TANZANIA: Zanzibar Readiness for Renewable Energy and Storage Development

In collaboration with the Energy GP, PPIAF funded an activity to foster private sector participation in renewable energy generation, storage, and distribution in Zanzibar. The goal was to assist the Zanzibar Electricity Corporation (ZECO) in understanding the complex technical, economic, regulatory, commercial, and financial aspects involved in integrating variable renewable energy (VRE) technologies through PPPs. The activity also explored the role of battery storage systems in ensuring the uninterrupted operation of renewable energy facilities.The initiative included three components: grid integration analysis, a commerical, operational, and regulatory assessment, and capacity building for local stakeholders in VRE integration planning, project financing, and operations. The analysis showed the potential for substantial increases in investment in solar photovoltaic and batter energy storage systems over the next decade. Based on these findings, ZECO, with World Bank support, plans to engage a transaction advisor to establish an appropriate policy framework to facilitate the expansion of renewable energy projects with private sector participation.This marks a significant step towards Zanzibar's sustainable development and a renewable energy future.