IEEJ : July 2011

THE UNITED REPUBLIC OF TANZANIAMINISTRY OF ENERGY AND MINERALSTANZANIA – ENERGY SECTOR
Presented atJICA, TokyoJuly, 20111IEEJ : July 2011

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LOCATION & GENERAL INFORMATIONSTATUS OF THE ENERGY CONSUMPTIONS IN TANZANIANATIONAL GRID SYSTEMLOCAL ENERGY RESOURCES
GRID INSTALLED CAPACITIESOFF GRID INSTALLED CAPACITIESKEY ENERGY PLAYERS IN THE SECTORSTRATEGIESCHALLENGESSUBJECTS OF INTEREST2IEEJ : July 2011

LOCATION AND GENERAL INFORMATION• 42 mil people• Total area 945,234 km2• 80% live in rural areas• Swahili is the national language• Agriculture =>½ of GDP• Mining gold, diamond,tanzanite,natural gas• Wildlife & Tourism: 12 nationalparks, 13 game reserves• GDP per capita, USD 523• GDP Growth rate = 7%
•Mount Kilimanjaro, 5892m high3

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STATUS OF THE ENERGY CONSUMPTION IN
TANZANIA Estimated national energy
consumption is 22 Million tonnes
oil equivalent per annum (2009)
 Biomass fuels (i.e. wood andcharcoal) account for over 90% ofprimary energy supply

Petroleum 8%
 Electricity 1.2%
Solar and wind <1% of primaryenergyFinal Energy Supply
Petroleum8%ElectricityOthers(includingwind,1.2%solar, etc)

<1%Biomass90%4

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STATUS CONT. (Demand and Supply)
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Growth in Power demand is 10 -15% per annum
14.2% of Population has access to electricity (2% rural areas)
Total grid installation capacity is 1,051MW (2010)
Hydro contributes 561 MW (53%). 490MW thermal (47%)
Independent Power Producers (IPP’s) (Songas and IPTL)
contribute 289 MW (30%) of the available power in the gridCo-generation (Sugar & Wood, paper processing Plants)
accounts for: 35.8 MW
Average connections per annum is 50,000 customers(plan 100,000 customers/annum)
Average power generation 700 MW
Peak power demand 802 MW
CUSTOMERS connected were: 868,953 (2010)5

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LOCAL ENERGY RESOURCES
1. Hydropower:

PotentialDeveloped-4,780 MW
561MW (12%)

2. Natural gas:

7.5 Trillion Cubic Feet (Proven)

3.Coal:Potential 2 Billion tonnes; of which
304 Million tonnes are proven

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LOCAL ENERGY RESOURCES CONT.
4. Biomass:

5. Solar:
6. Wind:7. Geothermal:
8. Others:

Tanzania has a forest area of about 35.5
million hectares of which around 80,000
hectares are plantation forest and 70,000
hectares are privately owned
Average solar installation is > 200 Wp/m2
Speed variable but speeds greater
8m/s are documented
Potential as high as 650MW. Underassessment
Studies on: Uranium, bio fuels, andocean based energies are going on.
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GRID INSTALLED CAPACITIESSTATIONENERGY
SOURCES/OWNERSHIP

No. UNITS

INSTALLED CAPACITY (MW)KIDATU4204Hydro/TANESCOKIHANSI

3180

Hydro/TANESCO

MTERA280Hydro/TANESCO

N/P FALLS

268Hydro/TANESCO

HALE

221Hydro/TANESCONYUMBA YA MUNGU

28Hydro/TANESCO

Sub total
IMPORT FROM SONGAS

561
UGT1_UGT6189Gas/IPP

102

Gas/TANESCO

100

HFO/IPPDIESEL

54

Diesel/TANESCOTEGETA GAS PLANT

45Gas/TANESCO

Sub total

490

TOTAL

1051

UBUNGO GAS PLANT
IMPORT FROM IPTL

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OFF-GRID INSTALLED CAPACITIESSTATION

INSTALLED CAPACITY (MW)ENERGY SOURCES

Geita Gold Mining

35Diesel

Mbingu Sister’s Convent

0.85

Hydro

St. Agnes Sister’ Convent– Chipole
Tanganyika Wattle Co. Ltd –TANWAT

0.4

Hydro

2.75

Biomass (wattle)

Artumas Group & (Partners) Power

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Gas

Alstom Power Rental (APR)

40

Gas

Mtibwa Sugar Estate Ltd

4

Co-generation (bagasse)

Kiwira Coal Mines Ltd.

6Coal

Tanganyika Planting Corporation

20

Co-generation (bagasse)

Kilombero Sugar Company Ltd

10.6

Co-generation (bagasse)

Kagera Sugar Estate Ltd

5Co-generation (bagasse)

Tanzania Sisal Board

0.5

Biomass (Sisal waste)

TOTAL

143.1010IEEJ : July 2011

KEY PLAYERS IN THE ENERGY SECTOR
Energy Policy & Measures Ministry of Energy and Minerals (MEM)

Oversees and provides policy directives in development of Energyand Minerals resources in the country
 Tanzania Electric Supply Company Ltd (TANESCO)

Its core business is generation, transmission, distribution and sale ofelectricity

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KEY PLAYERS CONT.
 Energy and Water Utilities Regulatory Authority (EWURA)

Became operational in 2006 with the role for ensuring regulatory
oversight and promotion of private sector investment in the energy
sector Rural Energy Agency (REA)

Became operational in 2007 purposely for furthering ruralelectrification programs via the Rural Energy Fund (REF) by: Facilitating modern rural energy project promoting modern rural energy services
 Providing technical assistance to developers
 Projects monitoring and evaluation

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STRATEGIES National Energy Policy 2003 aims to ensure availability of affordable andreliable energy supplies and their use in a rational manner;
 The Electricity Act. 2008 attracts substantial private sector participationin the development of the power sector;
 The Government is committed to restructure the Electricity Supply
Industry in line with the guidance provided under the Power Sector
Reform Strategy in order to support entry of the private sector,
participate in regional electricity trading and enhance the sector’soperational efficiency;

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STRATEGIES CONT.
The regulator (Energy and Water Utilities Regulatory Authority-EWURA) : Ensures regulatory oversight and promotion of privatesector investment in the energy sector

The New Power System Master Plan (PSMP) was finalized inOctober, 2008 and updated 2009 to guide the least - costdevelopment of the power sector in order to meet the short to long term electricity demandRural Energy Agency (REA) became operational in 2007 purposelyfor promoting and facilitating private sector investment in rural energy.

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CHALLENGES
 Limited flow of private capital investment in the power sector;
 Scarcity of resources allocated to the sector from the Government

Budget; Limited long-term financing especially for small / isolated rural energy

projects so as to reach the 80% rural households
 To sustain and increase oil and gas exploration through promotion ofprivate sector participation
 The national grid network is not interconnected with neighbor's gridnetworks;

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Subjects of Interest
 Energy demand and supply forecasting Energy Balance and Energy Mix Methods
 Policy Formulation and Review Process Strategizing and Monitoring Operationalization of the Policy

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Arigato gozaimasu..

Contact : report@tky.ieej.or.jp 17