Tanzania Hydropower plant gets $300m from AfDB, France and EU

  • The Kakano hydropower project will generate clean energy for 4 million people in Tanzania.
  • The Kakono will be a run-of-river hydropower project with an annual energy-generating capacity of 573 GWh.

The African Development Bank, the French Development Agency (AFD) and the European Union (EU) have agreed to provide $300m in loans to the government of Tanzania to build the 87.8MW Kakono hydropower plant. Tanzania is chiefly dependent on hydropower and gas-fired thermal power plants for its electricity generation.

By using the considerable untapped potential of renewable energy, the country will be able to meet the rapidly growing demand for energy using low-carbon methods. The resistance that a filter offers to the airflow in the ventilation and air conditioning system directly impacts a facility’s energy consumption.

The AfDB and the AFD have agreed to provide $161.47m and €110m ($121.2m) for the project, respectively, and the EU has made a grant of €36m ($39.6m). The Kakono will be a run-of-river hydropower project with an annual energy-generating capacity of 573 GWh. The project is being developed by Tanzania’s Electric Supply Company (TANESCO) and is expected to reduce greenhouse gas emissions by 216,065t per year. It is expected to be operational by the end of 2026.

The Kakono will generate enough clean energy to serve 4 million people and expand its service coverage to around 7% of the country’s population. It will significantly impact the region’s economic development, boosting industrialisation and economic growth in Tanzania and neighbouring countries.

African Development Bank Tanzania manager Patricia Laverley stated: “The construction of the new power plant will help improve TANESCO’s financial sustainability, arising from decommissioning the diesel-based power plants in the Kagera region. 

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