IEEJ：July 2017 © IEEJ2017

COUNTRY REPORT
To be Presented at the Knowledge Co-creation
Program in Japan on “Energy Policy (B)”,Tokyo 28th June – 29th July, 2017
By

Eng. Salum Mandu Inegeja
Ag. Assistant Commissioner for Electricity,
Ministry of Energy and Minerals, Tanzania

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PRESENTATION OUTLINE
1.

GENERAL INFORMATION
1.1 COUNTRY PROFILE
1.2 ECONOMIC INDICATORS
2. ENERGY RESERVES
3. CURRENT ENERGY POLICY AND MEASURES
4. PAST ENERGY DEMAND AND SUPPY
4.1 ENERGY DEMAND BY SECTOR
4.2 ENERGY PRICES5. OUTLOOK OF ENERGY DEMAND
6. ENERGY RELATED INVESTMENT FOR DOMESTIC ANDOVERSEAS
7. DIFFICULT OF BOTTLENECK OF FORMULATING ENERGYPOLICIES
8. SUBJECTS OF INTEREST FROM KCCPIEEJ：July 2017 © IEEJ2017

GENERAL INFORMATION - LOCATION
United Republic of Tanzania

Africa ContinentIEEJ：July 2017 © IEEJ2017

COUNTRY PFOFILEi.
ii.
iii.
iv.

Population: 50.1 million (2016), growth rate 2.7%; Total area of 945,087 sq.km.
Language:(Swahili and English ),Dodoma is the capital city and Dar es Salaam is the major commercial city
Natural resources: tin, phosphates, iron ore, coal, diamonds, gemstones, gold,
natural gas, nickel.
v. Agriculture products: Coffee, sisal, tea, cotton, pyrethrum (organic insecticide),
cashew nuts, tobacco, cassava (tapioca), bananas, fruits, vegetables; livestock.
vi. Industries: Agricultural processing (sugar, beer, cigarettes, sisal twine); diamond,gold, and iron mining, oil refining.
vii. Exports - commodities: gold, coffee, cashew nuts, manufactures, cotton.
Exports partners: India, 21.4%, China 8.1%, Japan 5.1%, Kenya 4.6%, Belgium
4.3% (2015)
viii. Imports - commodities: consumer goods, machinery and transportationequipment, industrial raw materials, crude oil
ix. Currency : Tanzanian Shilling (TZS)
x. Mt. Kilimanjaro (“Roof of Africa”), which is highest mountain in Africa, (5,895m) is
found in Tanzania

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COUNTRY PFOFILE CONT’…
i. The installed capacity in the main grid is 1451MW.
Hydro: 567.11 MW (41.5%) and Thermal (natural gas, dieseland Heavy Fuel Oil): 788.4 MW (57.7%)
i. On- grid (1,366 MW) while Off-grid stations (84,906 MW)
ii. Biomass 10.5 MW. (0.7%)
iii.Highest grid system demand is 1,051.27 MW. (Feb, 2017)
iv. Customer base (TANESCO) is 1,951,730 (December, 2016)v. Access to electricity increased from 23% to 67.5% andconnectivity from 17% to 32.8% from 2011 to 2016
respectively (Source: National Bureau of Statistics,-NBS
December, 2016)

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ECONOMIC INDICATORSIEEJ：July 2017 © IEEJ2017

ENERGY CONSUMPTION AND RESERVES
Primary Energy consumption

Energy Potential
 Hydro: 4.7 GW (only 12% developed ) Gas: 43.1 Trillion Cubic Feet of provenreserves.

 Coal: 1.2 billion tones of which 304
million tones are proven.
 Geothermal: Estimated 650 MW,
assessment is under way
 Others: Petroleum and Uranium:
Prospecting activities on-going.

