Tanzania's energy sector has over $8 billion in active energy projects, all of which are renewable energy. Sixty percent of the projects are hydroelectric.
An interesting development is emerging in Tanzania's power generation sector, with a growing number of companies investing in renewable energy projects. Across the country there are opportunities, plans and bidding options for greener energy, including hydroelectric, solar, geothermal, gas and wind power plants.
Tanzania has projects worth $ 8.32 billion currently in the planning and development stage or under construction. These include the Lake Ngozi geothermal power plant, owned by the government of Tanzania Geothermal Development Company, $ 821 million.
First used in Italy in 1904, geothermal energy is the heat emitted by the earth's subsurface contained in the rocks and fluids beneath the crust. This facility, located in the Mbeya region, will have an estimated capacity of 600MW and will be established in two phases. The first puts into operation about a third of the plant's total capacity.
Ruzizi III Energy has a $ 700 million project in the bidding process, while Arab Contractors – The Sewedy Electric Joint Venture is building the Rufiji hydroelectric dam. This $ 2.9 billion project currently represents 65% of the value of installations in the country's electricity sector.
Basically linked to the new power generation projects is the $ 595 million ZTK regional electricity interconnection initiative that is currently in the bidding process. The project aims to enable energy exchanges between the Eastern and Southern African Energy Pools and pave the way for a competitive regional energy market.
The project was launched in 2014 after Zambia, Tanzania and Kenya signed an intergovernmental memorandum of understanding. Tanzania is home to the longest section of the line as it passes through Mbeya, Iringa, Dodoma, Singida, Shinyanga and Arusha before ending at Namanga on the border with Kenya.