TANZANIA ELECTRIC SUPPLY
COMPANY LTD (TANESCO)
FINANCING INITIATIVES AND
BUSINESS PLANS THAT WORK
Focusing on Grid Solutions
Presented by: ENG. DECKLAN MHAIKI DEPUTY MANAGING
DIRECTOR INVESTMENT (TANESCO-DMDI)
CONTENTS
Tanzania at a Glance
 Electricity Sector & Resources
 Sustainable Energy Agenda
 Generation & Network Expansion Programs
 Renewable Energy Development
 Financing Initiatives
 Conclusion

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TANZANIA AT A GLANCE
Main Figures
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Area
947,300sqm
Population 49.25million (2013)
GDP
48.6bn USD (2015)
GDP per capita 842 USD (2015)
Consumption per capita 100kWh
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ELECTRICITY SECTOR (Key stakeholders)
Ministry of Energy & Minerals
EWURA
Board of Directors
Generation
Imports
Transmission
TPDC
REA
IPPs
Distribution
Customers
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LEGAL FRAMEWORK GOVERNING THE SECTOR
Electricity & Gas:
• National Energy Policy 2015
• Electricity Act, 2008
• Natural Gas Policy, 2013
• Natural Gas Act (under preparation)
• National Gas Utilization Master Plan (under prep).
• EWURA Act of 2001,
• REA Act of 2005 and
Cross-cutting Legislations
• Occupational Safety and Health Act, 2003
• Environmental Management Act, 2004
• Income Tax Act, 2004
• Public-Private-Partnership Act, 2010
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ENERGY RESOURCES
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HYDRO – 4.7GW (12% Developed)
COAL – 1.9 Bn tons (0% developed)
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NATURAL GAS DISCOVERIES
Deep Sea : 47.08 TCF
Mkuranga
2007 (0.2 TCF)
Kiliwani
2008 (0.07 TCF)
Songo Songo
Mnazi Bay
Ntorya
1974 (2.5 TCF)
1982 (5 TCF)
2012 ( 0.178 TCF)
Total GIIP Onshore = 10.17 TCF
TOTAL GIIP: 57.25 TCF
(Developed - 607MW)
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GEOTHERMAL POTENTIAL

58 sites – 5,000MW
(none developed)
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32°0'0"E
34°0'0"E
36°0'0"E
38°0'0"E
40°0'0"E

