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 (i) a short-term pipeline of additional projects to increase the platform capacity to at least 20 MW by 2025, of which 6 MW have already been awarded PPAs; and (ii) a long-term pipeline of 10 MW on 4 identified hydropower and wind projects.

Stage:

Financial close

ESG/SDG Key Facts

Meridiam E&S acquisition Due Diligence included the definition of an E&S Action Plan (ESAP), now being implemented. This ESAP results from an initial gap assessment against IFC Performance Standard. The ESAP includes the following main items:
(i) definition and implementation of an overarching E&S Management System at platform level to ensure compliance of internal policies with IFC Performance Standards, (ii) review of existing Environmental and Social Impact Assessments (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 platform level to ensure compliance of future projects with relevant standards.

This action plan is to be replaced by a simplified ESAP agreed with BII as part of the refinancing process.
As part of the ESAP implementation, an ESG Manager was hired in March 2023, and has been leading the process of definition and implementation of revised E&S management procedures and policies. Moreover, a revised hydrology study was completed, inclusive of a climate risk assessment. This study confirmed the level of resources expected in the initial feasibility study.

Additional biodiversity studies have been conducted in 2024 to complete the initial screening made before the acquisition. These additional studies confirmed the absence of red flag and critical habitat on assets in operation. Initial biodiversity action plans of each project will be adjusted to take into account the outcomes of this review.