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IEEJ : June 2012THE UNITED REPUBLIC OF TANZANIAMINISTRY OF ENERGY AND MINERALSENERGY SECTOR CONTEXT
Presentedby Oscar J. Kashaigili(Economist - Energy Development)
June, 20121IEEJ: August 2012 All Right Reserved

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COUNTRY PROFILE
ENERGY POLICY & MEASURES
ENERGY CONSUMPTION & SUPPLY PATTERNLOCAL ENERGY POTENTIALSNATIONAL GRID AND OFF GRID INSTALLED CAPACITIESENERGY DEMAND AND SUPPLY OUTLOOKSCHALLENGES FACED IN FORMULATING ENERGY POLICYSUBJECTS OF INTEREST2

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COUNTRY PROFILE3

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COUNTRY PROFILE Continues
 LOCATED IN EAST AFRICA (long. 290 and 410 East, Latit.10 and 120 South)
BORDERD WITH ‐Kenya and Uganda(North), West- With Rwanda,
Burundi and Democratic Republic of Congo, SouthZambia, Malawi and Mozambique and the Indian
Ocean to the East TOTAL AREA 945,234 km2
 POP. OF 42 MIL. PEOPLE (2010 est.)

 80% OF POP LIVE IN RURAL AREAS
 OFFICIAL LANGUAGES‐ SWAHILI AND ENGLISH
 AGRICULTURE CONTRIBUTE >½ OF GDP

 NATURAL RESOURCES:MINING ‐ Gold, Diamond,Tanzanite, Various other gemstones,Naturalgas, Iron ore and Coal.
WILDLIFE & TOURISM ‐ 12 National Parks, 13 Game reserves, 38 Game
4Controlled Areas and 120 National Cultural Heritage Sites.

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COUNTRY PROFILE Continues
 GDP PER CAPITA, USD 524 (2010 EST) GDP GROWTH RATE = 4.9%
 HIGHEST MOUNT IN AFRICA – KILIMANJARO (5892m or 19,341 feet) abovesea level THE COUNTRY IS A UNITED REPUBLIC, BETWEEN TANZANIA MAINLAND(TANGANYIKA) AND ZANZIBAR TANZANIA IS A MULTICULTURAL SOCIETY WITH 120 TRIBES POLITICAL STRUCTURE
Multi party political system/democracy.

 The President of Tanzania is both head of state and head ofgovernment.
 Executive power is exercised by the government.
 Legislative power is vested in both the government andparliament.
 The Judiciary is independent of the executive power and thelegislature.

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ENERGY POLICY & MEASURESo 1ST NATIONAL ENERGY POLICY ‐ 1992 AND REVISED IN 2003.
o The National Energy Policy of 2003 govern the Energy sector
o VISION: effectively contribute to the growth of the national economyand thereby improve the standard of living for the entire
nation in a sustainable and environmentally sound manner.
o MISSION: to create the conditions for the provision of safe,reliable, efficient, cost-effective and environmentally
appropriate energy services to all sectors on asustainable basis.
o POLICY OBJECTIVES: The national energy policy objectives are toensure availability of reliable and affordable energy
supplies and their use in a rational and sustainable
manner in order to support national development goals.
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ENERGY CONSUMPTION & SUPPLY PATTERN Estimated national energy

consumption is 22 Million tonnes
oil equivalent per annum (2009) Low per capita consumption ofModern Energy (Electricity andPetroleum) Biomass fuels (i.e. wood andcharcoal and agricultural andanimal residues) account for over
90% of primary energy supply

Oil and Gas 8%
Electricity 1.5%
Solar and wind <1% ofprimary energy

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CONSUMPTION & SUPPLY PATTERN-Continues
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Growth in Power demand is 10 -15% per annum
About 18% of Population has access to electricity
the per capita electricity consumption is 81/KWh per annum growing
at the rate of 11 - 13 %Total grid installation grid capacity is 1370.4 MW (2012)
Hydro contributes 561 MW Diesel and Gas 742.9MW, Interconnector
14MW and Cogeneration 12.5MW
Co-generation (Sugar & Wood, paper processing Plants)
accounts for: 43 MW
Average connections per annum is 50,000 customers(plan 100,000 customers/annum)Average power generation approximately 700 MW
Peak power demand 833 MW
Customers connected 868,953 (2010)8IEEJ: August 2012 All Right Reserved

