Tanzania Needs $1.2B To Double Power Production By 2016

Written by Makula Dunbar

Sep 03, 2014

Tanzania aims to double its power production to 3,000 megawatts by 2016 at a cost of around $1.21 billion (R13 billion) to meet rising demand by using its vast natural gas supplies, an official at the state-run utility said on Wednesday.

Businesses say frequent power outages now are hurting productivity and are a barrier to economic growth.

Decklan Mhaiki, deputy managing director for investments at Tanzania Electric Supply Company (TANESCO), said the country’s installed capacity stood at 1,500 megawatts (MW), against a peak power demand of 900 MW.

The full installed capacity is however rarely available due to power plant outages and drought.

Mhaiki said demand for electricity was growing at a rate of 8 to 10 percent per year.

A gas-powered plant located near the commercial capital Dar es Salaam would start producing 150 MW by the end of this year, he said, adding that the total cost of the additional power supply would be funded by private investors and public funds.