A responsible developer and operator of coal assets to provide energy security to support regional growth and create wealth for its shareholders
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Coal provides 30% of global primary energy needs and generates 42% of the world’s electricity. Tanzania lacks reliable base load power and sufficient electricity generating and transmission capacity, which restricts industrialisation, development and the basic rights of the population to enjoy electrification.
Tanzania (population of 45 million) currently has an installed electricity capacity of approximately 1,190MW and available capacity of approximately 650MW. Historically in Tanzania, electricity generation has been sourced from hydro, diesel and natural gas – non base load and primarily available to densely populated, commercial and industrial areas. Coal can not only generate sufficient base load electricity to meet the needs of Tanzania, but can also create revenue from the export of electricity to neighbouring countries and provide substantial multiplier benefits in job creation, urbanisation and industrialisation.
The Tancoal mine is the only operating coal mine in Tanzania and is well positioned to play a dominant role in supplying coal as the primary fuel to power stations proposed for the region.
IEC is in discussion with major electricity users regarding a potential Independent Power Project (IPP). Pre-feasibility studies have commenced, engineering consultants have commenced grid studies and preliminary design work and costing estimates are currently being developed.
In March 2016, IEC announced that its partner Sinohydro Corporation Limited has completed its initial site investigations into the proposed 270MW Ngaka minemouth coal fired power station. This follows positive meetings with the Ministry of Mines and Energy and the Tanzanian Electricity Generating Authorit, with the Minister advising the Government would encourage the delevlelopment of coal-fired power generation in Tanzania.
IEC is in the prefeasibility stage of developing a minimum 120MW (net) coal fired power plant at Chipoka, Malawi by no later than end 2016 (named “Project Pamodzi”). The project scope includes the design, engineering, construction, operation and maintenance of the power plant and its ancillary infrastructure and IEC is considering potential expansion to 200MW (net) or doubling capacity with a second plant of 120MW.
Pamodzi will be developed as an independent power project (IPP), with IEC acting as the project sponsor. IEC is seeking African and international equity investors in the project.
In April 2016, IEC signed a term sheet relating to the power purchase agreement with Electricity Supply Corporation of Malawi ("ESCOM") following lenghty negotiations with the Malawi government.