The Mpale 50kW Solar Village Micro Grid Project is vital in increasing rural electrification which will directly and indirectly impact 3,000 people in Mpale village. The project serves as a demonstration platform with a massive potential for replication and scale up in other villages, in the region, and also in other parts of the country. The project will contribute toward the sustainable and inclusive development of Korogwe District and beyond, by generating important transformative impacts.

For UNCDF, it was important to demonstrate the development impact of this off grid renewable power plant (as opposed to diesel generated power plants) at this most remote and difficult to reach mountainous villages in Korogwe district. Once this first one is built, the local developer can demonstrate to local banks and other investors that there is proof of concept and a successful track record.

To serve rural and remote community with this kind of technology and solution, the developer must design a payment plan within the capacity of the community to pay. Considering the high investment costs and the lack of economies of scale (initially) to make such a project attractive to purely commercial financiers, there is a compelling need for development finance to subsidize catalytic development projects to prove concepts and demonstrate track record necessary for scale up.

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