Tanzania Simplifies Energy Regulatory Systems

Simplified energy regulatory systems in Tanzania see an improvement in power distribution for remote areas across the country.

Eight small-scale power projects (SPPs) have started producing a total of 33.3MW in rural areas as a result of an enabling energy regulatory arrangement, according to local media The Citizen.

The director general of the Energy and Water Regulatory Authority, Felix Ngamlagosi, stated that this rise in power generation is due to the regulator having simplified the process of approving SPPs.

Ngamlagosi further highlighted that the new laws has led to an interest in venturing into small projects to generate electricity even in remote areas, as the number has now escalated.

The projects are reported to be based in eight districts and the investors include Tanganyika Plantation Company (20MW) in Kilimanjaro; Tanganyika Wattle Company (1.5MW) in Coast, Tulila Hydro-power (5MW) in Ruvuma, Iyovi Hydro-power (0.95MW) in Morogoro, Andoya Hydro-power (0.5MW) in Ruvuma, Darakuta Hydro-power (0.32MW) in Manyara and Mwenga Hydro-power plant (4MW) in Iringa.

Ngamlagosi said: “Apart from the eight SPP energy ventures, which are in active operation, other 20 SPP investors await approvals. The majority of them are Tanzanians.”

According to Ngamlagosi, investors are now able to download the model power purchase agreement on the technology that they intend to use, which is a starting point for negotiations with the utility that they sign the power/energy sale contract with.

Media reported that Tanzania Electric Supply Company deputy director of investments, Declan Mhaiki, has recently appealed foreign energy business executives, stating that more investors are highly needed to cope with the rising demand for power.

Media quoted him noting that while the current electricity production capacity is standing at 1,357MW, the country has set a target of producing 5,000MW by 2020 and 10,000MW by 2025.

“We have ample energy sources. Apart from the renewable sources such as biomass, wind, solar and geothermal, we have natural gas amounting 57.6 trillion cubic feet, coal reserves and hydro-electric power potentials,” he said.

Source: ESI Africa

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