MSc Thesis: Financial Modelling and Analysis of Power Project Finance: A Case Study of Ngozi Geothermal Power Project, Southwest Tanzania

Chagaka Kalimbia successfully defends his master's thesis


REYKJAVIK, APRIL 22 – After conducting his studies, Chagaka Kalimbia successfully defended his thesis where he performed a detailed financial and economic analysis for a 30 MW geothermal power project in Ngozi. Chagaka’s work was supervised by Páll Jensson from Reykjavík University.


The site selected is located in Southwest Tanzania in Ngozi. There is strong interest in Tanzania to develop geothermal energy, making an economic assessment valuable. Chagaka built a financial model to process input assumptions and identify Key Performance Indicators (KPI).

Potential stakeholders include lenders and sponsors. Government financing and corporate financing are both considered, and it was concluded that funding would be dependent on both with a heavier emphasis on corporate financing. Chagaka was able to show through his analysis that after four years of operation (the time required to switch over to commercialization) cash flow changes from negative to positive meaning the geothermal project is economically viable. Chagaka conducted a risk analysis showing that the indicators most sensitive to change were the price of electricity and energy production.

To read more about how one can make more use of geothermal data read more here.

Congratulations, Chagaka on an excellent thesis!


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