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EWURA approves small power projects guide

EWURA approves small power projects guide

According to the new guidelines, EWURA gives the standardised small project tariffs aimed at accelerating rural electrification. The EWURA Principal Communications and Public Relations Officer, Mr Titus Kaguo, said on Tuesday that the standards were for small projects between 100KW and 10MW.

"The move is designed to accelerate electricity access and promote development and operations of small power projects among local and foreign private investors," adds the guidelines. The framework includes introduction of Standardised Power Purchase Agreement and Standard Tariff Methodology, which will be applicable between the developer and the buyer.

The guidelines say they also aim at  utilizing renewable energy sources, intended to supply commercial electricity to the national grid. They add that the government is developing a framework for development of small power projects utilising the abundant renewable energy sources in Tanzania pursuant to the Electricity Act, 2008.

"The framework will reduce negotiation time and cost and opens the possibility of implementing rural electrification projects," it notes. He said the guidelines come after consultations with various stakeholders. One of the small projects listed is the one to be executed by  a US based company known as KMR Infrastructure on a biomass project to produce 10MW of electricity in Kigoma and shut off of expensive diesel generators.

Up to $25m will be invested into this biomass power plant in Kigoma over the coming 3 years. In the current 2011/2012 budget, about 6.5bn/- was allocated to power 12 villages in Kigoma North, yet none has been remitted to REA to implement the project.

Kigoma municipality uses diesel-powered generators with installed capacity of 11MW. However, only 3-4MW is being produced and TANESCO spends 1bn/- monthly on running the generators but collects about 133m/-.

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Author: ORTON KIISHWEKO

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