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INVESTMENTS IN ENERGY/ELECTRICITY SECTOR IN TANZANIA
OBJECTIVE
TO PROMOTE THE DEVELOPMENT OF THE TANZANIA’S POWER SECTOR

INTRODUCTION
WORLD Power Map
Energy Consumption Pattern
- Tanzania’s position - the country is un-electrified under international
standards

TANZANIA ENERGY SITUATION
- 10% access
- 1% rural has access
- Currently there is approximately 32% generation deficit
- GOT/TANESCO implementing an emergency power plan through an accelerated gas to power programme
- The plan include leasing power plants (140MW) and installation of additional 145 MW permanent plants running on natural gas
- Conversion of 100 MW diesel plant to natural gas
- Implementing the 200MW Kiwira coal to electricity project
- use PPP in order to accelerate access expansion, REA/REF
MTERA DAM WATER LEVELS 1997-2006

POWER SUPPLY
Generation Mix
IMPLICATION OF THE MIX
- COST OF OPERATION HAS INCREASED.
ABOUT 70% 0F REVENUE IS SPENT ON THE TWO IPPS OF SONGAS AND IPTL (52% OF DEMAND)
- HIGH OPERATIONAL COSTS DUE TO AN INCREASE IN LIQUID FUEL PRICE IN THE WORLD MARKET
- THE LANDSCAPE OF ELECTRICITY INDUSTRY IS VASTLY DIFFERENT FROM WHAT IT WAS A FEW YEARS AGO
SYSTEM INEFFICIENCIES
- PRE SPECIFCATION LOSSES WERE AT 28%
- WHY?? EFFECT OF SPECIFICATION OF TANESCO UNDER PSRC
- SERIOUS LACK OF INVESTMENT DUE TO PERCEPTION THAT NEW INVESTMENT WOULD HINDER PRIVATISATION
INVESTMENT REQUIREMENT
- NEED HEAVY INVESTMENT IN THE NEXT 5 YEARS
- TOO MUCH EMPHASIS ON GENERATION, T&D ALSO NEEDS FUNDING
- WHAT IS THE PRIVATE SECTOR LOOKING FOR IN A MARKET LIKE TANZANIA?
- TARIFFS WHICH ARE RECOVERING OPERATING COSTS, REVENUE SUFFICIENT,PROMOTING GROWTH AND APPROPRIATE RETURN ON INVESTMENT
- SIMPLE BUSINESS, LEGAL AND REGULATORY FRAMEWORKS
- ESTABLISHMENT OF STRONG TANZANIA INVESTMENT COORDINATION
- POLITICAL STABILITY
- STABLE FISCAL REGIME
INVESTMENT OPPORTUNITY IN RENEWABLE SUB SECTOR
- COGENERATION: COGENERATION IS MATURE TECHNOLOGY THAT CALLS FOR MORE INVESTMENT
- SOLAR PV SYSTEM
- WIND
GEOTHERMAL PROSPECTS IN TANZANIA

PROMOTION OF BIOFUELS
- BIOFUEL CROP FARMING (SUGARCANE, SWEET SORGHUM, JATROPHA, ETC.)
- BIOFUEL PROCESSING FACTORIES
- BIOFUEL INFRASTRUCTURE - PIPELINES
- POWER GENERATION FROM BIOWASTE
ENERGY EFFICIENCY
- ENERGY EFFICIENT/ CONSERVING GADGETS
- ENERGY SAVERS FOR LIGHTING – LOCAL PRODUCTION AND SALE
- ENERGY EFFICIENT BUILDINGS


TARIFF COMPARISON WITHIN E.A REGION

TARIFF COMPARISON

TARIFF COMPARISON
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