Value of PIDG investment
Tanzania has a rural electrification rate of just 3.6%. The majority of Tanzanians rely on kerosene, charcoal and diesel for domestic lighting and cooking, fuels which have been linked to respiratory illnesses and pollution. The Government of Tanzania has committed to exploring off-grid solutions to address the country’s rural power deficit. Solar power has been identified as offering a viable technology given Tanzania’s high levels of sunshine and the falling cost of solar photovoltaic panels.
REDAVIA rents containerised 87kWp solar farms to remote communities, utilities and businesses. Farms mostly hybridise with existing diesel generators, reducing diesel consumption and cost. InfraCo Africa funded a pilot project to deploy two solar farms in the villages of Shitunguru and Isenzanya and both now deliver reliable, safe, clean electricity to rural homes and businesses for the first time. A third container has since been commissioned in Zombo village. Taking account of stringent health and safety considerations, a preliminary batch of 65 households have so far been connected to electricity and demand is growing. Following the initial pilot project’s success, InfraCo Africa committed to the additional phased disbursement of up to US$4.7m to enable deployment of a further 28 containers, delivering up to 3MWp of clean power in total. The rollout will support Redavia’s growth, establishing a varied portfolio of up to 30 new customers, including small and medium-sized enterprises and local utilities.
REDAVIA’s solar-hybrid technology reduces costs by 20% to 30% and cuts diesel emissions. By supplying and maintaining the containerised solar farms, REDAVIA offers an affordable long-term solution for small businesses and rural communities. Reliable power will transform living standards and enable businesses operating in isolated communities to increase productivity and profitability. By demonstrating the commercial viability of Redavia’s innovative model, it is anticipated that the company will attract private sector investment to scale up the deployment of solar farms across sub-Saharan Africa. Once sufficient private finance and scale is secured, InfraCo Africa will exit the project, recycling its funds into the early stage development of other infrastructure projects that are vital for the region.
Our expectation is that electricity will provide us with light and help us in operating small industries such as sunflower oil making machines, maize milling machines, hairdressing salons, cold drinks, enjoying news and sports, better dispensary and laboratory services, students being able to study during the night, it will definitely bring a big change to our lives.