Tanzania - Energy Tanzania Energy
The continued development of Tanzania’s energy sector is critical to the country’s ability to grow economically, attract FDI and expand its commercial ties regionally and globally. Tanzania has an installed generation capacity of 1,513 MW, or 0.033 kW per capita. Electricity demand in the country is increasing rapidly mainly due to foreign investments and an increasing population. The 2016 Energy Access Situation Survey collected information on connectivity of electricity to the main dwelling of the household. The results show that, overall, 32.8 percent of the households in the Tanzania Mainland were connected to electricity by 2016. Currently, power demand growth is between 10-15% per year.
In 2015, the Government of Tanzania’s (GOT’s) Big Results Now (BRN) phased out high cost emergency power plants (EPP) and increased generation capacity. The GOT is committed to reform the public utility’s (TANESCO’s) operations, and meet new demand through low-cost solutions, such as developing new gas resources and mini and off-grid renewable opportunities. Recent gas discoveries have quadrupled Tanzania’s known resources. A new gas pipeline, necessary for new gas generation from southern Tanzania to Dar es Salaam was completed in late 2015. Previously, the country relied on hydropower, expensive thermal and emergency generation sources that utilize diesel, heavy fuel oil or jet fuel. Today however, natural gas comprises approximately 58% of Tanzania’s electricity generation mix. Tanzania has made progress by entering agreements with independent power producers, who bring know-how and technology, and establishing feed-in tariffs for projects under 10 MW that provide many of the commercial terms that would otherwise delay negotiations on power purchase agreements (PPAs). The government is publicly committed to improving the power utility’s (TANESCO) viability through tariff reform allowing for full cost-recovery and operational improvements to the management of the utility.
Additionally, the government is also encouraging investments to increase available generation, further expand electricity access, reform the distribution system, and develop new indigenous sources of energy. The Public Private Partnership (PPP) Act of 2010 and the Private Partnership Regulations passed in 2011 were enacted to support private sector investment under PPPs. The government’s long term vision aims at increasing connectivity from 30% to 50% by 2025; increasing power generation capacity to at least 5,000 MW by 2020; diversify energy sources for power generation; reduce system losses; and promote regional grid interconnectivity.
| 5 Year General Expansion Plan | Actual | Planned | ||||
| 2016 | 2017 | 2018 | 2019 | 2020 | Total | |
| Natural Gas | 150 | 185 | 450 | 1,440 | 600 | 2,825 |
| Coal | - | - | - | 1,000 | 700 | 1,700 |
| Wind | - | 50 | 75 | 100 | 125 | 350 |
| Hydro (>10 MW) | - | - | 30 | - | 252 | 282 |
| Small Hydro (<10 MW) | - | - | 10 | - | 10 | 20 |
| Solar & Other Renewables | - | - | - | 200 | 50 | 250 |
| Regional Imports | 200 | 200 | 400 | |||
| Cumulative Additions | 150 | 235 | 565 | 2,940 | 1,937 | 5,827 |
Source: http://www.tanesco.co.tz/index.php/media1/downloads/reports
Generation:
Total installed capacity in the Main Grid System amounted to 1366.60 MW as of June 2017. The system is a hydro-thermal mix, constituting hydro 567.70 MW (41.54 %), Thermal plants (Natural gas) power plants 615 MW (45.0 %), Liquid Fuel 173.4MW (12.69%) and Biomass 10.50 MW (0.77%) mainly from IPPs. The Main Grid System demand from January to June 2017 was 1051.27 MW as recorded on February 14, 2017 at 21:00hrs. The highest grid system demands of 2016 was 1041.63MW recorded on October 20, 2016 at 20:00hrs. The transmission system losses recorded in 2012, 2013, 2014 2015 and 2016 were 6.12%, 6.2%, and 6.13%, 6.21% and 6.15% respectively. From January to June 2017, transmission losses were 5.92%.
Tanzania’s short term plans are to increase the electricity capacity to 5,000 MW by 2020 while the long term plans forecast capacity up to 10,000 MW by 2025.
Transmission and Distribution:
As of May 2017, Tanzania’s transmission system comprises of fifty (50) Substations interconnected by transmission lines. Transmission lines network comprises of 670 km of 400kV, 3610.7 km of 220 kV, 1662.47 km of 132 kV, and 543 km of 66kV. Transmission lines are interconnected with 50 grid substations and 5 off grid substations at voltage levels 66kV and above, the total installed capacity of these substations as of June 2017 is 3883.4 MVA.
