hydropower and coal are the major sources of commercial energy in the country.
The biomass energy resource, which comprises fuel-wood and charcoal from both
natural forest and plantations, accounts for 93 per cent of total energy
consumption in the country.
subsector is largely dominated by a state owned enterprise, Tanzania Electric
Supply Company Limited (TANESCO) which has a vertically integrated monopoly in
the generation and supply of electricity in Tanzania. Power generation is
largely hydro-based with three main stations: Mtera, Kidatu, and Kihansi linked
together through the national grid.
Potential Hydropower Sites
* To be
review under the East Africa Master Plan Study
With a current
growth rate between 7 – 9 p.a, energy demand is expected to reach 4000 GWh
with a peak demand of 700 MW by the year 2003. It is expected that the mining
sector will contribute significantly to this demand growth. Electricity energy
consumption represents about 1.2 percent of total energy consumption in which
commercial and industrial users account for 33.3 percent of total electricity
By 1999 installed
generating capacity on the connected transmission grid amounted to 637 MW
including 60 MW from Kihansi hydropower station. Unconnected generating capacity
amounted to 28.7 MW. Of the total installed capacity, 435 MW is supplied by
hydro and the rest by thermal system.
to increase power generation through attracting investment in the energy
sector, the Government in 1992, changed its policy stand to allow
private participation in generation. Following the policy change two
independent power producers (IPPs) have been licensed, namely,
Independent Power Tanzania Limited (IPTL) and Songas Limited. The Songo
Songo project will utilise natural gas from Kilwa District, Lindi Region
to generate 112 MW. The estimated completion date for the project is
electricity sub-sector is administered under the Electricity Ordinance
Cap. 131 of 1957 and will be regulated by the Energy and Water
Regulatory Authority (EWURA) whose bill of establishment was passed by
the Parliament on April, 2001
with Neighbouring Countries
African Power Master Plan is being developed under the auspices of the
Secretariat of the East African Community. A study of the East African
Power systems have been proposed by the three partner states.
A study on the Tanzania
– Zambia interconnection recommended construction of a 670km of 330kV
transmission line from Pensulo in Zambia to Mbeya in Tanzania and
330/220kV step down facilities.
- Restructuring of Tanesco is
expected to involve unbundling the company into generation, transmission and
distribution entities before inviting private investors to participate,
depending on the divestiture strategy adopted by the Government.
- The private sector is invited
to particitipate in developing power generating projects. The only private
investors to take the opportunity so far are Independent Power Tanzania
Limited (IPTL) and Songas Limited.
- Tanzania has abundant untapped
energy resources, some of which could be exploited for electricity
generation. Coal reserves are estimated at about 1200mn tons of which 304mn
tones are proven. Natural gas is estimated at 44.02bn cubic meters of proven
reserves. Hydroelectric energy has a potential of installed capacity of 4.7
GW of which only about 10% is developed.
- Solar, wind and geothermal
sources, remain virtually untapped. Very little attempt has been made to
utilize this source of energy, which could be a viable alternative source to
reduce the use of wood and oil for heating purposes. These energy sources
require low investment capital compared to hydroelectricity generation.
- Tanzania has a per capital
electricity consumption of 46/KWh per annum, which is growing at the rate of
11 - 13 per cent. Hence the government is encouraging investment to expand
generating capacity, distribution system and developing indigenous sources
- There are other indigenous
alternative sources of energy such as coal. Tanzania has 1200m tons, which
could provide energy for paper mills, cement factories, agriculture and
household consumption, and generation of power.
The Government is in the
process of establishing a Rural Energy Agency with the responsibilities
of facilitating increased availability of energy services in rural
areas, supporting R&D in rural areas, creating an institutional and
legal framework to promote the application of renewable energy and to
promote entrepreneurship and private involvement in the marketing of
renewable energy in the rural sector.