The African Development Bank (AfDB) approved on Friday 20 July 2018, a loan of USD 123.39 million to the Government of Tanzania to finance part…
Tanzania’s total power installed capacity is 1,605.86 MW (2021).
Tanzania also imports power from Uganda (10 MW), Zambia (5 MW), and Kenya (1 MW).
The traditional dependence on hydropower combined with the droughts that are affecting the country often results in power supply shortages.
To bridge the electricity supply gap in the country, TANESCO contracted Emergency Power Producers (EPP).
The average electricity consumption in Tanzania was 137 kWh/year in 2016. The Government’s vision entails Tanzania’s electricity consumption to reach 490kWh/capita by 2025.
Tanzania Power Production
Tanzania’s power resources include hydro, natural gas, coal, uranium, wind, geothermal, biomass, solar, tidal, and waves.
Currently (2021), Tanzania’s total grid installed capacity is 1,605.86 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.
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 System Master Plan
The Tanzanian Ministry of Energy and Minerals has issued its Power System Master Plan (PSMP) update 2016.
The Plan follows 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.
Sources: African Development Bank (AfDB), International Energy Agency (IEA), Tanzania Ministry of Energy and Minerals, Oxford Business Group, Rural Energy Agency (REA).
Last Update: 3rd June 2021
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Tanzania forecasts its annual power demand to increase by 71%, from 7,860 GWh in 2016 to 13,430 GWh in 2020.