An 87-megawatt hydropower project is currently being developed in northern Tanzania. Known as the Kakono Hydropower Project, it is being financed by the African Development Bank, which will be reviewing plans for financing the project early next year.
The valuation of the economic, environmental, and social externalities resulting from this project require best-in-class climate data, which is being provided by the Copernicus Climate Change Service (C3S). This C3S data will also provide vital insights into what climate-related risks this Kakono Hydropwer Project will face, and what it will mean for its financial performance over its life cycle.
The results of this assessment will inform not just the AfDB discussions on the Kakono project, but also future AfDB discussions on the financing of projects that have positive environmental impacts, relative to more traditional alternatives.
Our assessment will involve an integrated cost-benefit analysis of the project; a valuation of co-benefits, avoided costs, and societal costs; a demonstration of how climate risks will affect the project’s financial performance, derived from C3S data; and how sustainable assets perform in the energy sector in Tanzania, relative to diesel generators or other traditional technologies. It will also consider the hydropower project against the costs and benefits of a hypothetical solar powered project that can provide the same amount of electricity annually.