After a contract signing with investors to generate 180MW from solar energy, Zanzibar will begin the generation of its own electricity for the first time. It is a move to reduce dependence on power transported from the Tanzania Mainland.
The contract, Power Purchase Agreement (PPA) was signed between Generation Capital Limited (GCL) and Zanzibar Electricity Corporation (ZECO). The investment will be in cooperation between the GCL, a Mauritian-based project development and investment firm, and the local company, Taifa Energy, a subsidiary of the renowned Taifa Group.
Tanzania’s Electric Supply Company (TANESCO) distributes about 130MW to the Indian Ocean semi-autonomous archipelagos. The new 180MW Solar PV Project is worth 330 billion and is anticipated to transform Zanzibar’s energy landscape, and will ensure the reliable supply of clean and renewable power to the citizens of Zanzibar, the tourism, and other industries. It will also pave the way for a sustainable future.
The Revolutionary Government of Zanzibar granted GCL strategic investor status through the Zanzibar Investment Promotion Authority (ZIPA) following their successful application to invest in Zanzibar. The project is expected to be completed on a fast track to facilitate the creation of jobs and sustainable development in critical sectors depending on reliable and affordable power supply.
Zanzibar’s Minister for Water, Energy, and Minerals, Mr. Shaibu Hassan Kaduara said during the contract signing that “today is part of our huge happiness..Zanzibar is going to become independent in power production”.
Construction of the project will be in phases and will begin with the quickened construction of a 30MW Solar PV power plant at Bambi, Central District in South Unguja Region to be completed in 2024. The investors plan to implement the following phases quickly because of the current lack of reliable power that creates suppressed demand and limits economic growth in Zanzibar.
Zanzibar’s renewable energy capacity will experience a boost through this project and also contribute significantly to the reduction of greenhouse gas emissions and the overall development of Zanzibar. The later phases of the project will comprise an advanced Battery Energy Storage that will ensure reliable and efficient energy supply during evening peak demand.
“Through the partnership, Zanzibar will have access to inexpensive, clean, and reliable power infrastructure that in turn will quickly foster economic growth and the improve the quality of life for all citizens”, Chairman of Taifa Group Mr. Rostam Aziz said. He also noted that the project is a significant milestone in the company’s dedication to Zanzibar’s renewable energy development.
The signing of the PPA translates to the collective commitment and determination of all parties involved to accelerate the energy transition in Zanzibar.