Tanesco's Kinyerezi gas power station. Tanzania is banking on
electricity generated from gas to bridge the power shortfall. PHOTO |
FILE
By ERICK KABENDERA
In Summary
- Galvanised by America’s move to withhold $472 million from the Millennium Challenge Account last year, the Tanzanian government is seeking to overhaul its energy legal and regulatory framework to attract investments in alternative sources of energy.
- Despite provision of solar energy to nearly 50 per cent of dispensaries in over 3,000 villages the government says lack of financial investment and technology hampered its efforts to expand energy services to 16,000 primary schools countrywide.
- Tanzania has discovered massive natural gas amounting to 1.9 trillion cubic feet, 200 million tonnes of uranium and 200 million tonnes of coal but it lacks the technology, finance and expertise to develop the resources which could help the government increase its energy efficiency.
Galvanised by America’s move to withhold $472 million from
the Millennium Challenge Account last year, the Tanzanian government is
seeking to overhaul its energy legal and regulatory framework to attract
investments in alternative sources of energy.
The board of the Millennium Challenge Corporation deferred a
vote over Tanzania’s eligibility to the funds meant for electrification.
It is suspected that this was because of the impasse in Zanzibar and
the arrests under the cyber crime law during October elections.
The overhaul may see some regulatory authorities linked to the
energy sector disbanded or merged, sources within the government say.
The review would enable the country achieve its ambitious plan
of increasing access to power to over 90 per cent of the rural
population by 2025.
Despite provision of solar energy to nearly 50 per cent of
dispensaries in over 3,000 villages the government says lack of
financial investment and technology hampered its efforts to expand
energy services to 16,000 primary schools countrywide.
The suspended $472 million grant was meant mainly to fund
electrification projects through the country’s rural electrification
agency, Rural Energy Agency.
Tanzania has discovered massive natural gas amounting to 1.9
trillion cubic feet, 200 million tonnes of uranium and 200 million
tonnes of coal but it lacks the technology, finance and expertise to
develop the resources which could help the government increase its
energy efficiency. The Prime Minister Kassim Majaliwa appealed to
investors to consider investing in the energy sector.
“The government has the goodwill to allow investors to operate
in Tanzania,” Mr Majaliwa said at the 51st Annual Meeting of the African
Development Bank (AfDB).
Despite recent government efforts to provide electricity to
rural areas, the rural electrification coverage is low in Tanzania with
only 11 per cent of the population having access to electricity.
AfDB says that about $3.5 billion will be needed to increase the
rural electrification ratio from 6.6 per cent to 36.6 per cent in rural
areas and the urban rate from 34.2 per cent to 75.7 per cent.
Although the prime minister did not disclose the laws and regulations the government was changing sources told The EastAfrican
that the country’s Chief Secretary, John Kijazi wrote a letter to
permanent secretaries on April 29 directing them to recommend government
agencies and bodies under the ministries that should be disbanded or
merged.
Ewura
After the Petroleum Act was passed last year, energy
stakeholders questioned some of the duties given to the Energy and Water
Utilities Regulatory Authority (Ewura) and a number of regulatory
bodies in the country.
The government is working on the National Energy Policy and Regulations that are likely to be finalised by end of the year.
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