Energy sector can contribute  towards economic growth

16May 2019
Editor
The Guardian
Energy sector can contribute  towards economic growth

While challenges remain in Tanzania’s energy sector, we are confident that the sector is poised for growth, if invested in.

The country needs both the finance, technology and skills to increase the electricity generation capacity.

 Our cuntry’s investments in the sector should ensure job creation. In addition, the investments    should ensure industrialisation and development of energy equipment manufacturing.

Tanzania’s economy has been growing, adding that the energy sector is the engine to economic growth and needs investments.

This as the country is facing inequality, youth unemployment and a very low economic growth rate. On energy constraints  the government is aware that the energy sector is constrained while energy needs are on the rise.

 If the economy has to grow, our generation capacity has to increase now. In addition, our electricity infrastructure is   in need of more investments.

 The energy sector in the country, like the global energy sector, is going through a transition where we have to ensure that as we increase generation of clean, accessible, affordable, secure and sustainable energy for all.

This is a best prospect industry sector for this country.The continued development of Tanzania’s energy sector is critical to the country’s ability to grow economically, attract   Foreign Direct Investment (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 per cent of the households in the Tanzania Mainland were connected to electricity by 2016. Currently, power demand growth is between 10-15 per cent per year. The government 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 per cent 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 that provide many of the commercial terms that would otherwise delay negotiations on power purchase agreements (PPAs).

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 government’s long term vision aims at increasing connectivity from 30 per cent to 50 per cent 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.  Tanzania is the only country in The Eastern Africa Power Pool (EAPP)   established in 2005 with the signing of an Inter-Governmental Memorandum of

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.

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