Masdar signs agreement with Tanzanian utility for renewable energy projects

Abu Dhabi's clean energy company setting up joint venture with Tanesco in Tanzania to develop projects with combined capacity of two gigawatts

Abu Dhabi's Masdar will initially focus on the development of solar photovoltaic plants in Tanzania. Photo: Adnoc
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Abu Dhabi's clean energy company Masdar has signed an agreement with Tanzania Electric Supply Company (Tanesco) to develop renewable energy projects with a combined total capacity of up to two gigawatts.

Masdar and Tanesco are establishing a joint venture entity that will initially focus on the development of solar photovoltaic (PV) and onshore wind clean energy projects with a capacity of about 600 megawatts, Masdar said in a statement carried by state news agency Wam on Friday.

The joint venture will then explore the development of further projects that will eventually push the total capacity to 2 megawatts, it said.

A joint development agreement was signed by Abdulla Zayed, head of business development and investment at Masdar, and Maharage Chande, managing director of Tanesco, on the sidelines of the Tanzania Energy Congress.

“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 5,000 megawatts capacity by 2025,” Mr Zayed said.

“We look forward to working with Tanesco to develop this ambitious programme and to provide a clean pathway for growth for Tanzania.”

Tanesco, the sole provider of electricity in Tanzania, is looking to add more renewable energy sources to the national grid as it looks to meet the country’s growing demand for power and to increase energy access.

The Tanzanian government is aiming for an electrification rate of 75 per cent for the entire country by 2035.

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

Masdar, which currently operates in more than 30 countries with a total investment of about $20 billion, is aiming to reach a capacity of at least 100 gigawatts by 2030 after growing its portfolio by 40 per cent last year.

Earlier this week, the company said it has achieved a financial close on its 230-megawatt Garadagh solar power plant in Azerbaijan as it continues to boost its renewables portfolio around the globe.

In June, Abu Dhabi National Energy Company — known as Taqa — Abu Dhabi National Oil Company and Mubadala Investment Company entered into binding agreements through which Taqa and Adnoc will acquire stakes in Masdar from Mubadala.

As part of the deal, Taqa will acquire a 43 per cent controlling stake in Masdar’s renewables business, with Mubadala retaining a 33 per cent interest and Adnoc owning the remaining 24 per cent.

In Masdar’s new green hydrogen joint venture, Adnoc will hold a 43 per cent controlling stake, Mubadala will retain a 33 per cent interest and Taqa will hold a 24 per cent share.

Updated: August 06, 2022, 4:05 AM
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