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Official Name:
United Republic of Tanzania

National Designated Entity

Type of organisation:
Dr. Gerald Majella Kafuku
Principal Research Officer
+255 766 604977

Energy profile

Tanzania (2014)

Energy profile
Energy profile
Extent of network

Tanzania’s national electrification rate lies at just 14% – with less than 3% in rural areas.

Renewable energy potential

SolarThe mean solar energy density is about 4.5kW per square metre per day, which indicates its potential use as an energy source. Some solar developers are seeking to set up large solar PV projects..Wind EnergyPotential areas for wind areas have been mapped by TANESCO. There are several areas in the country, predominantly along the coast, with attractive wind speeds.HydroHydroelectricity is the most important indigenous source of commercial energy, with a recognised potential of 4.7 GW of installed capacity and 3.2 GW of firm capacity. Only 15% of the potential installed capacity has been developed and several projects are currently soliciting funding.Geographically, the hydro power potentials of Tanzania are located in the Rift Valley escarpments in the West, Southwest and Northeast regions of Tanzania. The planned large-scale hydropower generation sources include Ruhudji (360 MW), Rumakali (220 MW), and Stieglers Gorge (2,100 MW). The latter may have the potential to produce enough electricity to justify investments in extending the national grid, and has been under discussion for decades due to a number of environmental and social issues.GeothermalThere is a high potential for geothermal power generation in Tanzania, with temperatures of up to 255 oC (dry steam). At least 15 thermal areas with hot spring activity could be justifiable development projects. The total potential geothermal power in 50 identified sites is 650 MW. The Songwe site in Mbeya region alone has an estimated potential of 100 MW of electricity. At issue is that some of the identified sites, such as Lake Natron, are in or near reserves such as Lake Manyara and Ngorongoro. Geothermal exploitation involves changing the flows of underground water, which in some cases have led to draining of nearby lakes. While the potential Tanzania is considerable, it should be kept in mind that estimates are more than an order of magnitude less than in neighbouring Kenya.

Energy framework

The 2003 National Energy PolicyThe National Energy Policy was adopted in 2003 with the main objective of addressing national energy needs. Subsidiary objectives included developing domestic cost-effective energy resources; improving energy reliability, efficiency, and security; and reducing forest depletion. This sector policy statement is significant as it is the first sector policy to refer to climate change explicitly in its text. The energy policy put much emphasis on the promotion of efficient biomass conversion and end use technologies to enhance the conservation of woodlands. Through these objectives the policy is linked directly to climate change, as specified in one of the policy’s statements:‘37. Promote efficient biomass conversion and end-use technologies in order to save resources; reduce the rate of deforestation and land degradation; and minimise threats of climate change.’Feed-in-TariffTanzania has had a feed-in tariff scheme in place since 2008 for small power producers (100 kW to 10 MW). Above that size, the FIT is negotiable. Feed-in tariffs for small power producers are adjusted annually by the Energy and Water Utilities Regulatory Authority (EWURA) and are based on the avoided cost of the electricity. That means that they are undifferentiated by renewable energy technologies and that there is no guaranteed price over the long term even if a power purchase agreement (PPA) is signed for a 15-year period. Within the standardized FIT scheme there are tariffs for feeding into the main grid and into isolated mini-grids.For balancing the higher generation costs in dry seasons, when the availability of hydropower is lower than in wet seasons and thermal power plants have to generate more expensive power, the standardized FIT is differentiated according to the season. In 2012, it averaged $0.093 per kilowatt hour, while the Standardized Small Power Purchase Tariff 2012 for mini-grids was at $0.294. The tariff is calculated on the basis of avoided and incremental costs in mini-grids.Scaling up Renewable Energy Programme-Tanzania (SREP-Tanzania)Tanzania is one of the pilot countries that were selected to prepare SREP Investment Plans in October 2012. The objective of the SREP-Tanzania Investment Plan is to catalyse the large-scale development of renewable energy to transform the country’s energy sector from one that is increasingly dependent on fossil fuels to one that is more balanced and diversified, with a greater share of renewable energy sources. The SREP-Tanzania IP was prepared by the Government of Tanzania, through a National Task Force led by the Ministry of Energy and Minerals (MEM) with support from the Multilateral Development Banks (MDBs).

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