Trystan Casey
Tanzania has a large untapped renewable energy potential, with nearly 80% of its electricity coming from renewable sources as of April 2020. However, access to electricity is still limited, with only about 36% of households connected to the grid. This disparity is even more pronounced in rural areas, where only about 24.5% of villages have access to electricity. The Tanzanian government has implemented various initiatives to address this issue, such as the Tanzania Rural Electrification Expansion Program (TREEP), which has provided more than 4.5 million people with access to electricity. As a result, villages like Nholi and Mzogole have recently gained access to electricity, improving the lives and livelihoods of their residents.
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What You'll Learn
Tanzania's energy mix
As of 2020, Tanzania's total energy production reached 1,036,560 TJ, with biofuels and waste accounting for approximately 79.14% of the total. Natural gas contributed 5.35% to the energy mix, while oil accounted for 12.96%. Coal and hydroelectric power supplied about 1.44% and 1.09%, respectively. Wind, solar, and other renewable sources made up a minor portion of around 0.016%.
Tanzania has a large untapped renewable energy potential, with close to 80% of the country's electricity coming from renewable sources as of 2020. Natural gas and hydroelectric power are the main contributors to renewable energy production, with solar power also being widely used in rural areas, providing access to energy for 65% of rural households.
The Tanzanian government aims to increase its generation capacity to at least 5,000 megawatts in the medium term and 10,000 megawatts in the long term. The completion of the Mtwara-Dar es Salaam Natural Gas Pipeline in 2015 ensures a constant supply of natural gas to meet the generation requirements of large gas power stations. Additionally, the inauguration of the Nyerere Hydropower Plant has increased the country's electricity generation capacity by over 200 MW.
The Tanzania Rural Electrification Expansion Program (TREEP) has played a significant role in expanding access to electricity in rural areas, providing more than 4.5 million people with electricity connections and contributing to one of the fastest access expansion rates in Sub-Saharan Africa.
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Solar power in rural areas
Solar power is an effective solution for providing electricity to rural areas, especially in regions with poor access to energy. It offers a clean, sustainable, and affordable energy source, reducing reliance on costly and unreliable diesel generators or traditional power grids.
In Tanzania, for instance, the Tanzania Rural Electrification Expansion Program (TREEP) has played a significant role in expanding access to electricity in rural areas. Implemented in 2017, TREEP has provided electricity to over 4,300 villages, including Nholi and Mzogole, benefiting more than 4.5 million people. As of 2020, approximately 24.5% of Tanzania's rural areas had access to electricity, with solar power being widely used, as 65% of rural households had access to solar energy sources.
Secondly, solar power is environmentally friendly. It generates electricity without emitting greenhouse gases or contributing to air pollution, helping rural communities reduce their carbon footprint and combat climate change.
Thirdly, solar power creates economic opportunities and empowers local residents. Installation, maintenance, and servicing of solar power systems can create jobs and stimulate local economies, and enable entrepreneurial ventures such as solar-powered charging stations or small-scale enterprises utilizing solar energy.
However, there are also challenges associated with solar power in rural areas. Integrating solar power into existing power grids can result in long interconnection queues, causing delays and uncertainties for communities and farmers leasing their land for solar projects. Additionally, as solar development in rural areas grows, it drives up demand for land, creating tension between private property rights and concerns over the loss of productive farmland. Furthermore, proper disposal of decommissioned solar panels is crucial to prevent contamination of soil and groundwater in rural communities.
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The Tanzania Rural Electrification Expansion Program (TREEP)
TREEP has been instrumental in helping Tanzania achieve one of the fastest access expansion rates in Sub-Saharan Africa over the past decade. Since its implementation began in March 2017, the program has provided more than 4.5 million people with access to electricity, surpassing its initial target of 2.5 million citizens. Additionally, TREEP has facilitated new connections for over 1,600 healthcare facilities and nearly 6,000 educational institutions. The program has also fostered employment and business opportunities for women and improved educational outcomes for students in remote areas.
