Austrian renewables company RP Global has started work on the first phase of a solar-hybrid mini-grid project in Tanzania.
RP Global is a majority shareholder in Jumeme Rural Power Supply, which has started construction of 11 new mini-grids that aim to provide electricity to over 80,000 people 24 hours a day
The mini-grids are being built on a cluster of islands in Lake Victoria and are equipped with battery storage to help electrify 20 villages.
Funding for the project has come through the EU’s ACP-EU Energy Facility and Tanzania’s Rural Energy Agency.
Commissioning is scheduled to take place in June, RP Global said.
The second phase will see a further 11 mini-grids built to supply power to 23 additional villages.
Consents and permits have been secured and preparations for the implementation are taking place, RP Global said.
RP Global Africa director Leo Schiefermuller said: “Besides the existing legal framework and the favourable solar resources, our decision to invest in Tanzania is a direct consequence of the low electrification rate in the country.
“Solar hybrid mini-grids are the least-cost electrification option, especially in rural areas and the pay-as-you-go business model of Jumeme makes electricity consumption for the customer affordable.
“Many of the remote communities in Tanzania are still without access to electricity. So far, our regions of operation show some of the lowest rural electrifications rates in Tanzania, ranging between 3%–5%.
“In these areas, the population is widely dispersed across numerous distant villages and small towns making it hard to connect them through the national grid.
“By 2023, Jumeme could supply high quality and reliable electricity to 1 million Tanzanians, making this company the largest mini-grid operator in Sub-Sahara Africa, if the political and regulatory situation improves for investors.”