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An update on the Mbeya Coal to Power Project

Published by , Editorial Assistant
World Coal,

Kibo Energy PLC, an Africa-focused energy company, has announced that it has received formal notice from the Tanzania Electric Supply Company Limited (TANESCO) inviting it to develop the Mbeya Coal to Power Project (MCPP) for the export market, thereby enabling the it to engage with the African Power Pools regarding off-take agreements.

The MCPP is fully developed up to bankable feasibility stage, with a potential generating capacity of 1000 MW. Multiple opportunities exist for the project including three distinct markets: utility, export and private off-take. The existing acute undersupply of power within Tanzania and the Southern Africa region, means that there is an urgent demand for electricity and given that Tanzania has a target to deliver approximately 880 MW for the export market for the period 2020–2040, the MCPP could help meet this demand.

The company has received confirmation from TANESCO that it can develop the MCPP for the export market. TANESCO has advised the Company that it is currently implementing interconnectors through Zambia, Tanzania and Kenya enabling power trade within the Eastern African Power Pool and Southern African Power Pool member countries. TANESCO has recommended that the company engage these Power Pools to ensure participation in the high demand export market. Furthermore, the company also remains engaged with TANESCO, regarding potential energy supply opportunities to the domestic market.

Louis Coetzee, CEO of Kibo Energy, commented, "Our recent correspondence with TANESCO further consolidates our belief that the MCPP continues to have significant economic and strategic importance for the company, Tanzania and the region. The project is located close to potential private offtake partners with whom the company has already engaged on their significant offtake requirements and TANESCO's active development of the interconnectors brought into play the clear and definite short-term potential for Kibo to actively participate in the growing power export markets. In addition to engaging potential local private offtake partners, the company have also initiated contact with the various power pools referred to above."

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