M a r k e t N e w s

Tanzania Witnesses Significant Advancements in Power Generation

Posted on : Wednesday, 16th August 2023

Tanzania has witnessed significant advancement of the electricity industry in the last 5 years, with the commissioning of key power generation projects.


These projects have played an important role in expanding the country’s electricity generation capacity, improving access to electricity and rising economic development.


Here are some of the key projects that have been under implementation and prioritised from 2017:  


The Julius Nyerere Hydropower Station (2115 MW)


This project involves the construction of a 2,115 MW hydroelectric power station using the Rufiji River’s waterfalls. The project that costs Sh6.55 trillion is fully funded by the government of Tanzania.


Once completed, the project is expected to transform Tanzania’s power generation landscape and provide a stable and renewable energy source.


Recently, the Minister for Energy January Makamba provided an update on the construction of the Nyerere Dam which, he said, has reached the minimum depth for power generation at 163.61 meters.


“To initiate electricity generation, the water level has to reach a minimum of 163 metres above sea level. Thus we have reached and exceeded the minimum level,” he said.


According to the Energy Minister, the water volume has also reached 13 billion cubic meters equal to 43% of the maximum level which is 30 billion cubic meters.


“We expect the wet testing at the dam to be around February 2024,” he said.


Kinyerezi II Natural Gas Power Plant (240 MW)


This project concerns the expansion of the Kinyerezi I Power Plant by adding power generation units with a capacity of 185 MW, in addition to the existing 150 MW unit, resulting in a total capacity of 335 MW.


The implementation of this project has been completed and all four power generation units are operational, contributing 185 MW to the National Grid.


The $184 million (about Sh430.33 billion) project has been 100% financed by the government of Tanzania


Rusumo Hydropower Project (80 MW)


The transboundary project is currently at 99.6% completion. This joint venture between the governments of Tanzania, Rwanda, and Burundi involves an investment of nearly $468 million.


The World Bank and the African Development Bank (AfDB) has advanced to the countries a loan of $340 million and $128 million respectively for the implementation of the regional hydroelectric project and the power transmission lines.


Each of the 3 nations is set to receive a supply of 26.67 MW.


The hydropower plant will harness the renewable energy potential of the Rusumo River, replacing fossil fuel-dependent sources and significantly reducing greenhouse gas emissions.


Liquefied Natural Gas (LNG)


This project aims to process the discovered natural gas in blocks 1, 2, and 4 located at a deep-sea level to make it liquefied for sale in the international markets.


The project is divided into 2 parts: the Upstream Stream to be implemented in Mtwara Region and the Central Stream to be implemented in the Likong’o area in Lindi Region.

The estimated value of the project is $42 billion (about Sh98.7 trillion). This includes an investment of $26 billion (about Sh61.1 trillion) for the Upstream Stream, and an investment of $16 billion (about Sh37.6 trillion) for the Central Stream.


The benefits of this project include increased government revenue from gas sales based on the Production Sharing Agreement (PSA) between the government and investors, including royalties, profit sharing, various fees, and taxes.


Solar Power project in Shinyanga (150MW)


This project is about the construction of a solar power generation station in the Kishapu area in Shinyanga Region, with the capacity of producing 150 MW of electricity.


The cost of this project is 115.30 million Euros (about Sh294.02 billion) which is funded by the French Development Agency (AFD).


The project will be carried out in two phases. The 1st phase will involve the construction of a 50 MW power generation station, costing 43 million Euros (about Sh109.65 billion). The 2nd phase will include the construction of machinery for generating 100 MW of electricity, costing 72.30 million Euros (about Sh184.37 billion).


The project involves the construction of a hydropower station with the capacity of producing 87.8 MW using water from the Kagera River. The project also includes the construction of a 38.8 km long 220 kV power transmission line from Kakono to Kyaka, as well as the upgrade of the Kyaka substation from 132 kV to 220 kV.

According to the Minister of Energy by April 2023, activities that have been completed include securing funding for the project implementation, initiating the process of hiring a consultant engineer, and progressing with the selection of a contractor of the project.


The total cost of the project’s construction is approximately Sh724.28 billion.


Source : www.abafnz.com
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