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Tanzania has a large untapped potential. Of the country's total generation capacity, close to 80% of Tanzania electricity comes from renewable energy, with natural gas contributing 892.72MW and Hydro electric power 573.70MW of the total 1,601.84 megawatts, as of April 2020. According to the government of Tanzania, generation projects in the pipeline include: (a) Ruhudji (358MW), Kakono (87MW), Rumakali (222MW), Malagarasi (45MW), Kikon. [pdf]
Electricity access in Tanzania increased from around 13% in 2008 to 32% in 2017. The government is supporting the private sector to develop its electricity market, enhancing the role of renewable energy in the energy mix and increasing rural electricity access. Electricity access in Tanzania increased from around 13% in 2008 to 32% in 2017.
Tanzania’s energy supply depends mainly on biomass. 78.4% of the total population have access to the grid electricity while households connected are 37.7%. The households electrified by solar photovoltaic technology are 30.4% [Rural Energy Agency April 2020].
Largely, the transition towards renewables after 2015 can be attributed to the Government of Tanzania’s (GoT) efforts through the Five-year development plan and the national energy policy to make renewable energy investment a priority in the energy sector. Unfortunately, the current investment commitments in renewables are on the lower side.
This makes the cost of energy in Tanzania and in any economy a critical policy and national issue. The cost of electricity in Tanzania has remained a central issue in the bid to achieve an affordable and efficient supply (i.e., financially viable electricity sub-sector) of energy.
Tanzania Electric Supply Company Limited (TANESCO) is a parastatal organization under the Ministry of Energy and Minerals.
The households electrified by solar photovoltaic technology are 30.4% [Rural Energy Agency April 2020]. As a total, biomass makes up close to 90% of the total primary energy consumption in Tanzania. Unfortunately, this leads to the deforestation of 100,000 h per year, of which only about a quarter is reforested.

The Kishapu Solar Power Station is a proposed 50 MW (67,000 hp) plant in . The power station is under development by (TANESCO), the national electricity monopoly utility company. The energy will be integrated into the national grid, also operated by TANESCO. The solar farm will be developed in phases to capacity of 150 megawatts. When completed and commissioned, it will be the largest, grid-read. [pdf]
So far, in Tanzania, solar energy is used as a source of power by 24.7% of the households with access to electricity. Tanzania’s Solar Energy potential A study by Ahmed et al in 2017 suggested that Tanzania has an annual technical solar power potential in Tanzania was estimated to be 31,482 TWh for CSP technology and 38,804 TWh for PV technology.
Sikubora – Sikubora originates from the USA, however, purely focuses on the Tanzanian market with it’s Pico Solar Home Systems. SolarGridTZ – SolarGrid is a Tanzanian company aiming to provide solar energy to 80% of the Tanzania population which does not have access to power yet.
Tanzania signed an agreement for the first solar power production plant, amounting to 50 MW in the Kishapu district of the Shinyanga region.
Tanzania has entered into an agreement to construct the country’s first-ever solar photovoltaic power station to feed into the national electricity grid. The contract was signed on 29th May 29 2023, in Dodoma by the Tanzania Electricity Corporation (TANESCO), in the presence of the Minister of Energy, Hon. January Makamba.
The solar farm is bordered on one side by the 220 kV Singida – Shinyanga High Voltage Power Line. The power station, which will be developed in phases, has a maximum generation capacity of the first phase of 50 megawatts. The solar farm helps Tanzania diversify its electricity generation mix with clean carbon dioxide -free energy.
The estimated cost for the first phase is TZS 109 billion, the works are expected to start in June 2023 and be completed within 12 months. During the event, the Minister of Energy acknowledged that this marks the first introduction of solar electricity into the national grid of Tanzania.
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