Ruaha Power will build, own and operate the Malolo Mini-Grid, the first of four separate rural Mini-Grids, in order to generate, distribute, and sell electrical power directly to consumers at pre-payment meters.

Upon completion, the four Malolo Mini-Grids will have a combined generation capacity of 300kW, while each Mini-Grid will directly deliver 75kW of power to a combined total of approximately 2,500 identified residential, commercial, and light industrial customers, the company said.

The Mini-Grids are scheduled to be deployed in an area surrounding the village of Malolo and three nearby villages in the Kilosa District, Morogoro Region, Tanzania.

The Malolo Mini-Grid Phase-I development, which is due to begin power generation by the end of the first quarter of 2015, involves the installation of the first embedded generators, a 25kW hybrid biomass gasifier and a 25kW diesel generation plant.

A Phase-II development will add solar PV capacity to complete a hybrid biomass/solar PV/diesel powered Mini-Grid.

The Phase-I and Phase-II development will be duplicated at each of the other three villages, one after the other, upon completion of Phase-II of the first network.