Dar es Salaam, Tanzania, October 15,
2015— IFC, a member of the World Bank Group, this week launched a
$5 million program to increase access to energy in Tanzania by developing
a market for mini-grids. The initiative aims to bring affordable, off-grid
renewable energy to households and businesses in rural Tanzania.
IFC will work with project developers in
Tanzania to promote commercially viable mini-grid business models, and
will advise banks and financial institutions on how to extend long term
finance to mini-grid developers.
Tanzania has been selected as one of the
first countries to test the concept of using small-scale renewable energy
production sources under a new program, called the Scaling-up Renewable
Energy in Low Income Countries Program. In Tanzania, it aims to help diversify
energy production away from fossil fuel based sources.
Mini-grids are technically and commercially
viable for high-density populations that live outside the reach of the
national electricity grid. The Tanzanian government estimates that about
half of the country’s rural population could be served by off-grid options
in a cost-effective manner. Mini-grids could provide access to electricity
for 9.1 million people in Tanzania.
Lutengano Mwakahesya, Director General of
Tanzania’s Rural Energy Agency said, “We have an urgent task ahead of
us to increase energy access in Tanzania. Mini-grids are a key part of
the solution, so this program with IFC is an essential step to improve
the quality of life of households, demonstrating the role of the private
Tanzania’s Ministry of Energy and Minerals
was closely involved in developing the mini grids program, and was represented
at the event by the Assistant Commissioner, Mr. Edward Ishengoma.
Dan Kasirye, IFC’s Resident Representative
for Tanzania, said “IFC aims to help develop a robust mini-grid market
in Tanzania, which will create investment opportunities in the renewables
sector and help fill the country’s energy gap. We plan to mobilize the
financial resources and expertise of the private sector to expand energy
services to low-income communities.”
IFC, a leader in renewable energy finance,
helps developing countries transition to a low carbon future. Over the
past three years, IFC has financed close to $3.5 billion in renewable energy
projects worldwide, including biomass, geothermal, hydro, solar, and wind.
IFC, a member of the World Bank Group, is
the largest global development institution focused on the private sector
in emerging markets. Working with more than 2,000 businesses worldwide,
we use our capital, expertise, and influence, to create opportunity where
it’s needed most. In FY15, our long-term investments in developing countries
rose to nearly $18 billion, helping the private sector play an essential
role in the global effort to end extreme poverty and boost shared prosperity.
For more information, visit www.ifc.org