Industry - Energy & Utilities

An overview of the Energy & Utilities sector in Tanzania

Electricity generation, transmission and distribution in East Africa is through the state owned companies such as Tanesco in Tanzania and KenGen in Kenya. These predominantly government owned companies are responsible for 95% of the region's electricity supply. Petroleum, hydropower and coal are the major source of commercial energy in the the region. The biomass energy resource, which comprises fuel-wood and charcoal from both natural forest and plantations, accounts for 90 per cent of total energy consumption.

Natural gas at Songo Songo Island off the southeast coast of the country was confirmed in 1977 and recently the reserve audit put the gas reserve at 736 billion cubic feet (bcf). In 2002 the investors in Songo Songo gas, Songas, started construction of gas processing facilities and a pipeline for the transportation of gas from Songo Songo Island to Dar es Salaam. As of 2005, Songas was capable of generating a total of 185 MW feeding the national grid. Tanesco, with financial assistance from the government, is in the process of acquiring 100 MW of gas-fired generation at Ubungo, Dar es Salaam. The company is also in the process of leasing/renting gas generation of 100 MW at Ubungo by the middle of 2006. Further generation of 45 MW at Tegeta is planned to come online in June 2007, as is the conversion of one of the IPPs, namely the IPTL plant of 100 MW, from heavy fuel oil to gas. The availability of this gas ensures that when fully utilised, the long term generation prices will be very competitive.

Capital | Africa actively assists clients in the energy and utilities industry sector particularly those focused in renewable energy such as wind and solar power.