The Tanzania Electric Supply Company is proposing to build the Kakono hydropower plant on the Kagera River and construct a 220 kV transmission line from the planned plant to a substation. The overall project objective is to improve the power supply in northwestern Tanzania in addition to the increasing grid-connected generation capacity in order to foster economic growth.
In this Sustainable Asset Valuation (SAVi) assessment, an asset performance of the Kakono hydroplant is evaluated by:
- Integrating environmental and socio-economic costs and co-benefits (externalities) into the assessment
- Evaluating the performance impacts of different climate scenarios
- Comparing it to the performance of two hypothetical energy generation alternatives
The analysis could be used as a baseline to perform due diligence for grants, concessional lending and organizing “pay-for-performance” financing solutions, and could inform decisions on infrastructure planning, sustainable agriculture, climate adaptation and economic development.