LOCAL ENERGY POTENTIALS
1. Hydropower: 4.7 GW or 3.2 GW – firm capacity.
Developed 561MW equivalent to 12%.
2. Coal:Potential 1.9 Billion tonnes; of which 304 Million
tonnes are proven
3. Natural gas: 7.5 Trillion Cubic Feet (Proven)
4. Biomass:
Tanzania has a forest area of about 35.5 million
hectares of which around 80,000 hectares areplantation forest and 70,000 hectares are privatelyowned
5. Solar:
Average solar installation is > 200 Wp/m2
6. Wind:
Speed variable but speeds greater
8m/s are documented
7. Geothermal:
Potential as high as 650MW. Underassessment
8. Others studies on: Uranium, bio fuels, and ocean basedenergies studies are going on.
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GRID & OFF-GRID INSTALLED CAPACITIESGRIDENERGY SOURCESINSTALLEDCAPACITY(MWENERGY SOURCESINSTALLED CAPACITY(MW)

Diesel

35

782.9

Gas18

Hydro

561

Hydro

1.25

Interconnector

14Interconnector-Coal-

Coal6Biomass (wattle)

12.5

2.75

Co-generation (bagasse)-Biomass (wattle)
Co-generation(bagasse)

Biomass (Sisal waste)-Biomass (Sisal waste)

0.5

1370.4TOTAL

103.10(Thermal) Diesel & Gas

TOTAL

39.6

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ENERGY DEMAND AND SUPPLY OUTLOOKSo Petroleum Import demand and Supply – 1.7 to
1.8 million metric tons annually.
o Tanzania Power System Master Plan (PSMP) gives
an outlook of the Electricity Subsector. (gives

detailed assessment of load demand projections, available
options for meeting the demand and requirements for a newhigher voltage backbone transmission system for the country).
o Recent Update reflects changed economic conditions in Tanzania,driven by government policy guidelines. These includes, theTanzania VISION-2025, the Mini-Tiger plan, the Five Year
Development Plan (FYDP), and the 2003 Policy documents
all target to have an accelerated economic growth in the range of8%-15%,
o The FYDP targets to improve key infrastructure networks,
including power infrastructures to attain low cost energy service
that will allow more inflow of foreign direct investment (FDIs) toTanzania and to increase per capita electricity consumption fromcurrent 81kWh to 200kWh.
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ENERGY DEMAND AND SUPPLY OUTL. Cont…

o Energy (electricity) Needs Assessment fromthe PSMP (key results of the energy needs assessment basedon assumptions and approaches used in the forecast study)

National

2010

2010

TotalsActualUn‐Constr.

Grid Sales – GWh

4,034

Losses(Tx,Dx, Loadshed) – GWh

2015

2020

2025

4,174

8,473

14,12720,087

1,410

1,992

3,233

4,546

Net Generation – GWh4,175

5,585

10,465

17,36024,633

Coincidental Peak – MW

832.6

1,024

1,712

2,859

4,067
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CHALLENGES FACED IN FORMULATING ENERGYPOLICY High speed of the sector growth Low human capacity in Policy development
 Limited flow of private capital investment in the power
sector resulting to failure to reach the government
strategies as stipulated in the energy policy;
 Scarcity of resources allocated to the sector from theGovernment Budget to implement the initiated plan inthe sector referred as Policy failure; Limited long-term financing especially forsmall/isolated rural energy projects so as to reach
80% of rural households.

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SUBJECTS OF INTEREST Energy Policy Formulation and Review process.
 Linkage of Modeling of Energy Resources and Energy
Policy Analysis.
 Each Energy Subsector (Electricity, Renewable, Gas andPetroleum Products) having its own Policy.(How many
Energy Policy should be in Energy Sector)
 Strategizing and Monitoring operationalization of thePolicy Energy demand and supply forecasting Energy Balance and Energy Mix Methods14

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AKHSANTE SANA

Contact : report@tky.ieej.or.jp 15