(MENAFN- Emirates News Agency (WAM))
DAR ES SALAAM/ TANZANIA, 5th August, 2022 (WAM) -- Masdar announced that it 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 gigawatts (GW).
In the presence of Hon. January Makamba, Minister for Energy for Tanzania, the Joint Development Agreement (JDA) was signed by Abdulla Zayed, Head of Business Development & Investment at Masdar, and Maharage Chande, Managing Director of TANESCO, on the sidelines of the Tanzania Energy Congress. The JDA envisages the establishment of a co-owned joint venture (JV) company by the two organisations to progress the project development.
Commenting on the agreement, Maharage 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 of the collaboration, we expect to generate approximately 600 megawatts, and we will continue with other projects until we reach 2,000 megawatts.'
For his part, Abdulla 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 programme and to provide a clean pathway for growth for Tanzania.'
Through the JV, the two companies are initially targeting the development of renewable energy projects with a capacity of about 600 megawatts (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 megawatts.
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.
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