According to the Power System Master Plan (PSMP 2016 - 2040) released by the Ministry of Energy of Tanzania, the eastern African country will need to invest US$46.2bn over the next 20 years to revamp its energy infrastructures and meet rising electricity demand.
Most of the costs (80%, i.e. US$37bn) are related to power generation investments, as the country aims to use its vast coal and gas reserves to boost installed capacity from around 1,500 MW in 2014 (nearly 1,650 MW in 2015) to 10,000 MW over the next decade. The remainder will be invested in power transmission and distribution, to raise the electrification rate from around 40% to 90% by 2035.
Tanzania Electric Supply Company (TANESCO) is seeking a US$200m loan from the World Bank to cover its losses and start reforms; in December 2016, the energy regulator approved an 8.53% price increase, which is less than half of the increase requested by the company.
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