The United States and its partners will work with an initial set of Power Africa countries, including Ethiopia, Ghana, Kenya, Liberia, Nigeria, and Tanzania. These countries have set ambitious goals in electric power generation and are making the utility and energy sector reforms to pave the way for investment and growth.
Power Africa will bring to bear a wide range of U.S. government tools to support investment in Africa’s energy sector. From policy and regulatory best practices, to pre-feasibility support and capacity building, to long-term financing, insurance, guarantees, credit enhancements and technical assistance, Power Africa will provide coordinated support to help African partners expand their generation capacity and access.
The U.S. will commit more than $7 billion in financial support over the next five years to this effort. Power Africa will also leverage private sector investments, beginning with more than $9 billion in initial commitments from private sector partners to support the development of more than 8,000 megawatts of new electricity generation in sub-Saharan Africa.
The Government of Tanzania’s Big Results Now initiative for 2016 aims to phase out high cost emergency power plants, increase generation capacity to 2,780 MW, reform the public utility’s operations, and meet new demand through low-cost solutions, such as developing new gas resources and mini and off-grid renewable opportunities.
Tanzania has made progress by entering agreements with independent power producers, who bring know-how and technology, and establishing feed-in tariffs that provide many of the commercial terms that would otherwise delay negotiations on power purchase agreements.
Power Africa is supporting the Tanzanian energy sector through transaction assistance for priority generation projects, technical advice to release the constraints to private sector investment, and capacity building for key institutions.
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