TANZANIA’S energy sector is riding a wave of major expansion, but even in the glow of progress, critical challenges are emerging.
Here, the Energy and Water Utilities Regulatory Authority (EWURA), at the centre of this transformation, is now guiding the country through a crucial period of transition, focusing on resilience, investment and long-term sustainability.
In the 2023/24 financial year, Tanzania made remarkable progress in electricity access and infrastructure.
The country’s installed generation capacity rose by more than 26 per cent, distribution lines expanded by over 24,000 kilometres and more than half a million new customers were connected.
These achievements, highlighted in EWURA’s performance report launched this week, reflect a growing sector. But rapid growth brings new pressures.
Droughts disrupted hydropower output, industrial demand rose sharply and grid reliability remained a concern in some areas. At the launch event in Dodoma, Deputy Prime Minister and Minister for Energy, Dr Doto Biteko, was direct: “Despite the Government’s efforts to ensure reliable access to energy, the sector still faces various challenges.”
He pointed to climate stress, aging infrastructure and funding gaps as urgent concerns.
The most immediate challenge lies in generation vulnerability. Although hydropower forms a core part of Tanzania’s energy mix, its reliability is declining due to erratic rainfall.
Even the landmark Julius Nyerere Hydropower Project—at 2,115 MW—faces risks from prolonged drought. EWURA’s report confirms that diversification is now critical.
The current generation mix includes 67.1 per cent natural gas and 32.4 per cent hydropower, with minimal input from biomass and liquid fuels.
The government and private developers are slowly moving toward renewables like solar and wind to reduce overreliance on weather-dependent sources. In 2023/24, 39 private energy projects contributed nearly 180 megawatts in additional capacity.
At the heart of Tanzania’s strategy is the National Energy Compact—a 12.9 billion US dollars roadmap aimed at achieving universal access by 2030.
Recognised at the Africa Heads of State Energy Summit, the Compact calls for both public and private investment.
EWURA’s regulatory reforms have created a more attractive environment for investors, including standardised tariffs for small power producers and streamlined licensing processes. But funding isn’t the only concern.
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The grid, though expanding, is still under pressure.
While EWURA’s report notes a 48 per cent drop in average outage frequency and a 64 per cent reduction in duration, blackouts remain a reality in parts of the country.
Voltage fluctuations, limited rural access and overloaded substations call for ongoing upgrades. System stability is especially important as electric demand grows.
Sectors like electric mobility, industrial manufacturing and urban housing are all consuming more power.
According to EWURA Director General Dr James Mwainyekule, adapting to this demand means improving both technology and strategy.
“Our role is not only to regulate but also to facilitate innovation and accountability,” he said during the report launch. One area gaining momentum is clean cooking.
Tanzania’s long-standing dependence on firewood and charcoal is a health and environmental burden.
In response, the government launched the National Strategy for Clean Cooking Energy 2024–2034.
The goal: Move 80 per cent of households to cleaner fuels like LPG and electricity by 2034. EWURA has simplified licensing for LPG distributors and helped drive awareness and uptake.
Private sector participation is central to the clean cooking push. Companies are building distribution infrastructure, while EWURA ensures safety, pricing and supply regulations are upheld.
Dr Biteko praised these efforts, calling President Samia Suluhu Hassan “a champion of clean energy adoption,” both nationally and across the continent.
EWURA’s regulatory agility also extends to offgrid solutions. In 2023/24, 13 small-scale energy entities registered to produce electricity below 1 MW—many in remote or underserved areas.
These mini-grid operators are essential in places where TANESCO’s grid hasn’t yet reached. Through licensing, tariff guidance and compliance support, EWURA plays an enabling role. But challenges remain.
Capital access for smaller operators is limited, skilled labour in the sector is still developing and climate change continues to complicate longterm planning. EWURA’s report calls for stronger public-private partnerships and a national commitment to training local experts in energy engineering, regulation and system management. Still, optimism prevails.
The Compact offers a clear structure. The report outlines priorities: Grid resilience, renewable integration, clean cooking scale-up and customer protection. Progress is tangible.
What’s needed now is consistency, collaboration and continuous adaptation. From power plants along the Rufiji River to solar installations in Singida and LPG distribution in urban neighbourhoods, Tanzania’s energy journey is a story of growth tempered by awareness.
And under EWURA’s guidance, that story is being shaped into a future-ready system—one that is smarter, fairer and more secure.
