Tanzania Electric Supply Company (Tanesco) has received green light for the development of the Mbeya coal-to-power project (MCPP). Aim and JSE listed Kibo received the notice.
The green light now enables JSE listed Kibo to engage other African power pools on offtake agreements. The power project is available to three market opportunities including export, utility and private offtake.
“There is an existing acute under supply of power within Tanzania and the Southern African part at large, meaning that there is still an urgent demand for electricity and given that Tanzania has a target to deliver about 880 MW for the export market in the period between 2020 and 2040, the MCPP is well positioned to help meet this high demand,” stated Kibo Energy.
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According to feasibility studies done, the project has a potential to generate 100MW of power. Tanesco implemented the power interconnectors through Zambia, Tanzania and Kenya, enabling power trade among the Eastern African Power Pool and the Southern African PowePool member countries.
Additionally Kibo was asked to engage the power pools to ensure participation in the high demand export market. The notice from Tanesco was however not subject to any tender process. It is unrelated to the tender refereed in February.
“Our recent engagement with TANESCO shows our belief in MCPP which continues to have significant economic importance for not only Tanzania but the region too. I’m looking forward to updating shareholders on the details and progress of MCCP,” said Kibo CEO Louis Coetzee.
