Emirati state-owned renewable energy firm Masdar has signed an agreement with the Tanzania Electric Supply Company (TANESCO) for developing 2GW of renewable energy capacity in Tanzania.
Masdar Business Development and Investment head Abdulla Zayed signed a joint development agreement with TANESCO managing director Maharage Chande.
As part of the collaboration, the two companies will create a co-owned joint venture (JV) to progress the project development.
Under the JV, Masdar and TANESCO will initially focus on developing 600MW of capacity across solar photovoltaic (PV) and onshore wind assets.
The JV also plans to explore opportunities for a further 2GW worth of renewable energy projects.
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 5,000MW (of) 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.”
TANESCO is Tanzania’s only electricity provider and intends to add more renewable energy capacity to the country’s national grid to meet the increasing demand for electricity and energy access.
The Tanzanian Government aims to reach a nationwide electrification rate of 75% by 2035.
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 600MW, and we will continue with other projects until we reach 2GW.”
Earlier this month, Masdar achieved financial close for its Garadagh solar PV plant in Azerbaijan.
The 230MW solar project is the company’s first in Azerbaijan and the country’s first independent solar project funded by foreign investment.