East African Business Week

DAR ES SALAAM, TANZANIA -  Tanzania is inviting international and local firms to venture into wind electricity generation to boost power output of this energy deficient country.
Eligible firms will be required to produce electricity for distribution to rural areas that are currently  not connected to the national power grid.  The project will see power firms supply and install wind turbines with a minimum of two megawatts (2MW) and a maximum of 10 (10MW) in designated rural areas.
The Director General of the Rural Energy Authority (REA), Dr Lutengano Mwakahesya, told the East African Business Week in Dar es Salaam recently that the accomplishment of the project will help cut the serious power deficit being experienced today.
Tanzania is going through power rationing and thereby causing loss to industrial production and social inconveniences. Some 50 out 250 industries have been forced to shut down as a consequence.
"All energy developments must provide information indicating that they are qualified and have technical capacity in executing energy projects," Mwakahesya said.
He said interested investors  should submit profiles relevant to the assignment. REA confirmed that some 10 local and international firms have so far shown interest in the project. The successful investor will get a Government subsidy of US$500 million to implement the project. To start with, the project will see pilot schemes in  locations of Makambako, Karatu, Mkumbara, Mafia island, Isevya, Rukwa, and Singida.
REA has recommended that eligible firm to enters into joint venture with the local Community based Organizations NGOs  in the respective areas in order to enhance acceptability hence promoting project security.
Tanzania has been in power deficit for decades now, which makes the country to suffer chronic power rationing largely due to over dependence on hydro power. The country's general consumption is more than 800MW in while it generates less than 450MW from hydro source and thermal power.
To solve the deficit, different sources have been suggested including the development using coal which is abundant in Tanzania, solar power, and even building a nuclear reactor because the country has large reserves of uranium.
Experts say production of the 2MW and 10MW from wind power will reduce the power deficit in Tanzania.
Recently, the energy deficient Tanzania has been engaging in different power generation contracts with the local and international organizations after a few disastrous commitments.
However, preparations are at an advanced stage for the construction of the country's first wind power project with capacity to generate 100 MW at Makambako in Njombe region in the southern Tanzania highlands to come on line in July 2013.
The investors say upon completion of the project it will be the second biggest wind power generation farm in East Africa after Lake Turkana in Kenya which produces 300MW.
The Makambako project is being carried out jointly by three partners namely Sino Tan Renewable Energy Ltd - a local company, MCC 20-Hainan International - a Chinese company and Norks Vind Energi of Norway.
The country is also gearing up for coal to electricity project in the nearly Mchuchuma/Liganga area  expected to generate 600 MW of electricity in a bid to diversify sources of energy, create jobs and boost
 industrialization.
Mchuchuma is estimated to bear 540 million tonnes of coal deposits, which is enough to produce 600MW of electricity for a period of over 100 years.