The Tanzania Electricity Corporation (TANESCO) has entered into an agreement with six renewable energy producers to purchase 19.16 MW of electricity that will enter the national grid and be used in various parts of the country.
TANESCO will buy 10 MW from Kahama Solar Power Project, 5 MW from Kigoma Solar Power, 1.7MW from Madope Hydropower, MW 1.2 from Maguta Hydropower, 0.9 MW from Luponde Hydropower, and 0.36 MW from Energy Lutheran (DKK) Investment.
Speaking at the signing ceremony, TANESCO Senior Investment Manager, Engineer Costa Rubagumya said that “In accordance with the regulations governing the development of small-scale power generation projects, it requires TANESCO to enter into agreements with small-scale power producers in areas where the national grid has not yet arrived.”
He identified other parameters as areas that have a low power supply problem to improve the quality of electricity and another criterion is the areas of electricity distribution where TANESCO’s power lines are long thus causing power losses.
The six companies are required to start selling electricity to TANESCO within 18 months.
The Minister of Energy of Tanzania, Dr. Medard Kalemani, recently said that the current demand for electricity per day in the country is 1,177.20 MW and it is expected to more than double to 2,770 MW by 2023.
Currently, Tanzania’s total power installed capacity is 1,602 MW of which 244 MW were added in the past four years. Tanzania’s electricity generation comes mostly from natural gas (48%), followed by hydropower (31%), petrol (18%), solar (1%), and biofuels (1%).
Want to know more about Energy in Tanzania? Our free overview of the Tanzania Business and Investment Guide 2026 covers Energy, plus key sectors and investment opportunities. The complete 141-page edition includes policies, taxation, key regulations, full macroeconomic data, and sources.
Download Free OverviewGet the Full Guide
