Tanzania: Renewable Energy Investment Powers Country's Growth

Dar es Salaam — AS electricity demand continues to rise, Tanzania has stepped up investment in renewable energy under the Third Five-Year Development Plan (FYDP III) to expand electricity access, strengthen energy security and drive sustainable economic growth.

Under the plan, the government has invested heavily in hydropower, solar and wind energy projects to increase electricity generation and improve access to reliable power across the country. FYDP III also prioritises the development of other renewable energy sources, including geothermal and biogas, as part of efforts to diversify the energy mix, reduce dependence on conventional sources and support industrialisation.

The progress achieved under the plan underscores Tanzania's commitment to building a resilient and sustainable energy sector capable of meeting growing electricity demand while promoting environmental conservation. Investments made so far have expanded generation capacity, strengthened the national transmission network and increased electricity access in both urban and rural areas.

Presenting the Ministry of Energy's 2026/27 budget estimates in Parliament, Energy Minister Deogratius Ndejembi said the government is continuing to implement major electricity generation, transmission and distribution projects to ensure a reliable, secure and affordable power supply nationwide.

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He said the energy sector plays a critical role in ensuring a reliable and secure electricity supply to support economic and social development through projects implemented in urban centres, rural areas and villages in collaboration with various stakeholders, including the private sector.

He said one of the government's key achievements under FYDP III has been diversifying the country's energy mix through investments in renewable energy projects that complement existing electricity generation sources.

These investments are aimed at increasing electricity production, improving supply reliability and advancing Tanzania's longterm development agenda.

Among the flagship projects is the 150-megawatt Kishapu Solar Power Project in Shinyanga Region. Ndejembi said the first phase, which generates 50 megawatts at a cost of 118.68bn/-, has been completed and connected to the National Grid.

He described the project as a historic milestone, being the first utility-scale solar power plant implemented directly by the government. Beyond expanding the country's electricity generation capacity, he said, the project demonstrates Tanzania's commitment to increasing power production from clean and environmentally sustainable sources.

According to the minister, the project marks a significant step in the country's transition to renewable energy and reflects the government's resolve to invest in sustainable technologies capable of supporting long-term economic growth.

Alongside renewable energy investments, the government has continued expanding natural gas-fired electricity generation to ensure a stable power supply as renewable energy capacity grows.

Ndejembi said implementation of the 185-megawatt Kinyerezi I Extension Natural Gas Power Project has made significant progress. The project includes the construction of power generation facilities and the upgrading of the 132-kilovolt transmission network linking Kinyerezi, Gongolamboto and Mbagala.

By March 2026, he said, the power generation component had reached 99 per cent completion, while upgrading of the transmission system stood at 90.4 per cent. Major works completed include the installation and commissioning of transformers, upgrading transmission lines and strengthening electricity evacuation infrastructure to accommodate increased power generation.

Once completed, the project is expected to enhance electricity supply, improve grid reliability and meet rising power demand in Dar es Salaam and neighbouring areas, where industrial and commercial activities continue to expand.

Preparations are also underway for another strategic investment, the 300-megawatt Mtwara Natural Gas Power Project.

The minister said the government has begun compensating residents affected by the project as preparations for its implementation gather pace.

Meanwhile, the Tanzania Electric Supply Company Limited (TANESCO) has strengthened electricity generation in Lindi and Mtwara regions by commissioning an additional 20-megawatt gas-fired power plant. The new facility has increased available generation capacity from 57.5 megawatts to 77.9 megawatts, well above the regions' combined demand of about 38.5 megawatts.

While natural gas remains a key pillar of Tanzania's electricity supply, the government is accelerating investments in renewable energy to diversify power sources, enhance energy security and reduce dependence on conventional generation.

One of the flagship projects under preparation is the 100-megawatt Kititimo Wind Power Project in Singida Region. Ndejembi said the project will boost the contribution of renewable energy to the National Grid while supporting the country's transition to cleaner sources of electricity.

He said feasibility studies are progressing well, with TANESCO having signed a Memorandum of Understanding (MoU) with a strategic investor to facilitate implementation. Once completed, the Kititimo project will rank among Tanzania's largest wind power investments and significantly strengthen the country's renewable energy portfolio.

The government has also advanced preparations for another major renewable energy project the 130-megawatt Zuzu Solar Power Project in Dodoma Region.

Mr Ndejembi said TANESCO has completed the project's feasibility study and signed an MoU with Mirambo Power Limited to begin generating an initial 15 megawatts before expanding to full capacity.

