Masdar, TANESCO ink deal for 2GW RE development

A joint venture company will be formed for the project development.

UAE-based renewable energy firm Masdar and the Tanzania Electric Supply Company (TANESCO), Ltd. signed a Joint Development Agreement to develop renewable energy projects of up to two gigawatts (GW) in capacity.

In a statement, Masdar said the agreement aims to establish a co-owned joint venture firm to oversee the progress of the project development.

Through the joint venture, the two companies initially plan to develop around 600 megawatts (MW) of solar photovoltaic and onshore wind projects and further look into developing at least 2,000MW projects.

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“The agreement we are signing today will bring about a big revolution in the development of renewable energy in the country,” said TANESCO Managing Director Maharage Chande. 

Abdulla Zayed, head of Business Development & Investment at Masdar, said the signing of the agreement shows the company’s commitment to supporting Tanzania’s energy transition and target to reach 5,000MW capacity by 2025.

Chande and Zayed signed the agreement.

The Tanzanian government aims for an electrification rate of 75% for the entire country by 2035, according to Masdar.

TANESCO,  the only electricity provider in Tanzania, plans to increase renewable energy sources in its mix to meet the country’s power demand and raise energy access.