Harnessing the Tanzania Renewable Energy Potential: Industry Overview and Leading Projects

Jul 29, 2024

By Erik Deitersen, ABiQ

By Erik Deitersen, ABiQ

Managing Director

Key Drivers for Tanzania Renewable Energy

The Tanzania renewable energy sector is set to expand significantly, driven by a flourishing economy, a growing population, and a global effort to fight climate change.

In the year 2000, Tanzania was home to a population of 34 million people and achieved a total economic output (GDP) of $18 billion. In 2024, Tanzania has grown to almost 70 million people and a GDP of $80 billion. By 2029, the IMF expects economic output to reach $125 billion with average annual GDP growth above 6%. GDP per capita (PPP) is predicted to grow from $3750 in 2024 to $4800 in 2029. The UN predicts that Tanzania’s population will likely increase to 130 million by 2050, providing ample opportunities for further economic expansion.

Landscape of Tanzania Renewable Energy Projects

Tanzania is currently home to 11 large, ongoing, and upcoming renewable energy generation projects. They include utility-scale projects in hydro, the leading category, solar, wind, and geothermal power.  The total value of these projects stands at approximately $10 billion. While the Tanzanian government is the sector’s main developer, leading contractors are mostly international firms from Asia, Europe, and other African countries.

Within the East African community, Tanzania ranks 3rd in the total number of renewable energy generation, after Kenya and the DRC.

Top 2 Upcoming Projects in Tanzania Renewable Energy

Harnessing Hydropower Potential: the Rumakali Hydropower Plant

The Rumakali Hydropower Plant project in Southwestern Tanzania includes the construction of a 222 MW power plant with a transmission line. The total project value is estimated at $635 million. The project is currently in the design phase, while the developer Tanesco is also searching for additional funding. Construction is scheduled to start in 2025, with completion in 2029.

Geothermal Energy in Tanzania: The Natron Geothermal Project

The Natron Geothermal Project derives its name from its location at Lake Natron, close to Arusha. The 200 MW power plant project is valued at approximately $200 million. The developer, Tanzania Geothermal Development Company, a subsidiary of Tanesco, is currently looking for consultants for the project.

 

Conclusion and where to learn more

Be it for consultants, financiers, or product suppliers, the Tanzania renewable energy market is ripe with opportunities. To learn more about opportunities in power sector projects in Africa, have a look at this article. If renewable energy in particular interests you, you may be interested in one of Namibia’s largest hydrogen projects. To browse ABiQ’s wealth of data, visit our blog or sign-up for your Free Trial of our platform.

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