Kibo Energy has received formal notice from the Tanzania Electric Supply Company (TANESCO) inviting to develop the Mbeya Coal to Power Project (MCPP) for the export market.
The notice allows Kibo Energy to engage with the African power pools in relation to the off-take agreements for the project.
As announced on 8 March 2019, the MCPP remains a bankable project, fully developed up to bankable feasibility stage, with a potential generating capacity of 1000MW.
According to the company, there are multiple opportunities exist for the project including three distinct markets of utility, export and private off-take.
Kibo Energy CEO Louis Coetzee said: “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.”
Due to acute undersupply of power in Tanzania and the Southern Africa region and with Tanzania setting a target to deliver approximately 880MW for the export market for the period 2020-2040, the MCPP is expected to play a major role in addressing the demand.
Currently, TANESCO is implementing interconnectors through Zambia, Tanzania and Kenya enabling power trade within the Eastern African Power Pool and Southern African Power Pool member countries.
Kibo Energy said: “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.”
Currently, the company is also developing other coal-fuelled power projects in Africa: the Benga Independent Power Project in Mozambique; and the Mabesekwa Coal Independent Power Project in Botswana.
Kibo Energy is a multi-asset energy company focused on advanced power generation and mining projects in Sub-Saharan Africa and the UK.