Edenville Energy will construct a 100 megawatt coal-fired power station at its Tanzania-based Rukwa coal project. The new plant will supply energy directly to the country's new power grid, Mining Weekly reported.
The Tanzania government has also committed to building a new power transmission line between Mbeya and Sumbawanga, which is now slated for operation in 2016, much earlier than expected. The power line would pass near Rukwa and link existing and future power sources to the grid, the source said.
The government aims to increase installed generation capacity to 2,780 MW by 2015 - up from its current 1,438 MW - and supply an additional four million people with access to electricity.
Edenville has completed a scoping stay at Rukwa and determined it was "economically attractive" to build a power plant at the site. The study also indicated that it would be wise for the power plant to operate independently of the power grid, but Edenville chairperson Sally Schofield said the Western power line presented a new opportunity for the company.
"[T]he accelerated progress of the Western power line gives Edenville the opportunity to move towards development of a larger power station, using Edenville's entire coal resource, which would feed directly into the new grid infrastructure," she said.