that implements the 0.36 MW Ijangala Hydropower Project at Ijangala waterfalls in Makete and Madope Hydro Co. Ltd that implements the 1.7MW Madope hydropower project on Madope River in Ludewa.
Others are Luponde Hydro Ltd of the Luponde Hydropower Project (0.9MW) on Luhololo river in Njombe and the Lung’ali Natural Resources Co. Ltd which implements the 1.2MW Maguta Hydropower project on Lukosi river falls in Kilolo.
It also includes NextGen Solawazi Ltd which is working on the 5.0MW Kigoma hydropower project at Kigoma special economic zone and SSI Energy Tanzania Ltd that is implementing a 10MW Kahama Solar power project in Kahama.
“All these projects have met conditions set by EWURA,” he said.
The government agreed that some independent power producers be allowed to generate and sell power specifically on projects that seek to increase power voltage, areas without the national grid as well as in areas where there is high energy losses.
Eng Rubagumya said the new agreement being signed have also adopted a phase-in which Tanesco will periodically review the pricing especially when production cost has lowered to ensure the energy sold is relatively cheap and affordable.
“The cost of electricity must seek to reduce the cost of living to consumers,” he emphasized.
SSI Energy Tanzania Ltd Director General Nicholas Richardson noted that the new agreement will help people in Kahama access the energy but also reduce power interruptions that slow business development.
“This is a good thing for the people in Kahama,” he said thanking Tanesco and the government for endorsing the investors.