Tanzania is the only country in EAPP that is also part of the Southern Africa Power Pool, giving it access to the power demand and infrastructure for a large portion of the continent. The Government of Tanzania is committed to the construction of the transmission interconnections necessary to expand opportunities for and from regional electricity markets.
The Ministry of Energy anticipates further diversifying the balance of its electric power fuel sources toward, in priority order, natural gas, coal, hydro, geothermal, and renewables, especially solar and wind. Tanzania demand for natural gas has doubled from a total of 145 million cubic feet (mcf) per day in 2016 to 300 mcf in 2017 and expects a significant increase in the near future as proven reserves move into production.
Opportunities exist in:
- High efficiency gas turbines, parts and services
- Diesel turbines, parts and services
- Petroleum exploration services
- Coal power generation
- Electricity transmission equipment (transformers, cables, etc.)
- Electrical metering and installation equipment
- EPC Contracting Services
Natural gas: Tanzania has been exploring for natural gas for more than 50 years. The first natural gas discovery in Tanzania was Songo Songo Island (Lindi Region) followed by Mnazi Bay (Mtwara Region). The total length for gas transmission pipeline is 842 kilometers (km), and total length of distribution network for industrial customers in Dar es Salaam amount to 58 kilometers. The discovered natural gas reserves amount to 57.25 trillion standard cubic feet (TCF) according to the Ministry of Energy data of March 2016.
Hydro power: Tanzania’s interconnected grid system has an installed capacity of 1,513 MW, of which 41.54% is hydropower. The largest hydropower complexes are the Mtera and Kidatu Dams and they are situated on the Great Ruaha River. The Mtera Dam is the most important reservoir in the power system providing over-year storage capability. It also regulates the outflows to maintain the water level for the downstream Kidatu hydropower plant.
Plants are all interconnected with the National Grid System and their installed capacity for each station are as follows: Kidatu 204 MW, Kihansi 180 MW, Mtera 80 MW, New Pangani 68 MW, Hale 21 MW, Uwemba 0.843 MW and nyumba ya Mungu 8 MW, totaling to 561.843 MW. In 2017, the Government of Tanzania invited bids to build a 2,100-megawatt (MW) hydroelectric on the river Rufiji (Stieglers Gorge). As of 2018, the project continues to be on the GoT’s priority list.
Biomass comes in a variety of forms, which may be utilized as an energy resource. It is possible to classify the material into two main groups: woody biomass and agro-forestry waste (crop wastes, animal manure, and forestry processing wastes). These materials can be burned directly or first converted into solid (charcoal), liquid (ethanol) and gaseous fuels (biogas, producer gas).
Biomass energy is a major renewable energy resource used in a traditional way by almost all households, institutions and small and medium-sized enterprises in Tanzania. Biomass energy is mostly used for heat production and as fuel for cooking in Tanzania.
Figures on dependence on wood fuel for cooking range from more than 73% to 90%. More than 90% of biomass demand is for household consumption (firewood, charcoal, crop residues). The rest of biomass demand is for commercial, institutional and industrial sectors (10%). Annual consumption of charcoal in Tanzania stands at one million tons per year and is growing fast, contributing to more than nine million tons of CO2 and depletion of more than 300 hectares of natural forest per day. Change of land use and deforestation also accounts for 58% of the country’s total greenhouse gas emissions. Growing demand is driven by rapid urbanization and high relative prices or scarcity of energy substitutes, particularly kerosene, electricity, biogas, biomass briquettes and liquefied petroleum gas.
Geothermal: Tanzania lies within the East African Rift System. Multiple reconnaissance surveys, hot spring and geothermal site assessments have been carried out in the country since 1949. These studies of geothermal sites included measurements of surface temperature, water and gas flow as well as analysis of water and gas in the hot springs (Mayalla et al., 2011). The country established the Tanzania Geothermal Development Company as a public entity for spearheading domestic geothermal development since 2013. Since then, a number of exploration studies on geothermal energy are in progress at different levels in different geothermal sites. The most researched site is the Ngozi prospect. In 2017 the AfDB granted US $21.7 million to develop Tanzania’s Ngozi geothermal steam field. Most of the other geothermal prospects in the country are at the reconnaissance stage.
