Energy Sector

Electricity generation

The Tanzanian power sector suffers from shortfalls in energy supply and is characterised by low rural electrification rates. According to the country’s Power Supply Master Plan, which was updated in 2012, electricity demand will increase by at least 11.9% annually until 2030. The main drivers are general economic growth, the planned opening of major industrial companies and rural electrification. The government aims to achieve an electrification rate of 100% by 2030, with the addition of 8,990 MW of generating capacity by 2035.

Electricity production has been dominated to date by large hydro plants. However, their contribution to total supply has fallen dramatically in recent years due to extensive droughts in the country. This has forced the country’s electricity utility to undertake extensive load shedding, using thermal power plants for base load and emergency power installations at considerable cost.

 

Share of resources in electricity generation as of 2014 (national grid)

Tanzania-Shares

 

 

 

Tariff

Net tariffs effective from 1 January 2014, TZS (tariffs are subject to change)
Service charge/month Energy charge (per kWh) Maximum demand charge (kVA/month)
D-1 (low usage tariff, average < 75 kWh/month) 100

Above 75 kWh: 350

T-1 (general usage tariff) 5,520 306
T-2 (general consumption tariff, > 7,500 kWh/metering period) 14,233 205 15,004
T-3 (medium voltage) 16,769 163 13,200
T-4 (high voltage) 159 16,550

 

 

Transmission and distribution network

The electricity system in Tanzania comprises of the main grid, covering large urban centres and main routes, and several independent mini-grids (TANESCO and privately owned) in rural areas and townships far removed from the main grid. In addition, TANESCO imports power from Uganda and Zambia.

TANESCO, a vertically-integrated utility, owns the interconnection power grid. Its transmission system comprised of 43 substations. The power grid is built on 220 kV (2,732.36 km), 132 kV (1556.5 km) and 66 kV (580 km) lines. In some cases small power producers (SPPs) are responsible for managing isolated micro- and mini-grids. Several development projects are in place to extend and upgrade the transmission and distribution systems in order to cope with rising demand and supply, interconnect the isolated supply network, increase cross-border electricity trade with neighbouring countries and improve general system reliability. The Tanzania Five Year Development Plan 2011/12-2015/16 includes ten network projects worth a total of almost TZS 4 trillion.