The Government of the United Republic of Tanzania through the Ministry of Energy (MoE), has established a framework for the development of small power projects by utilizing the abundant renewable energy sources in Tanzania. This is aims to accelerate electricity access and promote the development and operation of small power projects among local and foreign private investors. The framework includes Standardized Power Purchase Agreement and Standard Tariff Methodology, which are 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 has been developed pursuant to the Electricity Act, Cap 131. The framework will reduce negotiation time and cost, and opens the possibility of implementing rural electrification projects.