The World Bank, through its involvement in TREEP, has introduced the PforR financing instrument for the first time in the rural electrification and energy sectors in the African region. This approach is well-suited for streamlining and accelerating electrification by focusing on tangible results. It has also attracted additional support for the NREP and the government's access agenda from other development partners and the private sector.
TREEP is part of Tanzania's efforts to enhance its energy mix and tap into its abundant energy resources. The country relies primarily on natural gas for electricity generation, with significant contributions from hydropower. However, other sources such as biomass, wood fuel, coal, wind, geothermal, uranium, and solar energy are also available and offer untapped potential.
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The unreliability of the electrical supply
The unreliability of Tanzania's electrical supply has hindered the development of the country's industry. While the country has a large untapped renewable energy potential, the electrical supply varies, particularly when droughts disrupt hydropower electric generation. In such cases, rolling blackouts are implemented as necessary. In addition, nearly a quarter of the electricity generated is lost due to poor transmission infrastructure.
The country's electricity supply company, TANESCO, has been questioned about its financial vulnerability and rent capture. There have also been concerns about the role of intermediaries in defining contracts and cost structures. As a result, compact tariff reform requirements were implemented to achieve more equitable pricing for TANESCO, which resulted in higher-cost electricity for ZECO, from which it purchases its power.
To address the high frequency of blackouts on the main island of Zanzibar, the MCC's $694.5 million Tanzania Compact funded the $64.6 million Zanzibar Interconnector Activity. This activity involved installing a new submarine cable and new overhead power lines, as well as adding capacity to a power substation. The project has been successful, with almost all respondents reporting that the electric power supply is more reliable now than before the installation of the new cable.
The Tanzanian government has also implemented the Tanzania Rural Electrification Expansion Program (TREEP) to improve access to electricity in rural areas. Since its implementation in March 2017, TREEP has provided more than 4.5 million people with access to electricity, adding new connections for more than 1,600 healthcare facilities and nearly 6,000 education facilities.
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The cost of electricity
Secondly, the cost of electricity generation in Tanzania has been high due to the country's reliance on various energy sources. While natural gas and hydropower are significant contributors, the country has also had to rely on costlier liquid fuels for backup power. In addition, the need for emergency power supply contracts using high-cost liquid fossil fuels has further increased expenses. However, the completion of the Mtwara-Dar es Salaam Natural Gas Pipeline in 2015 has helped to ensure a constant supply of natural gas, reducing the cost of generation.
The Tanzanian government has also implemented several initiatives to improve access to electricity and reduce costs. The Tanzania Rural Electrification Expansion Program (TREEP) has been successful in providing access to electricity for over 4.5 million people, exceeding its initial target. TREEP is financed by the government, the International Development Association (IDA), and the Scaling Up Renewable Energy Program (SREP), with a focus on providing access to rural areas. Additionally, the World Bank has supported the government's efforts through various projects, aiming to expand access to affordable, reliable, and modern energy.
Furthermore, Tanzania has a significant potential for renewable energy, which can help reduce costs in the long term. The country has abundant energy resources, including wind, geothermal, solar, and hydropower, which are not yet fully exploited. The government supports solar development by removing VAT and import taxes on solar components, and the President has stated a goal of producing 6,000MW from renewable energy by 2025.
Despite these efforts, affordable access to clean energy remains a challenge for many Tanzanians, especially those in rural areas. Energy is critical for reducing poverty, and the government recognizes the need to improve access and reduce costs to achieve its socioeconomic goals. While progress has been made, ensuring a stable, efficient, and affordable electricity supply for all Tanzanians is an ongoing process.
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Frequently asked questions
As of 2020, 73.2% of Tanzania's urban areas and 24.5% of rural areas have access to electricity, which is about 14% of the population.
The Tanzanian government has implemented the Tanzania Rural Electrification Expansion Program (TREEP) to improve access to electricity in rural areas. Since its implementation in 2017, TREEP has provided more than 4.5 million people with access to electricity. The government also plans to increase its installed capacity to 10 GW by 2025.
Increasing access to electricity in Tanzania can help reduce poverty, enhance living conditions, and support the country's socioeconomic goals. It can also create employment and business opportunities, particularly in remote areas.
