EWURA highlights 2023/24 electricity sector transformation

DAR ES SALAAM: TANZANIA is undergoing a silent but powerful transformation in its energy sector.

The 2023/24 financial year marked a significant turning point, characterised by aggressive expansion in generation capacity, improvements in reliability, massive investments in infrastructure and increased participation by the private sector, a new report published by the sector’s regulator shows.

The Energy and Water Utilities Regulatory Authority (EWURA) released on Wednesday the Electricity Sub-Sector Regulatory Performance Report for the financial year 2023/24 maintaining that the achievements are “reshaping the country’s power landscape and bringing new optimism” for both citizens and investors. Such transformations were formally acknowledged during the launch of three regulatory performance reports—covering electricity, oil and natural gas—on April 9, 2025, in Dodoma.

The event was presided over by Deputy Prime Minister and Minister for Energy, Dr Doto Biteko.

Speaking to some government officials, regulators, development partners and industry players, Dr Biteko emphasised the government’s unwavering commitment to expanding access to energy and improving the quality of electricity services across the country.

“We have witnessed huge transformation and development under President Samia Suluhu Hassan administration. Such developments include the energy sector,” he said.

He also highlighted the completion of flagship projects, improved regulatory frameworks and the integration of clean energy solutions as hallmarks of the administration’s energy agenda.

According to the Electricity Sub-Sector Regulatory Performance Report for the financial year 2023/24, published by EWURA, Tanzania increased its installed power generation capacity by 26.2 per cent—from 1,911.46 megawatts in 2022/23 to 2,411.33 megawatts.

This expansion is largely attributed to the phased commissioning of the Julius Nyerere Hydropower Project, a monumental 2,115 MW project along the Rufiji River that now stands as one of the largest hydropower facilities on the continent.

The dam is not just an engineering marvel but a cornerstone in the nation’s effort to guarantee sustainable and sufficient electricity supply.

“These generation gains were complemented by significant improvements in the national grid,” the Deputy Premier added.

The length of electricity distribution lines grew by 24,521 kilometres, a 15 per cent increase from the previous year, bringing the total to 188,266 kilometres.

Similarly, the number of customers connected to the national grid rose by 12.7 per cent—from 4.42 million in the previous year to nearly 5 million.

The latest report highlights that the expansion in connectivity means more households, businesses and institutions in both urban and rural areas are gaining reliable access to electricity, a crucial driver of socio-economic development.

Economists and observers have suggested that reliability, long a sore point in Tanzania’s electricity supply, saw remarkable improvement during the period under review.

The System Average Interruption Frequency Index (SAIFI), which measures the average number of interruptions experienced by a customer in a year, dropped from 26 to 14—an improvement of 48 per cent.

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Meanwhile, the System Average Interruption Duration Index (SAIDI), which gauges the total duration of power interruptions for an average customer, fell from 1,536 minutes to 554 minutes, a reduction of 64 per cent.

These improvements signal a new era of performance for the national utility, Tanzania Electric Supply Company Limited (TANESCO) and are reflective of both public and private investments in grid modernisation and maintenance.

Mwanaidi Juma, a private energy consultant, admitted that private sector involvement in the electricity sub-sector has also intensified. According to the new report, a total of 39 private power generation projects were in various stages of development during the 2023/24 financial year, contributing an additional 179.59 MW to the national grid.

EWURA approved 27 new Power Purchase Agreements (PPAs) in that year alone, bringing the total to 59 active PPAs.

These agreements cover a range of technologies including solar, hydro and biomass, and are a testament to the regulator’s commitment to diversifying the energy mix and promoting competition in the market.

EWURA’s Board Chairman Prof Mark Mwandosya, commended both public and private stakeholders for their role in transforming the sector.

“These investments have ensured the security of electricity supply, laying the foundation for economic and social growth,” he said.

The role of private actors, he added, was particularly crucial in fostering innovation, improving efficiency and reducing the financial burden on the government. Indeed, “these achievements did not occur in isolation. They were supported by a comprehensive regulatory and policy framework that EWURA has been building over the years,” he said.

The authority issued 1,572 new licences and permits in 2023/24, including generation, transmission, distribution and installation permits.

By June 2024, there were a total of 9,059 active licences in the electricity supply industry.

This regulatory clarity has been instrumental in attracting new investors, streamlining service delivery and ensuring consumer protection.

The broader development context cannot be ignored. As Tanzania pushes toward industrialisation and middle-income status under Vision 2025, energy has become both a catalyst and a prerequisite.

“Energy is a catalyst for industrial growth, the improvement of social services such as health, water and education,” said Dr Biteko.

The government has also aligned its electricity goals with international development priorities, including the Sustainable Development Goals, particularly Goal 7 which focuses on affordable and clean energy.

Despite the progress, the sector still faces challenges. The government acknowledged prolonged droughts affected hydropower generation, revealing the vulnerability of water-dependent infrastructure.

The growing demand driven by new electric trains – SGR, increased industrialisation and rising electric vehicle usage is also putting pressure on supply systems.

Financial constraints, technological gaps and logistical hurdles further complicate implementation, according to energy experts.

However, the outlook remains optimistic. The National Energy Compact, praised at the Africa Heads of State Energy Summit in January 2025, outlines a roadmap to mobilise 12.9 billion US dollars in investment.

Of this, 4.39 billion US dollars is expected to come from the private sector, with the rest supported by government and development partners.

The compact aims to expand generation, improve reliability and extend grid coverage to underserved regions.

At the end of the launch event in Dodoma, Dr Biteko urged stakeholders to read the reports carefully and use the data to make informed decisions that would guide investments, regulatory improvements and consumer engagement.

“By partnering with the private sector, we will be able to achieve our goals of having a strong, resilient, sustainable and reliable energy sector,” he affirmed.

Tanzania’s electricity sector is no longer simply trying to keep the lights on. It is building a resilient and inclusive foundation for the future—one kilowatt at a time.