2.6 Diversification of Power Generation Resources
To improve the security of supply, the GoT is
diversifying the sources of electricity generation to include natural gas, coal, hydro, uranium
and renewable energies. Tanzania
also intends to participate effectively in the
Eastern Africa Power Pool (EAPP), East Africa Community Power Pool (EACPP) as well
as the Southern Africa Power Pool (SAPP). The ESI reforms will spearhead
investment in various generation sources to meet both present and future demand. Envisaged
growth in generation is shown in the Table 1 below.
Tanzania aspires to raise the per capita income from USD
640 (April 2014) to at least
USD 3,000 by 2025. Its population is expected to increase
to at least 69.5 million by 20253. To realize the per capita income target, the GDP
must grow on average by 15 percent per annum to raise the country GDP from about USD
32 billion (April 2014) to USD 181 billion by 2025. For Tanzania to become a semi-industrialized country and
effectively participate in the global economy, growth in productive sector of the
economy including manufacturing, mining, information and communication technologies,
trade, tourism and agriculture is important. Such growth will require enormous investment
in the power infrastructure. This will require about 764.5 MW of new capacities to be
added annually. Figure 1 provides Projected Trend for Supply Capacity by 2025.