Background

Rift Valley Energy (RVE) is a rural renewable energy infrastructure platform, which develops, finances, owns and operates renewable energy generation assets and a rural power distribution network in Southern Tanzania.

RVE is currently operating two hydro powerplants of 4 MW and 1 MW, and a wind farm of 2.4 MW. In addition, RVE owns a distribution network that supplies power to 6,200 customers.

The platform also has a pipeline of additional projects to be built over the next 5 years to increase the overall generation capacity to at least 26 MW, of which 6 MW have already been awarded PPAs.

Stage

Financial close

ESG/SDG Key Facts

Meridiam E&S Due Diligence included the definition of an E&S Action Plan (ESAP) that is expected to be implemented upon completion of the transaction. The ESAP includes the following main items: (i) definition and implementation of an overarching E&S Management System at platform level to ensure full compliance of internal policies with IFC PS, (ii) review of existing ESIAs for projects in operation and in development, and adjustments of project-specific E&S Management Plans if needed and (iii) definition of internal standardized procedures and tools at the platform level to ensure full compliance of future projects with relevant standards.

In particular, the first actions were (i) the hiring of a full time ESG Manager, which has been completed in March 2023 in order to implement the ESAP, and take full ownership of the E&S risk management of the project, (ii) conducting additional biodiversity studies on aquatic life and avifauna on the project sites, and (iii) reviewing the hydrology studies to better assess the environmental flow (e-Flow) requirements of the projects. The hydrology study is ongoing and expected to be completed by Q2 2023, and the biodiversity advisor is currently being selected: his appointment may last 12 months in order to cover 2 full seasons.