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Tanzania to Start Renewable Energy Auction

Tanzania – 6th July, 2015 - The Tanzanian Energy and Water Utilities Regulatory Authority (EWURA) declared on the weekend that it is presenting an aggressive auction for sun powered and wind renewable energy projects sooner rather than later.

As per the East African Business Week, EWURA’s director of power, Eng Anastas Mbawala demonstrated that the organization is in the last phases of arrangements for renewable energy projects in rural areas.

Mbawala said the recommendations will help Tanzania Electric Supply Company (TANESCO) and the Rural Energy Authority (REA) to pick investor through a bartering bidding procedure who cite sensible expenses particularly on solar oriented and wind hybrid projects.


In 2008, EWURA set up the avoided cost approach system ‘ whereby renewable energy project expenses spent by the investor would be reimbursed on the premise of TANESCO’s customer tariff pricing structure.

Mbawala clarifies that: ” Unfortunately the system was challenged on power projects concerning solar and wind due to the investment cost and the technology itself. So it was difficult for investors to reclaim their capital within the time planned.

“But on hydro and biomass projects, benefits went more to the investors rather than the government”,  Mbawala said.

Kenya’s renewable energy

In further east African news, Kenya has get under way the development of the Lake Turkana Wind Power (LTWP) project, as indicated by Quartz Africa.

The LTWP project site situated approximately 550km north of Kenya’s capital Nairobi, covers 40,000 acres of land and fueled by the ‘Turkana Corridor Wind’, a low-level jet stream starting from the Indian Ocean that blows lasting through the year.

The project, on completion, will comprise of 365 turbines each with a capacity of 850 kW and anticipated that would accomplish 68% load capacity factor, which will make it the most proficient wind force cultivate on the planet.

This renewable energy project forms part of Kenya’s Vision 2030 arrangement to include 5,000MW generation capacity to the national grid.

Project finance

The project is of huge vital advantage to Kenya, and at Ksh70 billion ($700 million) will be the biggest single-private interest in Kenya’s history. The project is funded by a consortium of investors under the support of the European Union with the African Development Bank as the lead arranger.

Kenya Power, in charge of the transmission, dissemination and retail of power all through the nation, has consented to an arrangement to purchase the power produced at a fixed price over a 20-year period.

The LTWP venture will surpass Tarfaya wind farm in Morocco, which is at present Africa’s biggest wind farm with 131 turbines. It will likewise be bigger than Ashegoda wind farm in neighboring Ethiopia, which opened in October 2013.

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Tanzania to Start Renewable Energy Auction Reviewed by Olumide Idowu on Monday, July 06, 2015 Rating: 5
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