He said due diligence on the investor is underway ahead of construction, adding that the project will enhance electricity supply while further increasing the country's renewable energy generation capacity. Preparations are also underway for a 100-megawatt solar power plant in Same District, Kilimanjaro Region. The project is being developed by TANESCO in partnership with Sweden's development finance institution, Swedfund, with feasibility studies currently in progress.

to the minister, the projects reflect the government's commitment to expanding renewable energy investments as Tanzania moves towards universal electricity access and a more resilient, diversified and environmentally sustainable energy sector.

Beyond infrastructure development, the government is strengthening the policy framework needed to accelerate the country's clean energy transition. Long-term strategies are being implemented to increase the role of renewable energy in driving economic transformation and addressing climate change.

Among the key initiatives is the National Energy Compact (Mission 300), a five-year programme running from 2025 to 2030 that aims to expand electricity access, increase renewable energy generation and attract greater private sector investment into the energy industry.

The government has also begun implementing the Renewable Energy Strategy and its Implementation Roadmap (2024- 2034), which seeks to expand renewable energy generation, diversify electricity sources and ensure the sector supports sustainable economic growth while responding to climate and environmental challenges.

Rural Energy Agency (REA) Director of Renewable Energy and Alternative Energy Technologies, Engineer Advera Mwijage said one of the key lessons from implementing Vision 2025 was the importance of protecting water catchment areas that sustain hydropower generation.

She said REA is working with communities to raise awareness about conserving water sources while promoting alternative income-generating activities to reduce farming and other environmentally destructive practices in protected catchment areas.

According to Mwijage, safeguarding natural resources is essential for maintaining reliable electricity generation and achieving Tanzania's long-term renewable energy ambitions.

The momentum is expected to continue under the Tanzania Development Vision 2050, which identifies science, technology and innovation as key drivers of productivity, efficiency and sustainable economic growth.

The Vision places strong emphasis on investing in renewable energy technologies, particularly solar power and biogas, to meet rising energy demand, expand access to affordable and reliable electricity in rural areas and promote environmental sustainability.

It also advocates the application of biotechnology and other modern technologies across key sectors including agriculture, livestock, mining, manufacturing, health and tourism to boost productivity, reduce production costs, improve competitiveness and enhance the quality of life of Tanzanians.

The impact of the government's renewable energy investments is already being felt across the country, particularly in rural communities where access to electricity has improved significantly in recent years.

Residents say renewable energy projects have transformed livelihoods by bringing electricity to homes, schools and health facilities, creating new business opportunities and improving the delivery of public services.

A resident of Nachingwea District in Lindi Region, Athuman Mluchila said Tanzania has made remarkable progress in expanding solar energy infrastructure, especially in rural areas that previously had limited access to electricity.

He said continued investment in renewable energy has increased electricity access for households, schools and health facilities while stimulating economic activity in underserved communities.

"Reliable electricity has enabled many entrepreneurs to expand their businesses, improved access to essential public services and raised the living standards of many families," Mluchila said.

Radi Mabuga from Bariadi District in Shinyanga Region believes Tanzania has enormous renewable energy potential that can significantly transform the economy if investment continues.

He said sustained investment in renewable energy could attract billions of dollars in capital, create thousands of jobs and further strengthen the country's energy security.

Alongside renewable energy, Tanzania is also advancing natural gas development as part of a broader strategy to build a diversified and resilient energy sector.

The Tanzania Petroleum Development Corporation (TPDC) says progress in natural gas development, including the country's Liquefied Natural Gas (LNG) project, will complement renewable energy investments by ensuring a secure and balanced energy system capable of supporting industrialisation and regional economic integration.

TPDC Board Chairman, Ambassador Ombeni Sefue said Tanzania's sustained investment in the energy sector has positioned the country as an emerging regional energy hub.

He said strategic projects, including the proposed natural gas pipeline to Uganda and the White Products Pipeline, will strengthen regional integration while creating new opportunities for trade and investment.

Energy experts explained that while renewable energy will remain at the centre of Tanzania's long-term development strategy, combining it with natural gas will provide a balanced energy mix capable of meeting growing electricity demand while ensuring reliability, affordability and energy security.

The achievements recorded under FYDP III demonstrate that Tanzania has made substantial progress in expanding renewable energy through strategic investments in solar, wind and other clean energy technologies.

Coupled with supportive policies under Vision 2050 and complementary investments in natural gas, the country is laying a strong foundation for a resilient, diversified and sustainable energy sector that will power industrialisation, improve livelihoods and drive long-term economic transformation.

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