CIF backs 100-MW geothermal project in Tanzania

The Climate Investment Funds (CIF) will provide USD 21.7 million (EUR 18.8m) in loans and grants for an up to 100-MW geothermal project in the United Republic of Tanzania.

Once operational, the plant will be producing up to 823 GWh per year on the grid, the African Development Bank (AfDB) said today. Thus it will reduce energy imports and boost Tanzania's energy security.

The project is backed by CIF’s Scaling-up Renewable Energy Programme (SREP) and will receive USD 5 million in the form of a loan and USD 16.73 million in grant resources to be implemented by AfDB.

Located in the Ngozi geothermal steam field, the activities include exploratory test drilling and installation of the required steam gathering infrastructure.

Even though the country is still fighting poverty and an under-developed energy sector, heavily dependent on fossil-based and hydropower plants, it has around 15 geothermal sites with an untapped estimated potential of 650 MW, AfDb noted.

(USD 1 = EUR 0.896)

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