State approves 27 new power purchase agreements

DODOMA: Tanzania approved a record 27 new Power Purchase Agreements (PPAs) in the 2023/24 financial year, signaling rapid growth in private sector participation and efforts to diversify the country’s energy mix.

According to the latest report from the Energy and Water Utilities Regulatory Authority (EWURA), the country now has a total of 59 active PPAs as of June 2024 — the highest number in its history.

“These agreements are key to ensuring a reliable and diversified electricity supply,” said Dr. James Mwainyekule, Director General of EWURA. “They open the door for more private investment, especially in renewable energy, and reduce the burden on public financing.”

The PPAs span a range of energy sources, including natural gas, hydropower, solar, and biomass. Out of the 59 agreements, 20 are with operating power plants, 6 projects are under construction, and 33 are still in early development, seeking financing and permits.

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At the national launch of EWURA’s performance reports, Deputy Prime Minister and Minister for Energy Dr. Doto Biteko commended the pace and diversity of the approvals. “We are creating an enabling environment for investors. Through EWURA, the private sector has a broad opportunity to contribute to the development of the energy sector,” he said.

The report notes that PPA growth is supported by regulatory reforms, including standardized tariff models and faster approval processes, which have helped reduce entry barriers for independent power producers.

With power demand rising due to industrialization, urban growth, and electrification initiatives, the government sees private sector engagement as essential to achieving its Vision 2025 and National Energy Compact targets.