A historic moment unfolded yesterday in Unguja as Taifa Group and Generation Capital Limited (GCL) signed a power purchase agreement (PPA) with the state-owned Zanzibar Electricity Corporation (ZECO). The Sh330 billion deal sets the stage for the first utility-scale solar photovoltaic (PV) project in Zanzibar, promising to generate 180 megawatts of electricity for the islands, a significant leap from the current supply of 125 megawatts from Tanesco.
Joseph Kilangi, the Permanent Secretary in the Ministry of Energy and Minerals, outlined the project's phased approach during the signing ceremony. He noted, "The project will kick off with the rapid construction of a 30 MW solar PV power plant at Bambi, Central District in South Unguja Region, slated for completion in 2024."
The energy and minerals minister applauded the move, emphasizing that it affirms Zanzibar's commitment to a sustainable development path. The project stood out among over 80 interested companies, demonstrating its potential to transform Zanzibar's energy sector, ensure a reliable supply of renewable power, and foster a green future for the tourism industry and other sectors.
The Zanzibar Investment Promotion Authority (ZIPA) has recognized GCL's strategic investor status, following their successful proposal for a multi-phase 180-megawatt renewable energy project in strategic locations across Zanzibar. GCL and Taifa Group, their local partner, are eager to quickly roll out the subsequent project phases, addressing the current power deficit that inhibits demand and restricts Zanzibar's economic growth.
Taifa Group’s chairman, Rostam Aziz, expressed excitement during the ceremony, announcing plans to incorporate advanced battery energy storage systems into the project's later stages to ensure a steady and efficient energy supply during peak evening demand.
Rostam Aziz further highlighted the project's alignment with Zanzibar's vision. "The incorporation of solar PV into Zanzibar's energy sector supports the Blue Economy agenda, promoting energy security, diversifying the energy mix, and encouraging sustainable development," he said.
He added that the initiative, a collaboration between Taifa Group, Generation Capital Limited, and the Revolutionary Government of Zanzibar, would provide the Zanzibar Islands with affordable, clean, and reliable power infrastructure. This, in turn, would stimulate rapid economic growth and improve the quality of life for all residents.
This landmark project also serves to reduce Zanzibar's reliance on mainland Tanzania's energy supply, thereby increasing access to clean energy and stimulating economic growth in the region. Aziz concluded by saying, "The signing of the PPA is a testament to the shared commitment and resolve of all parties to expedite Zanzibar's energy transition."
Generation Capital Limited and Taifa Group have pledged their continued collaboration with the Revolutionary Government of Zanzibar and local stakeholders, emphasizing their commitment to the successful implementation of the project and the realization of its extraordinary potential.