Suma 3,8 MW Hydro & Rural Electrification Project

Project Developer: Suma Hydro Ltd.

Project Partners: TATEPA, AGDEVCO (Joint Venture Partners), AECF

Project Status: Under construction

The Suma  3,8 MW Hydro & 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 capacity of 3,8 MW and an annual generation output of about 21.8 GWh. It is being developed as a joint venture between RVE, TATEPA and AGDEVCO, in cooperation with the AECF.

The main off-taker of the produced electricity will be the National Utility (TANESCO) 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 the neighbouring tea industry 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. Through the increased capacity the project will further provide a higher network stability, which means all rural customs in the area will enjoy better electricity services. This project will also have a positive effect on TANESCO, not only through a reduction in distribution and transmission losses, but also as “green distributed electricity generation” will help to partially displace expensive, diesel based emergency-power, with low cost, sustainable energy. In 2020 this project qualified for the RBF II grant and is currently awaiting the final award process to be closed.