TAREA and REEEP Launch Renewable Energy Financing Platform
Tanzania Renewable Energy Association (TAREA) in cooperation with Renewable Energy and Energy Efficiency Partnership (REEEP) to which TAREA is a member, launched a Renewable Energy Financing Platform for mainland Tanzania. The event took place from the 30th to the 31st of March 2023 in Dar es Salaam. The event attracted more than 60 persons from banks, microfinance institutes, renewable energy distributors and contractors, and non-profits.
The platform provided an opportunity for renewable energy companies to present their financial needs before the banks and Rural Energy Agency (REA).
The private sector and banks had the opportunity of being informed of the regulatory and policy environment for renewable energies and rural electrification as presented by the Ministry of Energy.
TIB Investment Bank presented the facility of the Tanzania Rural Energy Expansion Program (TREEP) to the banks and private companies. It is the facility that provides finance at affordable interest rates and with less bureaucracy compared to finance products of other banks on renewable energy. World Bank delegation from New York presented the new renewable energy financing scheme under development and which will be administered by REA. The World Bank is developing the expansion of TREEP
REA presented additional financing schemes as follows: • Renewable Energy Project Facility • Results Based Financed (RBF) for the mini-grids • Results Based Financing for the Clean Cooking and Solar Home Systems (under development)
REA is working to make the beneficiaries access all financial schemes smoothly. REA is also working on resolving the challenge of the Tanzania Revenue Authority imposing VAT on the RBF.
Microfinance Institutes had the opportunity of presenting the renewable energy finance products and the challenge they face in operation, the major one being the quality of equipment.
The platform will be held twice a year. The next platform will be conducted in September 2023. In the meantime, TAREA and REEEP will facilitate the solutions to the challenges pointed out in the workshop.
TAREA and REEEP will invite other government agencies who are concerned with the development of renewable energy like the Electricity and Water Regulatory Authority (EWURA), Tanzania Electricity Supply Company (TANESCO), and Ministry of Finance and Planning to the platform that will be held in September 2023.