Power Purchase Agreement signed to progress the Lilondi run-of-river hydropower project in Tanzania
Barcelona, Spain: Anzana Electric Group (formerly Virunga Power) and InfraCo Africa, part of the Private Infrastructure Development Group (PIDG), have today announced the signing of a Power Purchase Agreement (PPA) with TANESCO, the state-owned national utility of Tanzania, which took place earlier this month in Dodoma. The PPA signing is a significant milestone for the 4.6MW Lilondi Hydropower project which is expected to be the first of a portfolio of six run-of-river hydro plants to be developed by the partners in Tanzania. The announcement was made during the annual Africa Energy Forum (AEF) being held this week at Fira de Montjuïc, Barcelona, an event attended by over 2,000 delegates active across the African energy sector.
Speaking at the AEF, TANESCO’s Managing Director, Gissima Nyamo-Hanga, said “Based on the importance of energy in the economic and social development of our country and any nation, TANESCO strives to ensure that our country has reliable electricity from various sources to meet current and future needs. The signing of this PPA is a step to fulfil this ambition.”
Located in the country’s Ruvuma Region, close to Tanzania’s border with Malawi, the Lilondi run-of-river hydro plant will supply clean, baseload power into both TANESCO’s local grid network and a high-voltage substation in Madaba District. The project seeks to contribute towards the achievement of SDG 7: Affordable, Reliable and Modern Energy for All, specifically around increasing renewables in the global energy mix.
Speaking at the AEF, InfraCo Africa’s Head of Business Development, Omar Jabri, said “InfraCo Africa and Anzana Electric Group have been committed to developing the Lilondi Hydropower project for several years. I would like to take this opportunity to recognise the dedication of colleagues across both companies as well as the commitment of the Government of Tanzania to diversifying the country’s renewable energy mix to include more small-scale hydropower.” Mr Jabri concluded, “The PPA signing for Lilondi marks a significant milestone for the development of Tanzania’s hydropower potential.”
Brian Kelly, the founder and CEO of Anzana Electric Group, said “Anzana is excited to have reached this important milestone with TANESCO after a lengthy development process and presence in the Tanzania dating more than a decade. Delivering on the promise of development is critical to our mission and reaching this milestone shows our team’s dedication to building and maintaining successful partnerships with local communities, governments, and financiers.” He continued, ”Anzana is grateful for the critical early support of InfraCo Africa and PIDG and recent investment from its new shareholder, Gridworks Development Partners.”
It is anticipated that Lilondi will demonstrate the viability of the country’s small hydro resource, attracting further private sector finance to the sector and enabling its replication across rural Tanzania and the wider region. A grant from PIDG Technical Assistance is being used to undertake pre-feasibility studies for the wider portfolio which is expected to add up to 50MW of clean hydropower to Tanzania’s rural electricity generation capacity.
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Notes to editors
Tanzania’s rural electrification rate is 23.3%
Estimates suggest that 3% of Tanzania’s 3-500MW small hydro potential has been developed to date
The Private Infrastructure Development Group (PIDG) is an innovative infrastructure project developer and investor which mobilises private investment in sustainable and inclusive infrastructure in sub-Saharan Africa and south and south-east Asia. PIDG investments promote socio-economic development within a just transition to net zero emissions, combat poverty and contribute to the Sustainable Development Goals (SDGs). PIDG delivers its ambition in line with its values of opportunity, accountability, safety, integrity, and impact. Since 2002, PIDG has supported 233 infrastructure projects to financial close which provided an estimated 227 million people with access to new or improved infrastructure. PIDG is funded by the governments of the United Kingdom, the Netherlands, Switzerland, Australia, Sweden, Germany and the IFC www.pidg.org
InfraCo Africa: InfraCo Africa is part of the Private Infrastructure Development Group (PIDG) and seeks to alleviate poverty by mobilising investment into sub-Saharan infrastructure projects. It does this by investing directly into early-stage projects and by providing development leadership. Through its investments arm, InfraCo Africa can also provide equity to close a financing gap and start construction or fund innovative solutions that need support to scale-up, to pilot new products or enter new markets. InfraCo Africa is funded by the governments of the United Kingdom (through FCDO), the Netherlands (through DGIS) and Switzerland (through SECO). To find out more visit: www.infracoafrica.com Anzana Electric Group: Anzana Electric Group (formerly Virunga Power) develops, invests in, and operates distributed renewable power generation and grid distribution projects that bring reliable and low-cost power to communities in Africa in order to support economic growth and development. Our private utility projects and companies are active in development, construction, and operations across East and Southern Africa. Anzana is a portfolio company of Gridworks Development Partners, a wholly-owned subsidiary of the UK’s British International Investment. To find out more, visit: www.virungapower.com