The World Bank has funded an investment plan to scale up development of Tanzania’s abundant renewable-energy resources through an increased focus on geothermal development.
The World Bank’s Climate Investment Funds (CIF) is an establishment created to assist developing countries pilot transformations to clean technology. This investment plan, designed to transform Tanzania’s energy sector, emphasises a shift from its increasing dependence on fossil fuels and climate-sensitive hydro resources to a more diversified energy approach; geothermal development. The new energy approach will focus more on geothermal development and solar resources. The amount of money funded by the CIF is said to add up to roughly $50 million with the balance of the funding to be provided by the AfDB, the World Bank, local government, the private sector, commercial sources and other geothermal development partners.
Tanzania’s focus on geothermal development and developing renewable energy for rural electrification has received substantial support and approval showing signs of only optimism and success.
The AfDB states that the component of the geothermal development project will act as a catalyst for the development of more than 100 MW of geothermal power. The component of the project focusing on geothermal development and renewable energy for rural electrification will include investments in renewable-energy technologies, stakeholder capacity building, integration with public-private partnerships and the provision of technical assistance and advisory services.
By 2020, it is expected that per capita electricity use in Tanzania will increase from 78 kWh to 350 kWh, with yearly electricity output from renewable-energy sources increasing from 370 GWh/y to 2 000 GWh/y once the geothermal plant becomes operational. An additional $1.7-million in project preparation grants for the two components of the plan have also been approved