Providing first-time energy access to 6,000 people in one of Tanzania’s most underserved regions will be just one of the Kilosa project’s major benefits.
Currently around three in four households in the central-eastern Morogoro Region, which includes the Kilosa District, is not connected to electricity in any form. Now, project developers Ruaha Energy and Cronimet are planning to build six 1MW solar PV grid-connected power plants spread out across the 15,000km2 district.
Once built, the small utility-scale facilities will deliver much-needed additional power to the local grid, which frequently suffers from outages and power fluctuations, and provide improved energy access to more than 70,000 people.
The construction phase of the project will create employment opportunities for villagers and improve the local infrastructure, including upgraded roads and a better electricity supply to the local hospitals and school.
During operation, between 1.5-5% of project revenues will contribute directly towards a community fund, managed by the villagers. At the same time villagers involved in the construction and operation of the power plant will be upskilled in areas such as solar PV sales and invoicing, construction and maintenance, increasing their future job prospects.
The Kilosa project is part of Ruaha Energy’s vision of providing power to one million customers, one village at a time, and was signed under a new small PPA in Tanzania, paving the way for private sector investment.
When complete, the power plants will be a major contribution towards the company’s ambition to build a portfolio of standalone solar PV and hybrid biomass/solar PV projects, with a combined generation capacity of 40MW.
Contracted date: 2 November 2017
Lending type: Development capital
REPP funding: USD $455,000
We have been working with the CAMCO/REPP team to develop a portfolio of grid-connected solar photovoltaic projects. The support and suggestions we have received from them have been invaluable as we develop and roll out our strategy.- John Tate, Chairman and CEO, Ruaha Energy