Tanzania Launch Investment Prospectus for Energy Sector

Tanzania officially launched its Sustainable Energy for All (SE4All) Action Agenda (AA) and Investment Prospectus (IP) on July 11th 2016.

In 2012, Tanzania joined SE4ALL, a global initiative, which aims to achieve universal energy access, improve energy efficiency, and increase the use of renewable energy.

Tanzania SE4ALL AA

The AA defines Tanzania’s 2030 targets of access to electricity and clean cooking solutions, as well as the priority actions required to be implemented to achieve these objectives.

Tanzania’s SE4ALL 2030 targets include:

• Population with electricity access in Tanzania >75%
• Population with access to modern cooking solutions >75%
• Rate of improvement in energy intensity of -2.6% per year
• Renewable energy share in power consumption >50%
• Renewable energy share in heat consumption >10%

Tanzania SE4ALL IP

The IP presents the investment opportunities that the Government of Tanzania would like to develop to achieve its SE4ALL objectives.

The Prospectus highlights investment opportunities in the energy sector of Tanzania in:

• Generation, transportation and distribution of energy from various sources;
• Power infrastructure development, rehabilitation and expansion;
• Extraction of biofuels, such as ethanol from sugar, biodiesel from palm oil and jathropha;
• Construction of petroleum pipelines and petroleum products offloading terminals, and development of upcountry storage and distribution facilities;
• Geothermal exploration and development;
• Rural electrification;
• Exploration of new and renewable energy resources;
• Promotion of energy efficiency and conservation initiatives

This detailed investment opportunities are presented in four groups:

1. Programme Investment Opportunities. This focuses on the immediate needs of MEM and the SE4ALL Secretariat in support of the implementation of the AA. The main point of contact for these opportunities is SE4ALL Country Focal Point (CFP) at MEM.
2. Project Investment Opportunities Associated to REA’s Prospectus. These are priority projects that require funding to close current gaps in the implementation of the Prospectus. The main point of contact for these opportunities is REA.
3. Project Investment Opportunities Associated to TANESCO’s Prospectus. These are primarily focused on on-grid power generation and grid infrastructure. The main points of contact for these opportunities are TANESCO, the National Development Corporation, or the Tanzanian Investment Centre.
4. Other Project Investment Opportunities.

Tanzania SE4ALL Phases

From July 2016, the AA and IP will be integrated into the Ministry of Energy and Minerals (MEM) Strategic Plan 2016–2020 for Tanzania.

The Tanzanian Government will also start a national dialogue with all stakeholders towards the adaptation, update and alignment of the existing initiatives with the country’s SE4ALL AA.

Therefore, all new strategies and initiatives will have to be consistent with Tanzania’s SE4ALL AA.

During 2020–2025, SE4ALL should become the cornerstone of the national mid-term planning process.

The AA will be reassessed on its progress and additional initiatives and IPs should be incorporated as needed.

Tanzania Electricity

In 2014 Tanzania installed power capacity was 1,583MW, of which 42% hydropower, 41% natural gas, and 17% diesel.

The average electricity consumption per capita in Tanzania is 108kWh per year, compared to Sub-Saharan Africa’s average consumption of 550kWh 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.