THE UNITED REPUBLIC OF TANZANIA
MINISTRY OF ENERGY AND MINERALS
RURAL ENERGY AGENCY (REA)
TANZANIA MINI-GRID RENEWABLE ENERGY PROJECT
CALL FOR APPLICATION FOR GRANT SUPPORT UNDER THE RENEWABLE ENERGY PROJECT DEVELOPMENT FACILITY (REPDF)
- In support of its- min-grid renewable energy project which is jointly funded by sida, DFID and the world bank the REA has launched several support mechanism to enhance the development of mini-grid electrification project in mainland Tanzania
- One of these support mechanism is the Renewable Energy Project Development Facility which was launched in early 2019 and has gained good traction since then
- The REPDF provides funding for eligible project development activities for renewable energy (solar, wind, small hydro and biomass) min-grids with generation capacities of less than 10MW to pay for a portion of the development external costs of consultants engaged to undertake specific pre-investment advisory assignment(e.g feasibility studies, business plans, social & environmental assessments)
- The REPDF has2 components
i. Tier caters for early stage project development and is available for feasibility studies and other consultancy services a grant of up to $ 100,000 per project is available and needs to be matched with 10% developer contribution(in the form of financial payment not in-kind)
ii. Tier 2 caters for late-stage project development(after feasibility study and site/resources control being in place) with a contingent recovered grant of up to $150,000 per project that needs to be matched with 25% developer contribution(in the form of financial payment no in-kind) - Project that do not include the min-grid component those will supply directly to the national grid or anchor customers are eligible for REPDF support with a maximum 25% of the total REPDF project development support budget of $5.25 Million having set aside
- The REPDF support is available for consulting services in the following three categories
i. Technical and engineering advisor services
ii. Business advisor services
iii. Environmental advisor services - Project that have benefited from REPDF support are eligible to benefit from Tier support too
3. Another support mechanism is the strategic developer program which aims to facilitate partnership between
i. Inexperienced local project developers who lack skills and capital and
ii. Experienced and well capitalized project development who have a proven track record of developing and implementing renewable energy small power projects in Tanzania or elsewhere in East Africa
- The SDP is distinct window within the REPDF (with an allocation of $ 1.5 Million in REPDF reserves) that aims to assist local developers with viable projects to complete those projects for the benefit of their communities and the nation though creating these partnerships
- Capable and well-capitalized developer may apply to REA be registered as strategic developers. REA will endeavor to match inexperience local developers with registered strategic developers but such partnership may also be facilitated through own effort on the part of the developers
- Partnership that have contractually been formalized eg a joint venture are eligible to apply to REA for a grant funding allocation under the SDP
i. if successful a forward allocation of REPDF funds of up to $500,000 will be reserved for the partnership for a period time of (18-24 months)
ii. these reserved funds may be accessed via the established REPDF mechanism (tier 1 & 2) application on project by project basis
4. REA is inviting applications for both REPDF and SDP support mechanism application form are available download from REA Website www.rea.go.tz the following deadline apply
- REPDF there is no deadline for tiers 1& 2 application, however application will be dealt with on a first-come-first reserved basis until the REPDF funds are exhausted
5. Clarification and further information may be obtained from REA Program consultant for the Min- Grid Renewable energy project at the following emails
- Mr francois viljoen ( business support specialist) [email protected]
- Mr Ralf Tobich ( Technical Specialist) [email protected]
Source Daily News 12 March 2020
