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350 MW Combined Cycle Power Plant
Tanzania Electric Supply Company
Astra and the Tanzania Electric Supply Company, (“TANESCO”) executed a memorandum of understanding (“MOU”) to develop and construct a 350-megawatt (“MW”) combined cycle power plant in mainland Tanzania. Subsequently, Astra intends to proceed with the development of a bankable feasibility study and initiate negotiations for a long-term power purchase agreement, arranging for financing to design, develop, operate, and maintain the power plant as an independent power producer, selling the power to TANESCO.
The 350 MW of power to be generated at the proposed plant will augment the country’s baseload and enable TANESCO to meet the soaring demand for electricity caused by the growing population and economic growth.
We believe that a viable and sustainable path to prosperity requires preservation of Africa’s natural resources by providing access to reliable, modern energy. Availability of modern energy is key to stimulating Africa’s economic growth and it reduces the need for traditional biomass that is responsible for depleting Africa’s natural forests.
Recent data shows that the average per-capita electricity consumption in Tanzania is 108 KWH per year, just a fraction of the 2,500 KWH worldwide average. A large factor in this statistic is that currently less than 40% of Tanzanian households are connected to electricity.
Astra’s involvement in Tanzania and the success of the project will play a transformative role in modernizing the country’s critical energy infrastructure, providing reliable, sustainable, affordable power and creating both direct and indirect jobs for the Tanzanian people.
The potential socio-economic benefits from improving energy access will extend into many areas including local value creation and is directly linked to the achievement of the following United Nations Sustainable Development Goals.