Masdar has entered into a Joint Development Agreement (JDA) with Tanzania Electricity Company Limited (TANESCO) to construct renewable energy projects in Tanzania with a capacity of up to 2 GW.
In order to facilitate the project’s development, the JDA envisions the creation of a jointly owned joint venture (JV) corporation by the two entities.
Maharage Chande, MD of TANESCO, stated that the partnership’s initial phase is anticipated to produce about 600 MW, with other projects continuing until 2,000 MW is reached.
Masdar’s Head of Business Development and Investments, Abdullah Zayed, stated:
“The signing of this contract demonstrates Masdar’s commitment to the Tanzanian market and the country’s energy transition, in support of its goal of reaching 5,000 MW capacity by 2025. Together with TANESCO, these large-scale development initiatives will help Tanzania develop.”
Through the joint venture, the companies aim to develop renewable energy projects with a capacity of approximately 600MW, initially starting with photovoltaic (PV) and onshore wind projects. The joint venture will further consider developing projects with a total capacity of at least 2,000 MW.
TANESCO, the country’s sole electricity supplier, wants to add more renewable energy sources to the national grid in order to meet the country’s increasing electricity demand and expand energy access. The Tanzanian government has set a target of 75% electrification across the country by 2035.
Masdar recently announced that the 230 megawatt (MW) Galada solar power plant in Azerbaijan has reached “financing completion.” This is the country’s first foreign investment-based independent solar power project, as well as Masdar’s first project in the country.