The early geothermal studies of surface manifestations across the country indicated the potential for more than 5,000 MW in geothermal projects. More than 50 sites have been identified so far and are proposed for more detailed investigation, mainly from three regions. These sites are:
• the Northern Zone (Kilimanjaro, Arusha and Mara region)
• the Southern Zone (Rukwa and Mbeya region)
• the eastern coastal belt, which is associated with rifting and magmatic intrusion (the Rufiji Basin) and the Luhoi Spring site, with potential for 50 - 100 MW.
Tanzania does not have any geothermal power generation facilities, and there is no commercial usage of geothermal water. However, there is potential to harvest the resource for domestic to industrial heating once it is brought to the surface (Mnjokava, 2014).
Wind Power: Tanzania is blessed with strong wind resources, which attain speeds of between six and eight meters per second (m/s), particularly in escarpment areas around the Rift Valley and along the coastal areas. TANESCO and the Ministry of Energy are leading wind resource assessments in Mkumbara (Tanga), Karatu (Manyara), Gomvu (Dar es Salaam), Litembe (Mtwara), Makambako (Iringa) and Kititimo (Singida), while the Rural Energy Agency is supporting wind measurements on Mafia Island. Wind measurements at 30m are available from TANESCO for the three sites of Makambako, Mwanga and Singida. There are various projects looking at building the country’s first large-scale wind power plant in Singida, with a capacity of 200 MW.
Coal reserves are an abundant resource in Tanzania. A conservative estimate is 1.9 billion tons with 25 percent proven reserves; however, Tanzania is estimated to hold a potential of up to 5 billion tons. Coal sites include Kiwira, Mchuchuma/Katewaka, Ngaka, Rukwa and around Lake Victoria. Currently no power is generated from these coal fields; however, the Government of Tanzania has plans to develop up to 2,900 MW of coal-fired power generation by 2025.
Key players in the Tanzanian Energy Sector:
Ministry of Energy (ME) - ME is mandated to develop energy and manage the energy sector. It is responsible for the formulation and articulation of policies to create an enabling environment for stakeholders in the sector. The ME plays an essential policy guidance role, complementing the other major players (i.e., the REA, TANESCO, EWURA, TPDC, private companies, and financiers). See www.nishati.go.tz
Energy and Water Utilities Regulatory Authority (EWURA) - EWURA is an autonomous, independent regulatory authority established by the Energy and Water Utilities Regulatory Authority Act. It is responsible for the technical and economic regulation of Tanzania’s electricity, petroleum, natural gas, and water sectors. See www.ewura.go.tz
Tanzania Electric Supply Company (TANESCO) - TANESCO is a vertically-integrated utility owned by the Government of Tanzania and is the country’s principal electricity generator, transmitter, and distributor. Currently, it provides the vast majority of the effective generating capacity to the national grid, and is responsible for transmission and distribution, serving customers on the main grid and in 18 isolated grids. See www.tanesco.co.tz
Tanzania Petroleum Development Corporation (TPDC) - TPDC is the state owned corporation through which ME implements its petroleum exploration and development policies. See www.tpdc.co.tz
Rural Energy Agency (REA) - REA is an autonomous body under ME that became operational in October 2007. Its principal responsibilities are to: (i) promote, stimulate, facilitate, and improve modern energy access in rural areas to support economic and social development; (ii) promote rational and efficient production and use of energy and facilitate the identification and development of improved energy projects and activities in rural areas; (iii) finance eligible rural energy projects through the Renewable Energy Fund (REF); (iv) prepare and review application procedures, guidelines, selection criteria, standards, and terms and conditions for the allocation of grants; (v) build capacity and provide technical assistance to project developers and rural communities; and (vi) facilitate the preparation of bid documents for rural energy projects. See www.rea.go.tz .
Power Africa: Power Africa is supporting the Tanzanian energy sector through transaction assistance for priority generation projects, technical advice to release the constraints to private sector investment, and capacity building for key institutions. Additional interventions include support to various other companies through USAID’s Development Innovation Ventures and U.S. African Development Foundation’s Off Grid Energy Challenge, jointly supporting over 14 enterprises to deliver off-grid energy solutions in Tanzania.
Power Africa is working to reduce losses and hybridize five isolated diesel generation plants in Tanzania. Loliondo in Arusha, Liwale in Lindi, Kibondo and Kasulu in Kigoma, and Mpanda in Rukwa. The five sites will create opportunity for private sector investment for developing renewable power plants to reduce dependency on expensive diesel generators. Learn more about how Power Africa is partnering to address key challenges in Tanzania’s electricity sector and supporting private sector investment in energy at: https://www.usaid.gov/powerafrica/tanzania.