 Renewable energies is under study

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CURRENT ELECTRICITY INDUSTRY STRUCTURE
Theelectricity
supplyindustry in is dominated byTANESCO, which is avertically integrated state
owned utility. TANESCOowns and carries out
generation,transmission
and distribution of electricity
up to the final consumers,
and sells electricity in bulk
toZanzibar
ElectricCompany (ZECO) throughsubmarine cables 132kV
and 33kV to Zanzibar andPemba Islands respectively.
On the generation side
there are other players
which include Independent
Power Producers (IPPs),
Small Power Producers(SPPs) and Emergency
Power Producers (EPPsIEEJ：July 2017 © IEEJ2017

Electricity price: 2016: Adopted Pan-territorial tariff setting

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ENERGY CONSUMPTION BY SECTORIEEJ：July 2017 © IEEJ2017

CURRENT ENERGY POLICY AND MEASURES
i. The National Energy Policy, 2015 to guide the sustainable
development of the Energy Sector; This policy resulted frommerging of several policies: the Petroleum Policy, the Local Content
Policy, the Subsidy Policy, the Natural Gas Policy, the Renewable
Energy Policy, the Bio-energy Policy and the Revised 2003 National
Energy Policy to simplify its administrations.
ii. Electricity Supply Industry Reform Strategy and Roadmap 20142025;
iii. Electricity Act, 2008 to attract substantial private sector
participation in the development of the electricity subsector;
iv. Petroleum Act, 2015 to guide the development of the petroleum
sub-sector;
v. REA Act, 2005 became in operational in 2007 purposely forfurthering rural electrification;
vi. Ruling Party, Chama cha Mapinduzi (CCM) Manifesto 2015 -2025.

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FUTURE OUTLOOKIEEJ：July 2017 © IEEJ2017

FUTURE OUTLOOK CONT’i.

To have at least generation capacity of 10,000MW by2025 through system expansion, market restructuring
and operation excellency
ii. Increased contribution of Renewable Energies toenergy mix to a tune of 5% in 2040. Power System
Master Plan (PSMP) 2016 Updates recommended:
Natural gas = 40%; Coal = 35%; Hydro = 20%; andRenewable = 5%iii. Human capital development for oil and gas industry
parallel with strengthening of Tanzanian high learning
institution to carry out the task
iv. Developing gas-based industries

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ENERGY RELATED INVESTMENT FORDOMESTIC AND OVERSEAS
i. Electricity Sub-sector: Investment in generation, transmission anddistribution networks is promoted under private investment or
through PPP. Focus is on improving generation mix by increasing
renewable energies and coal fired power plants contributions.
ii. Petroleum Sub-sector: Exploration activities for oil and gas arebeing promoted. In addition, infrastructure development such atransportation pipeline from Dar es Salaam to Central, Southernand Northern Corridors; Mtwara, Lindi, Pwani and Dar es Salaamregions gas distribution infrastructures and LNG and Petrochemical
facilitiesiii. Renewable Energy Sub-sector: Development of Renewableenergies mainly from solar, geothermal, wind and biomass ispromoted as well as Investment in the manufacturing of renewableenergies equipment.

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DIFFICULT OR BOTTLENECK OFFORMULATING ENERGY POLICIESi.

Rapid growth of energy sector which provide
challenge in reviewing /formulation of energy
policies in timeii.

Lack of proper information/ statistical data to justly
the need of policies review/formulationiii. Political interference (political interest)
iv. Inadequate fund to implement Energy Sector
reforms

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FORMULATING ENERGY POLICIES CONT’…
v.

Inadequate and untimely financing of priority energy
projects from government budget

vi. Limited involvement of local communities and otherstakeholders in policies reviewing/ formulation process
vii. Managing expectations and reconciling conflicting
views of stakeholders within the overall nationalinterest

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SUBJECTS OF INTEREST FROM KCCPi.

Energy Supply and Demand Forecasting
techniques

ii.

Knowledge of formulation of Energy Database(Energy Balance Table)iii. Quantifying energy policies information tofacilitate monitoring and evaluation of results

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FOR FURTHER INFORMATION
For further information, PLEASE VISIT:
1.National Bureau of Statistics, (NBS), www.nbs.go.tz2.Tanzania Investment Centre (TIC), www.tic.co.tz

3.Ministry of Energy and Minerals, (MEM) www.mem.go.tz
4. Energy and Water
www.ewura.go.tz

Utilities

Regulatory

Authority(EWURA),

5.Tanzania Electric Supply Company Ltd (TANESCO), www.tanesco.co.tz
6.Tanzania Petroleum Development Corporation (TPDC), www.tpdc-tz.com
7.Rural Energy Agency, (REA ), www.rea.go.tz

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