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June 26, 2024

Power Purchase Agreement signed to progress the Lilondi run-of-river hydropower project in Tanzania

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Barcelona, SpainAnzana Electric Group (formerly Virunga Power) and InfraCo Africa, part of the Private Infrastructure Development Group (PIDG), have today announced the signing of a Power Purchase Agreement (PPA) with TANESCO, the state-owned national utility of Tanzania, which took place earlier this month in Dodoma. The PPA signing is a significant milestone for the 4.6MW Lilondi Hydropower project which is expected to be the the first of a portfolio of six run-of-river hydro plants to be developed by the partners in Tanzania. The announcement was made during the annual Africa Energy Forum (AEF) being held this week at Fira de Montjuïc, Barcelona, an event attended by over 2,000 delegates active across the African energy sector.


Speaking at the AEF, TANESCO’s Managing Director, Gissima Nyamo-Hanga, said “Based on the importance of energy in the economic and social development of our country and any nation, TANESCO strives to ensure that our country has reliable electricity from various sources to meet current and future needs. The signing of this PPA is a step to fulfil this ambition.”


Located in the country’s Ruvuma Region, close to Tanzania’s border with Malawi, the Lilondi run-of-river hydro plant will supply clean, baseload power into both TANESCO’s local grid network and a high-voltage substation in Madaba District. The project seeks to contribute towards the achievement of SDG 7: Affordable, Reliable and Modern Energy for All, specifically around increasing renewables in the global energy mix.


Speaking at the AEF, InfraCo Africa’s Head of Business Development, Omar Jabri, said “InfraCo Africa and Anzana Electric Group have been committed to developing the Lilondi Hydropower project for several years. I would like to take this opportunity to recognise the dedication of colleagues across both companies as well as the commitment of the Government of Tanzania to diversifying the country’s renewable energy mix to include more small-scale hydropower.” Mr Jabri concluded, “The PPA signing for Lilondi marks a significant milestone for the development of Tanzania’s hydropower potential.”

Brian Kelly, the founder and CEO of Anzana Electric Group, said “Anzana is excited to have reached this important milestone with TANESCO after a lengthy development process and presence in the Tanzania dating more than a decade. Delivering on the promise of development is critical to our mission and reaching this milestone shows our team’s dedication to building and maintaining successful partnerships with local communities, governments, and financiers.” He continued, ”Anzana is grateful for the critical early support of InfraCo Africa and PIDG and recent investment from its new shareholder, Gridworks Development Partners.”


It is anticipated that Lilondi will demonstrate the viability of the country’s small hydro resource, attracting further private sector finance to the sector and enabling its replication across rural Tanzania and the wider region. A grant from PIDG Technical Assistance is being used to undertake pre-feasibility studies for the wider portfolio which is expected to add up to 50MW of clean hydropower to Tanzania’s rural electricity generation capacity.


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