16 Million Euros solar power project inaugurated in Tanzanian Island

UKARA, TANZANIA: Residents of Tanzania’s Ukara Island are set to benefit from a 16 million Euros (39 billion Tanzania Shillings) power project installed by development partners.

The Tanzanian company JUMEME Rural Power Supply, together with its partners, launched the solar-powered mini-grid on the Lake Victoria island on April 5.

 The system will provide reliable and affordable electricity to nearly two thousand households and over 200 businesses on the Island, enhancing people’s income generation opportunities and productivity for a range of commercial activities.

This is the first of 30 systems to be installed by JUMEME over the next 2 years, supplying reliable electricity to around 100,000 people.

The ‘pilot’ mini-grid has been set up in Bwisya, the largest village on Ukara, where 250 customers will be connected to a hybrid power station consisting of a 60 kilowatts peak (kWp) solar PV system, a 33 kVA diesel genset, and a 240 kilowatt hours (kWh) battery bank. The system will be extended in the second half of this year to connect the other villages on the island with a total of 2,000 customers.

“Our goal is to set up 300 systems and serve up to 1 million people in rural areas across Tanzania by 2022, making JUMEME the largest mini-grid operator in the country”, said Rev. Dr. Thadeus Mkamwa, one of JUMEME’s Directors and Vice-Chancellor of St. Augustine University of Tanzania.

To ensure successful implementation of the project, JUMEME has joined forces with partners such as GVEP International.

“GVEP is playing a key role by advising entrepreneurs on the use of energy for economic transformation. We have trained the village power committee members on the technologies and business skills that will enable them to utilise electricity for productive purposes. Energy entrepreneurs including artisans are also being trained,” said GVEP Project Manager Fredrick Mushi.

One such entrepreneur is Samweli Nyakalege, who uses the mini-grid power for rice and maize milling.

“The new power supply is a blessing, as it enables us to serve more customers more quickly and efficiently. Additionally, it has brought health benefits compared to the old diesel generator,” he said. Thanks to the increased volume of sales, Nyakalege has employed more staff. He now plans to apply for more funding to further expand his business.

The project is co-funded by the European Union under the European Commission ACP-EU Energy Facility with a commitment of 7.4 Million EUROS (around 17.8 Billion Tanzania Shillings). 50 per cent of the project cost is covered through private investment (both equity and debt). For the implementation of the pilot project in Bwisya, JUMEME receives additional co-financing from the Energy and Environment Partnership Programme with Southern and East Africa, Phase II. Grants for technical assistance are provided by the Overseas Private Investment Corporation, the Sustainable Energy Fund for Africa and the Global Climate Partnership Fund.

“The pilot project on Ukara Island is a first step towards a sustainable power supply for many of the remote communities in Tanzania that are still without access to electricity”, said Joseph Mkirikiti, District Commissioner of Ukerewe District, and Mwanza Region. “We endorse this project and the approach of JUMEME, as it is in full compliance with the goals of the Government of the United Republic of Tanzania to bring reliable electricity supply to all Tanzanians and to provide the right conditions for sustainable economic development in the rural areas”, added the District Commissioner.

The EU Delegation Head of Natural Resources, Gianluca Azzoni, who attended the inaugural event, said: “This project is yet another showcase of Europe's commitment to help ensure access to affordable, reliable and modern energy services not only to Tanzanian households in remote settlements but also to agricultural enterprises, businesses and public infrastructures. By 2018, the EU funds in this project will see several Mini-Grids installed providing electricity to 11,000 households, 2,600 agricultural enterprises and businesses, and more than 80 public infrastructures like schools, clinics and religious buildings.”

The Chairperson of the Bwisya Village Power Committee Lazaro Kabunga said: “We are extremely grateful for the collaboration with JUMEME. We are not only expecting a general improvement of living conditions at household levels, but also a boost of economic activities. We acknowledge the fact that JUMEME is a private company that charges the real cost for the provided services. The costs are significantly lower in addition to the better quality compared to the energy sources we have been using up to now.”