LONDON--(BUSINESS WIRE)--Mass generation of electricity in Tanzania is controlled by state owned utility, TANESCO, but significant growth in demand has left the organisation unable to cope, according to a new report on companiesandmarkets.com. To meet Tanzanian electricity demand, investment is sought on a regional and international level, providing distinct opportunities for independent power generators.
Overview of Tanzanian Electricity Industry
Increased demand from the country’s growing population and industrial sectors has prompted growth in the Tanzanian electricity industry, with input sought from private companies such as Aggrekko – a generator rental and power generation equipment provider.
Tanzania’s resource-rich landscape has attracted global mining and manufacturing companies, which place significant demands on the country’s electricity infrastructure which are only likely to increase. Mining companies are looking to connect to the national grid system, which will bolster the Tanzanian electricity market.
Electricity tariffs are low in Tanzania, and while TANESCO tried to increase charges by over 20% in 2011, only an 18.5% increase was agreed, which may restrain growth of Tanzania’s electricity market.
Overseas investment is increasing, following policy changes implemented by the Tanzanian government and Energy and Water Utilities Regulatory Authority. China’s Sichuan Hongda is making an investment of $3 bln to build a power plant with 600 MW capacity, and a coal mine to provide feedstock. Other direct foreign investments in Tanzania are expected to follow.
Maintenance, repair and overhaul (MRO) of new and existing Tanzanian electricity infrastructure will create work for original equipment manufacturers and engineering companies, encouraging further market growth.
The Tanzanian electricity market is discussed at length within the 61 page report, including information on industry structure, key players, challenges and drivers/obstacles to market growth. Analysis of existing Tanzanian electricity infrastructure is provided, as well as forecast electricity demand. The report also outlines the best opportunities for investment, taking into consideration current and future legislation and planned projects.
The Tanzanian electricity generation, Tanzanian electricity transmission and Tanzanian electricity distribution segments are examined in detail.