10°0'0"S
8°0'0"S
6°0'0"S
4°0'0"S
2°0'0"S
±

0°0'0"
30°0'0"E
2°0'0"N
SOLAR POTENTIAL – DEVELOPED SOLAR MAP
Legend
12°0'0"S
Solar radiation
(kWh/m2/day)
High : 6.13
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Tanzania
is
among
the
countries with high solar
radiation.
Daily solar insolation – 4.21
– 6.13 kWh/m2/day
Annual insolation – 1,538 –
2,242 kWh/m2/yr
Central zone and part of
southern and Lake Zone are
dominating.
Coordinate System: GCS WGS 1984
Datum: WGS 1984
Units: Degree
30°0'0"E
32°0'0"E
34°0'0"E
0 40 80
36°0'0"E
160
240
320
Kilometers
38°0'0"E
14°0'0"S
Low : 4.22
40°0'0"E
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ELECTRICITY SECTOR
Main figures by October, 2016
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Generation grid installed capacity
-
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Hydro
Natural gas
Oil
Biomas
1,357.69MW
41.7%
44.7%
12.8%
0.8%
Installed Capacity by Ownership
Tanesco own 1,049.40MW – 77.3%
IPPs own 308.29MW – 22.7%
Transmission Lines
6,167.0km
Distribution Lines 33 & 11kV
32,324.0km
Distribution Lines 0.4/0.23kV 101,900.0km
System Frequency
50Hz, ±2.5%
Maximum Demand
1,041.63
Access to electricity
40% (March 2016)
Number of customers 1,973,754
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SUSTAINABLE ENERGY AGENDA
In Line With SDG 7 Tanzania has Developed the
National Development Vision 2025 with the
Following Main Objective:
 Transform the Country Into a Middle Income by
2050.
 Increase Generation Capacity to 10000MW by
2025
 Increase Access to 75% by 2025
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SUSTAINABLE ENERGY AGENDA NATIONAL DEVELOPMENT VISION
National Development Vision 2025 has the
Following Main Objective:
 Transform the Country Into a Middle Income by
2025.
 Increase Generation Capacity to 10000MW by
2025
 Increase Access to 75% by 2025
 Strengthening the national grid in terms of
generation and transmission capacity is the main
agenda
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GENERATION CAPACITY EXPANSION PROGRAMME
The short and Medium Term plan is to increase generation capacity to
5,000MW and a huge potential of natural gas which is available locally as a
source of power generation will enable to achieve this target by 2020 including:
• Kinyerezi I Extension 185MW under construction - expected to be online by
2018.
• Kinyerezi II 240MW natural gas fired power plant with financing from Japan
and GOT under construction - expected to be online by 2018.
• 300MW natural gas fired plant proposed to be financed by JICA and GOT
and it is at the appraisal stage. Planned to be ready by 2020.
• Ongoing negotiation with various developers: 300MW (coal), 100MW
(wind), Solar PV (55MW), 850 MW (natural gas) and 70MW (Hydro) – All
these plant to be online by 2020.
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GENERATION CAPACITY EXPANSION PROGRAMME……
Long-term View:
• Competitive procurement of generation projects for all
technologies i.e. natural gas, coal, wind, hydro and
Solar.
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NETWORK EXPANSION PROGRAMME
Network Expansion Involves:
 Grid Extensions
 Distribution Expansion and Rural Electrification
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GRID EXTENSION: Backbone / ZTK Transmission Line
Under Construction
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Backbone will be a part of the planned ZTK line
Tanzania is the hub of EAPP and
SAPP and important for power
interconnection.
The new 400kV Backbone line
will connect the South and south
west of Tanzania to the load
centers in the North.
Iringa - Shinyanga to be ready
by end of 2016 and Singida –
Arusha – Namanga Kenya will be
ready by end of 2018.
The ZTK interconnector will link
the Southern and Eastern Power
Pools and enable will power
trading.
GRID EXTENSION……. Cont.
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North – West 400kV T/L (1,148km) from Mbeya – Sumbawanga – Mpanda –
Kigoma – Nyakanazi is under review of feasibility study from 220kV to 400kV.
220kV Bulyanhulu – Geita – Nyakanazi (188km) is under construction and
expected to be completed in 2018.
North – East 400kV T/L (664km) from Dar – Chalinze – Segera – Arusha.
Financing has been finalized and planned to commence construction early 2017
and completed in 2019.
220kV T/L Makambako – Songea (250km) is under construction and expected to
be completed in 2018.
400kV T/L Somanga – Kinyerezi (198km). Compensation to the PAPs Contract
negotiation with the Consultant for supervision of the project is ongoing.
400kV T/L Chalinze – Dodoma (350km). Feasibility study is at the final stage of
completion.
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FUTURE GRID MAP BY 2033
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CUSTOMER BASE AND CONNECTION RATE
Efforts towards universal access to modern energy involves
connecting more customers through National Grid and Minigrids.
 The current customer base is about 1.9 million.
 Annual connection rate stands at 250,000 customers.
 Access/ Connectivity; All regional headquarters in
Tanzania and (99%) of district headquarters have
electricity. Currently the connectivity level stands at 33%
and access level at 40%. Our target is to increase
electricity connectivity level to 75% by 2025.
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STATUS OF ACCESS PER REGION
Access Rates per Region (March 2016) – AVR: 40%
120%
100%
80%
60%
40%
20%
0%
% of Non - Electrified Villages
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RURAL ELECTRIFICATION PROGRAMME

The Government of Tanzania through REA has set
a target of providing electricity services to all
villages in Tanzania by year 2021 through grid
extension and off-grid renewable energy solutions.
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Several initiatives have been developed and some
of them are in various stages of implementation
(i.e. Grid extension projects, Renewable energy
projects, grid connected mini grids, off grid
projects, etc.)
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EXTENT OF RURAL ELECTRIFICATION
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Renewable Energy Development
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The Government has established a Subsidiary Company for
development of Geothermal named Tanzania Geothermal
Development Company.
The Stability Study for integrating renewable energy sources
mainly wind farm and Solar PV plant into the national Grid have
been conducted.
The study provided Limit of the overall RE capacity to about:
- 385MW capacity at 1,250MW peak demand
- 710 MW capacity at 2,500MW peak demand.
Peak demand reached so far is 1026.48MW.
Financing Initiatives
Financing initiatives in Tanzanian Power Sector include:
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Rural electrification financing (REA):
Government Project Financing through TANESCO:
 Generation projects: E.g. Kinyerezi I, IE, & II
 Transmission projects: E.g. Feasibility study for Chalinze Dodoma transmission line
 Distribution projects: E.g. Construction of Dar es Salaam
Distribution Control Centre
Development partners.
Project financing through Concessional and Commercial loans.
CONCLUSION
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The Demand for Energy will continue to increase
over the coming years.
With its vast and untapped energy resources
Tanzania is an ideal place for clean and
renewable
energy
solutions
to
ensure
sustainability of the electricity sector.
However, more Financing initiatives are needed
to ensure successful implementation of various
business plans and programmes.
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THANK YOU
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