Utility Scale Energy Projects
The focus of our “grid-connected” strategy is to deliver renewable, green energy directly to the power grid using solar photovoltaic “PV” and run-of-river hydropower energy generation models.
Our plan is to develop grid-connected facilities with a maximum individual site capacity of 10 megawatts. Tanzanian projects of less than 10 megawatts are classified as “Small Power Projects” (SPP’s) and offer a number of advantages. SPP’s receive payments from the Tanzania Electric Supply Company “TANESCO” indexed in US dollars, and are subject to less stringent regulations. In addition, they receive preferential support and consideration regarding their funding by the various international developmental institutions and the REA.
SPP sites also allign with our business strategy to focus on rural markets. Smaller scale, individual projects diversify business risk and will allow us to dramatically increase the developmental impact of our efforts.
Kilosa Town – Utility-Scale Solar Project
Ilundo – Utility-Scale Hydropower Project
Solar PV Pipeline Projects
We have identified seven potential sites for “utility-scale” solar PV facilities, which are being evaluated for commercialization. For the first site, we’ve received a Letter of Intent from TANESCO for the planned development, and the full feasibility study is underway, with completion expected in the third quarter of 2018. Sites for two additional locations have been acquired and preliminary feasibility studies are currently being developed. We expect to apply for Letters of Intent for these two additional sites, in the second half of 2018. The fourth site has been identified but requires further reconnaissance to determine its commercial potential.
In March 2018 the Company received approval from REPP (Renewable Energy Performance Platform) for a facility to partially fund the technical, environmental and engineering studies for the pipeline projects. The studies will begin in April and are expected to be completed by year end 2018.
Run-of-River “R-o-R” Pipeline Projects
|We’ve established a strategy to streamline the development process for small hydropower facilities that improves the speed to market of our portfolio. RPA has partnered with us to provide comprehensive engineering support for a portfolio of projects. Together with Rickly Hydrological Company of Columbus, Ohio, we’ve established a consortium of Ohio-based, small hydropower equipment manufacturers. The consortium will be used to source the equipment for the projects. In addition, we will leverage their local (in-country) facilities and resources, to help us manage local supply chain components.
By integrating the engineering, procurement, and logistics teams into a single group, we expect to cut up to 18 months out of the normal “idea to power” development process. This will benefit both our customers and our investors: it will deliver electricity more quickly, and achieve better returns by delivering earlier revenue streams.
A feasibility study has been completed for a 1.5 MW facility and the Company expects to receive an LOI for the project in 2018. Field evaluations for two additional projects have been competed and are being evaluated for commercial potential.