Project Developer: Suma Hydro Ltd.
Project Partners: TATEPA, AGDEVCO (Joint Venture Partners), AECF
Project Status: Under construction
The Suma Hydro Power & Rural Electrification Project will be a run-of-river hydro power plant located on the Suma river near the villages of Malamba and Bunyakikosi in the Rungwe District, about 15km from the nearby Tukuyu Township. The project is an integrated, private, renewable energy infrastructure project, with an expected maximum output of 1 MW and an annual generation output of about 6.8 GWh. It is being developed as a joint venture between RVE, TATEPA and AgDevCo in cooperation with AECF.
The main off-taker of the produced electricity will be the National Utility (TANSECO) buying about 99% of the output through a Standardized Power Purchase Agreement (SPPA) under the Second Generation Small Power Producer Framework. In addition to this, there will be an opportunity to directly connect clusters of rural housing and small businesses that are within close proximity to the main line from the power station to the national grid.
The main project benefits will be to provide increased stability to the network, enabling neighbouring tea factories to reduce their reliance on costly and environmentally unfriendly back up diesel generators, as well as increase value through reduced maintenance costs and enhanced processes. The project will further provide for greater rural electrification through increased capacity and stability on the network and direct connection of rural clusters in close proximity to the SHPP distribution line. Another positive effect will be cost savings for TANESCO, through a reduction in distribution and transmission losses as a result of increased local network stability, as well as partially displacing expensive liquid fuelled emergency power generation units with lower cost, sustainable renewable generation.