Thursday, 29 May, 2025
Tanzania, the largest country in East Africa by land area, spans approximately 945,000 km2.[1] It is strategically located along the Indian Ocean, bordered by eight countries, and is endowed with diverse geographical features, including vast river systems, the Great Rift Valley, and significant renewable energy resources.
Tanzania is rich in various renewable energy resources, including geothermal, solar, wind, biomass, and mini hydro. The energy market in the country is primarily controlled by the state-owned Tanzania Electricity Supply Company Limited (TANESCO), which is responsible for generation, transmission, and distribution nationwide. With increasing energy demand driven by industrial activities, extractive operations, and domestic consumption, there are significant investment opportunities in the energy sector.
The country is working towards diversifying its electricity generation mix. As of December 2024, the country's total installed capacity stood at over 3 GW.[2] This capacity includes 2 GW from hydro (59.1 per cent), 1 GW from natural gas (35.2 per cent), around 100 MW from heavy fuel oil (HFO) and diesel (3 per cent), 5 MW from solar photovoltaics (0.1 per cent), and over 80 MW from biomass and co-generation (2.6 per cent).[3]
Tanzania is planning to diversify its power mix significantly by 2030, aiming to add 2,463 MW of generation capacity from solar PV, wind, natural gas, and geothermal resources. This initiative is part of the recently completed National Renewable Energy Strategy and Roadmap.[4]
Given the expected annual demand growth of 5 to 10 percent, Tanzania's strategic location at the boundary of the Eastern Africa Power Pool (EAPP) and the Southern African Power Pool (SAPP) provides vast opportunities for power trade. This strategic positioning allows Tanzania to access lower-cost power generation and other benefits.
The potential for producing low-cost hydrogen is particularly noteworthy. By leveraging its renewable energy resources, Tanzania can significantly boost its energy and agricultural industries.
[4] M300-AES-Compact-Tanzania.pdf
Tanzania is well-endowed with various renewable energy resources. The country has significant potential for hydropower and geothermal energy, which are already being utilized to some extent. Additionally, central and western Tanzania are ideal for solar and wind energy projects due to their strong solar radiation and wind conditions. These regions also have large, arid areas that are perfect for building extensive renewable energy facilities with minimal environmental impact.
Moreover, Tanzania is planning to develop a major new port at Bagamoyo. This port is expected to play a significant role in the green hydrogen sector by facilitating the production and export of green hydrogen, leveraging the country's abundant renewable energy resources.
As of 2025, Tanzania has not yet established specific hydrogen policies.
As of 2025, Tanzania has not yet established specific hydrogen regulations.
Tanzania is endowed with diverse renewable energy resources, ranging from biomass and mini-hydro to geothermal, solar, and wind.
Tanzania enjoys abundant sunshine, with annual sunshine hours ranging between 2,800 and 3,500 and global horizontal radiation levels of 4–7 kWh per m² per day. The central region, in particular, is rich in solar resources, which are being utilized for both off-grid and grid-connected solutions. As of now, approximately 6 MW of PV has been installed in the country. [1]
Tanzania has promising wind energy potential, particularly in the Kititimo and Makambako areas. Wind speeds in these regions are suitable for grid-scale electricity generation, with Kititimo averaging 9.9 miles per second and Makambako averaging 8.9 miles per second at a height of 30 meters. [2]
The country also has significant geothermal potential, particularly within the East African Rift Valley System. Estimates suggest that the country could generate over 650 MW of geothermal energy. Most of these prospects have been identified through surface manifestations like hot springs. [3]
As of 2024, Tanzania has not established facilities for manufacturing electrolysers.
The Zero Emissions Ship Technology Association (ZESTAs) and Tanzania’s Environment and Empowerment Movement (TEEMO) have signed a memorandum of understanding (MoU) to work together on developing green hydrogen shipping fuel and building the necessary capacity in Tanzania. [1]
This partnership aims to leverage Tanzania's renewable energy potential and strategic maritime position to support global efforts in decarbonizing the shipping industry. ZESTAs will provide technical expertise and global industry connections, while TEEMO will focus on stakeholder engagement and on-the-ground support.