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British International Investment (BII), the financial arm of British diplomacy, is providing $15 million in funding to Rift Valley Energy (RVE). The Meridiam-owned company builds and operates wind farms to supply local electricity grids.
Good news for Rift Valley Energy (RVE). The company, based in Mafinga in Tanzania and wholly owned by the French investment company Meridiam, has received $15 million in funding from British International Investment (BII), the financial arm of British diplomacy. The funding, which could be increased to $25 million, will support part of RVE’s investment and development plan for future renewable energy projects in Tanzania.
In this East African country, RVE has become a major player on the energy scene, investing in access to electricity in remote areas. The company builds and operates electricity networks. Unlike mini-grids and other metropolitan electricity networks powered by hybrid solar energy, which have become widespread in several sub-Saharan African countries in recent years, RVE builds small wind farms and hydroelectric schemes.
Financing for an installed capacity of 7 MW
In Mwenga, in the Mufindi district, RVE has commissioned a 2.4 MW wind farm installed with the financial support of the Trade and Development Bank (TDB), the commercial bank belonging to the member states of the Common Market for Eastern and Southern Africa (COMESA). The electricity generated by the wind farm will feed into the RVE grid in the Iringa region. Stretching over 400 km, the mini-grid connects 4,500 homes and businesses in 42 villages.
The BII funding should support the development of an installed capacity of 7 MW, enough to supply 170,000 people with electricity and connect 4,000 businesses. “Around 1,800 new energy-related jobs will be created and the project is expected to avoid up to 17,000 tonnes of carbon emissions per year by the end of 2027,” estimates the London-based development finance company.
In the Mufindi district, RVE will install a second 2.5 MW wind farm. This is a vector for development in a region whose economy is dominated by farming, industrial and artisanal tea growing, small-scale timber plantations and various subsistence farming activities. These investments will make it possible to electrify rural Tanzanian areas, where only 24% of the population has access to electricity. Nationally, the rate is estimated at 34%. |
