Tanzania Electricity Supply Industry Reform Strategy and Roadmap 2014/25

 

Introduction:

Electricity Demand and Supply Situational Analysis

Tanzania is endowed with diverse forms of energy resources including natural gas, hydro, coal, biomass, geothermal, solar, wind and uranium which have not been optimally utilised. As of May 2014, Tanzania’s total installed generation capacity was 1,583 MW composed of hydro 561 MW (35 percent), natural gas power plants of 527 MW (34 percent) and liquid fuel power plants of 495 MW (31 percent). TANESCO also imports power Uganda (10 MW), Zambia (5 MW) and Kenya (1MW). Due to traditional dependence on hydropower, the droughts that occurred in 2010 resulted in power supply shortages in the country. To bridge the electricity supply gap in the country, in 2011, TANESCO contracted Emergency Power Producers (EPP) which is relatively expensive.

About 24 percent of the Mainland Tanzanian population is connected with electricity services of which 7 percent is in rural areas. Demand for electricity is on average growing between 10 percent and 15 percent per annum. To achieve the desired socio-economic transformation, Tanzania aims to increase connection levels to 30 percent by 2015, 50 percent by 2025 and more than 75 percent by 2033. This requires significant investment in generation, transmission and distribution systems. The main objective of the reforms is to improve the ESI governance and performance for sustainable socio-economic transformation and environment protection anchored on active participation of the private sector.

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