DEVELOPMENT OF SMALL POWER PROJECTS (SPP) IN TANZANIA
The Government of Tanzania (GoT) through the Ministry of Energy and Minerals (MEM), is establishing a framework for development of small power projects utilizing the abundant renewable energy sources in Tanzania. The move is in a bid to accelerate electricity access and promote the development and operation of small power projects among local and foreign private investors. The framework includes introduction of Standardized Power Purchase Agreement and Standard Tariff Methodology, which will be applicable between the developer and the buyer. Eligible Small Power Projects are those of capacity ranging from 100 kW to 10 MW and utilizing renewable energy source, intended to supply commercial electricity to the National Grid or isolated grid in Tanzania. The framework is being developed pursuant to the Electricity Act, 2008. The framework will reduce negotiation time and cost, and opens the possibility of implementing rural electrification projects.