Kibo Mining (AIM:KIBO, JSE:KBO), a Tanzania focused mining company, recently announced that the Mbeya Coal to Power Project has reached a very advanced stage following…
Currently (2016), Tanzania’s total power installed capacity is 1,357.69 MW composed of hydro 566.79 MW (42%), natural gas 607 MW (45%) and liquid fuel 173.40 MW (13%).
Tanzania’s power sector contributed about 1% to the country’s GDP with TZS384b in 2015, compared to TZS297b in 2010, representing an increase of 29%.
According to the latest available data, Tanzania’s power sector recorded a growth rate of 7.1% in Q2 2016 thanks to an increase in the quantity of power generated from gas.
The generation, transmission and distribution of electricity in Tanzania is channeled through the Tanzania Electricity Supply Company (TANESCO), which is fully owned by the government and is responsible for 98% of the electricity produced in the country.
Tanzania Power Production
Tanzania’s power resources include hydro, natural gas, coal, uranium, wind, geothermal, biomass, solar, tidal and waves.
Currently (2016), Tanzania’s total grid installed capacity is 1,357.69 MW composed of hydro 566.79 MW (42%), natural gas 607 MW (45%) and liquid fuel 173.40 MW (13%).
Electricity generated from gas rose by 67%, from 566m kWh in Q2 2015 to 943m kWh in Q2 2016, while total electricity generation increased by 12.3%, from 1,559m kWh to 1,751m kWh.
In Q2 2016, gas powered electricity accounted for 55.7% of the production of electricity, while hydro accounted for 40.3% and thermal sources for 4%.
Tanzania also imports power from Uganda (10 MW), Zambia (5 MW) and Kenya (1MW).
The average electricity consumption per capita in Tanzania is 108kWh per year, compared to Sub-Saharan Africa’s average consumption of 550kWh per year, and 2,500kWh average world consumption per year.
However, the demand for electricity in Tanzania is estimated to be growing at 10–15% per year, with currently only 24% of the total population having access to electricity.
In order to meet this demand, the Government is planning to increase Tanzania’s generation capacity to 10,000 MW in 2025.
To achieve this goal, the Government of Tanzania has embarked on reforming the Electricity Supply Industry (ESI) mainly by attracting private capital in the industry.
Tanzania Power Sytem Master Plan
The Tanzanian Ministry of Energy and Mineral has issued its Power System Master Plan (PSMP) update 2016.
The Plan follow the previous PSMP of 2008 and the subsequent 2009 and 2012 updates.
The overall objective of the Plan is to re-assess short-term (2016 – 2020), mid-term (2021 – 2025) and long term (2026 – 2040), generation and transmission plans requirements and the need for connecting presently off-grid regions, options for power exchanges with neighboring countries, and increased supply of reliable power.
Under the new Plan, Tanzania hopes to triple its power generation output by 2020, and boost access to the national grid.
Tanzania forecasts its annual power demand to increase by 71%, from 7,860 GWh in 2016 to 13,430 GWh in 2020.
Tanzania’s total electricity generation rose by 10.1% in Q3 2016, from 1,550m kwh in 2015 to 1,706m kwh in 2016.
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