TANZANIA: BII Funds $15m for Wind-Powered Mini-grids
Posted on : Monday, 1st July 2024
Rift Valley Energy is receiving $15 million in investment from British International Investment (BII), the financial branch of British diplomacy (RVE). The company, owned by Meridiam, constructs and manages wind farms to supply nearby electrical systems.
The French investment company Meridiam, with its headquarters located in Mafinga, Tanzania, is the sole owner of the company. British International Investment (BII), the financial branch of British diplomacy, has contributed $15 million to the venture. A portion of RVE's investment and development strategy for upcoming renewable energy projects in Tanzania will be supported by the $25,000 (potentially up to $25 million) financing.
RVE has emerged as a significant force in the energy sector in this East African nation by making investments to provide rural areas with access to electricity. The business creates and runs electrical networks. In contrast to hybrid solar-powered metropolitan electricity networks known as mini-grids, which have gained popularity in a number of sub-Saharan African nations recently, RVE constructs tiny wind farms and hydroelectric projects.
A 2.4 MW wind farm located in Mwenga, Mufindi district, has been put into operation by RVE with financial assistance from the Trade and Development Bank (TDB), a commercial bank that serves the member states of the Common Market for Eastern and Southern Africa (COMESA). The RVE grid in the Iringa region will receive the electricity produced by the wind farm. The mini-grid, which spans more than 400 km, links 4,500 residences and commercial buildings in 42 villages.
The development of an installed capacity of 7 MW, which would be sufficient to connect 4,000 enterprises and provide electricity to 170,000 people, should be supported by the BII funds. The London-based development finance firm projects that by the end of 2027, "up to 17,000 tonnes of carbon emissions per year will be avoided and around 1,800 new energy-related jobs will be created."
RVE intends to construct a second 2.5 MW wind farm in the Mufindi district. This is a development vector in an area where farming, small-scale wood plantations, artisanal and industrial tea growing, and diverse subsistence farming activities predominate. In Tanzania, where only 24% of people have access to electricity, these investments will enable the country's rural areas to become electrified. The percentage is predicted to be 34% nationwide.
