A key challenge facing developers of small hydroHydros generating a capacity of up to 10MW are classified as small hydro.Small hydro is the development of hydroelectric power on a scale serving a small community or industrial plant. The definition of a small hydro project varies but a generating capacity of up to 10 megawatts (MW) is ... projects in Tanzania is the lack of access to finance. To help counter this, GVEP is implementing a Pre-Investment Technical Support programme in collaboration with the World Bank and Tanzania’s Rural Energy Agency (REA).

The aim of this programme is to build the capacity of project developers by assisting them to complete feasibility studies, business plans and Environmental and Social Impact Assessments (ESIAs), all of which can be costly and time-consuming. GVEP’s support will enable the developers to access subsidies available through the Tanzania REA and secure loans from local banks.lightbulb.gif

GVEP International is collaborating with Rural Energy Agency (REA) in supporting six mini-hydropowerHydro power is electrical energy produced through the power of moving water. Power obtained from the (typically gravitational) movement of water. (MHPMini Hydro is a term used for hydroelectric power installations that typically produce between 100kW to 1000kW. They serve remote communities or nearby factories.) project developers. The six projects have a combined capacity of approximately 7.5 MW, and are located across Tanzania in the regions of Mbeya, Iringa, Ruvuma, Arusha and Kigoma. Most are isolated mini-gridsMini-grids are useful to harness local renewable energy resources near-by consumption. Often a good solution for remote, previously off-grid areas. not connected to the main electricityElectricity generation includes all technologies that turn some form of energy into useful electric energy. Electricity is a form of energy that has magnetic, radiant and chemical effects. Electric current is created by a flow of electrons. network.

James Wakaba, GVEP’s Regional Manager for Africa states, “The traditional barriers to renewable energyRenewable energy is power generated from infinite sources, such as wind or solar power. Conventional energy is generated from finite sources, such as natural gas or fossil oil. project development include difficulties in early stage project development due to high costs and lack of capacity to carry out feasibility studies. Projects also need to complete environmental impact assessments and have proper financial structuring. GVEP is proud to work with REA in this World Bank sponsored programme which is assisting the selected Tanzanian companies to realise energy generation from renewable mini-hydroMini Hydro is a term used for hydroelectric power installations that typically produce between 100kW to 1000kW. They serve remote communities or nearby factories. resources. This will help more Tanzanians access energy and create economic opportunities and provide social benefits. One project will supply clean energy to the gridA grid is a network of transmission lines, usually to distribute electric power ., providing an alternative to fossil fuelEnergy from fossil sources, such as natural gas and oil. This type of energy contributes to climate change and because of its finite nature it is not a permanent resource.-based electricity. In addition, projects will help reduce global warmingHuman activities are adding greenhouse gases, particularly carbon dioxide, methane and nitrous oxide, to the atmosphere, which are enhancing the natural greenhouse effect. While the natural greenhouse effect is keeping average temperature on earth at about +15°C, this enhanced greenhouse effect ..., earn carbon creditsCarbon credits provide a way to reduce greenhouse effect emissions on an industrial scale by capping total annual emissions and letting the market assign a monetary value to any shortfall through trading. and create sustainable energy businesses with project development capability.”water.gif

This programme is supported by the Energy SME Trust Fund, financed by the Russian Federation and administered by the World Bank. The fund was established in April 2009 to support energy SME development in sub-Saharan Africa.