Tanesco Solar Power Project and Grid Upgrade

AFD supports the securing of Tanzania’s electricity supply by supporting the construction of the country’s first solar photovoltaic power plant connected to the grid. This support will help prepare Tanesco for the introduction of intermittent energy on its network while modernizing it.

Context

Tanzania has significant energy resources with largely untapped potential. In 2021, the installed and grid-connected generation capacity amounted to 1566 megawatts from 36% hydro, 57% natural gas, 6% oil and 1% biomass. Tanzania has an excellent solar and wind field, which is planned to be exploited through public and private investment (with the mobilization of independent producers (IPP). In this context, investments in network modernization are essential to manage the intermittent nature of these energies.

To increase its energy supply and lower its average cost of production, Tanzania’s strategy aims to develop the country’s energy infrastructure to improve its efficiency (reduction of losses, increase of the reliability of the supply, extension of the network), increase the production capacity to meet increasing demand and diversify the country’s energy mix by making better use of national resources.

Description

The project aims to secure Tanzania’s electricity supply by helping to increase generation capacity and diversify its energy mix through the development of renewable energies (first 50 megawatts phase of a 150 megawatts solar programme) and increase the reliability of the national electricity system. The exploitation of solar energy potential should enable the country to increase its energy supply and energy independence, lower the cost price of energy and help limit its greenhouse gas emissions.

Impacts