Tanzania’s Power Crisis: Solutions and Challenges Ahead

Is This the Ultimate Solution to Tanzania’s Power Crisis?

Tanzania’s Electricity Production vs. Demand Tanzania currently generates approximately 3,500 megawatts (MW) of electricity from various sources, while the national demand remains below 2,000 MW. In theory, this surplus should be enough to sustain the country and even supply neighboring nations like Rwanda or Burundi. However, despite government efforts, power outages remain a persistent issue.

One of the country’s largest power projects, the Julius Nyerere Hydropower Project (JNHPP), contributes significantly to the national grid. According to Tanzania Electric Supply Company (TANESCO) Director-General Gissimo Nyamohanga, the project is expected to inject 2,115 MW into the grid by March 2025. This substantial contribution has positioned Tanzania as a self-sufficient power producer in Africa.

With such an excess of power, many expected the national conversation to focus on reducing consumer electricity costs or exploring export opportunities rather than grappling with domestic supply challenges. However, recent power cuts in several regions have reignited concerns, particularly following Tanzania’s decision to import electricity from Ethiopia to stabilize supply in the northern regions.

Understanding Tanzania’s Persistent Power Outages President Samia Suluhu Hassan recently acknowledged the challenges, stating, “Power outages continue in the northern regions, but the government has taken steps to purchase electricity to ensure 24-hour availability.” She made this remark while launching the Same-Mwanga-Korogwe water project.

Power interruptions have been a long-standing issue in Tanzania, with variations in frequency, duration, and affected areas. These outages disrupt daily activities for residents and businesses alike.

In a parliamentary session, Special Seats MP Jesca Kishoa cited data from the Energy and Water Utilities Regulatory Authority (EWURA) indicating that Tanzania experienced 2,844 power outages in a single year. Aging infrastructure was identified as a primary cause.

Government Spokesperson Gerson Msigwa acknowledged the issue but noted significant improvements, saying, “Complaints about power cuts have decreased, but we continue to enhance reliability through the national grid reinforcement project.” This initiative is among several infrastructural upgrades aimed at ensuring stable power supply across the country.

Deputy Minister for Energy Judith Kapinga reiterated that outdated transmission and distribution infrastructure remains a key contributor to power disruptions. She emphasized the government’s commitment to modernizing these systems to resolve the issue comprehensively.

A Lifelong Infrastructure Investment Experts in the energy sector identify four critical infrastructure components in power generation, transmission, and distribution, all of which require continuous investment to ensure efficiency and reliability:

1. Generation Infrastructure – Includes hydropower plants, solar farms, wind farms, coal plants, nuclear plants, and natural gas facilities.

2. Transmission Infrastructure – Comprises high-voltage power lines, transmission towers, and substations that transport electricity over long distances.

3. Distribution Infrastructure – Consists of medium- and low-voltage power lines, utility poles, and transformers that deliver electricity to end-users.

4. Consumer Infrastructure – Covers household and industrial wiring, electricity meters, and energy storage systems.

Over the past decade, Tanzania has made substantial investments in these areas, allocating trillions of Tanzanian shillings to improve the power sector. The JNHPP alone cost TZS 6.6 trillion and contributes about 65% of the national grid’s electricity supply. In the last financial year, the government allocated TZS 109.8 billion to enhance transmission and distribution networks, with similar investments expected annually.

National Grid Reinforcement vs. Power Imports The government’s approach to solving the power crisis revolves around two key strategies: strengthening the national grid and importing electricity. Ongoing projects include:

• Construction of 400-kilovolt substations in Chalinze and Nyakanazi.

• Integration of the national grid with East African and Southern African power networks.

• The Tanzania-Zambia (TAZA) transmission line project, connecting Iringa, Mbeya, Tunduma, and Sumbawanga over 664 kilometers.

According to Msigwa, these projects will significantly reduce outages, though completion timelines remain uncertain. The government aims for universal electricity access by 2030.

Additionally, Tanzania is in the final stages of securing a deal to import 100 MW of electricity from Ethiopia to stabilize supply in the northern regions, which are critical for tourism due to attractions like Mount Kilimanjaro and major wildlife reserves.

Diversifying Power Sources for a Sustainable Future Experts argue that diversifying energy sources is the most effective long-term solution. Energy specialist Costa Rubagumya advocates for a multi-source strategy, stating, “We must avoid relying on a single energy source. Multiple sources ensure stability, as one can compensate when another fails.”

Kenyan energy analyst Theo Njoroge supports Tanzania’s decision to import Ethiopian electricity, citing cost benefits and existing infrastructure. Ethiopia’s Grand Renaissance Dam, with a capacity of 7,000 MW, provides cheaper power than Tanzania’s current generation sources.

Felchesmi Mramba, Deputy Permanent Secretary at the Ministry of Energy and Minerals, further explained, “Ethiopian electricity costs just $0.077 per kilowatt-hour, which is more affordable than many domestic sources.” Ethiopia, Sudan, and Libya are among Africa’s largest producers of low-cost electricity.

Reducing Power Losses and Increasing Efficiency Tanzania loses an estimated TZS 32 billion annually due to power transmission inefficiencies, according to TANESCO senior official Pakaya Mtamakaya. He highlighted an 8% average annual power loss due to the long-distance transmission of low-voltage electricity.

By sourcing electricity from Ethiopia through Kenya’s grid to Namanga, Tanzania aims to reduce transmission losses and improve supply stability.

Meanwhile, electricity demand continues to rise, with a 16% increase recorded in the 2023/2024 fiscal year. This growth necessitates continuous investment in transmission, distribution, and management infrastructure, meaning the power supply debate is far from over.