Tanzania’s energy system has entered a new period. For many years, the country depended mainly on domestic natural gas and older hydropower stations, while limited grid capacity slowed industrial growth and left many households without a connection. The completion of the 2,115-megawatt Julius Nyerere Hydropower Plant changed that balance. Tanzania now has more generating capacity, but its larger challenge remains: moving electricity across a vast country, connecting homes and businesses, and reducing dependence on charcoal, firewood and imported petroleum.
The national energy story is therefore not simply about adding power plants. It is about turning natural resources, major infrastructure and regional trade routes into reliable energy for a growing economy.
The Julius Nyerere Project Has Redrawn Tanzania’s Power Map
The most important recent change in Tanzania’s electricity sector is the Julius Nyerere Hydropower Plant on the Rufiji River. Fully commissioned in March 2025, the project added 2,115 megawatts of capacity through nine generating units. It is much larger than Tanzania’s older hydropower stations and has shifted the country from a period of limited supply toward one of potential surplus capacity.
By December 2025, Tanzania’s regulated electricity system recorded more than 4,500 megawatts when main-grid generation, off-grid plants, private self-generation and cross-border imports were considered. Maximum demand was about 2,500 megawatts. This gives Tanzania more room to support mining, manufacturing, urban growth and rural electrification than it had only a few years earlier.
During the second half of 2025, hydropower supplied the largest share of electricity generation, followed by natural gas. This was a major reversal from the years when gas-fired plants regularly dominated the national mix.
The new dam is important for more than its size. It gives Tanzania a large domestic source of electricity that does not require imported fuel. It can reduce the need for expensive diesel generation and provide power for future industrial projects. It also supports flood management and controlled water flows.
However, one large project cannot solve every problem. Hydropower output still depends on water conditions, plant maintenance and the ability of transmission networks to carry power from the Rufiji basin to demand centres. Tanzania must now ensure that the grid develops as quickly as its generating capacity.
Natural Gas Built the Modern Electricity System
Before the Julius Nyerere project, domestic natural gas was the foundation of Tanzania’s modern power sector. Gas from Songo Songo Island and Mnazi Bay allowed the country to replace part of its imported liquid-fuel generation with a local resource.
The Songo Songo field began commercial production in 2004. Mnazi Bay followed later and became another major supply centre in southern Tanzania. Processing plants and pipelines carry gas north toward Dar es Salaam, where it feeds the Kinyerezi, Ubungo and Tegeta power stations. Gas also supplies industrial customers in sectors such as cement, steel, glass, food production and ceramics.
Electricity generation remains the largest use of Tanzanian natural gas. In the 2023/24 financial year, power plants consumed more than 85 percent of marketed gas. Industrial users accounted for most of the remainder, while transport, commercial buildings and households used much smaller volumes.
Tanzania is also developing compressed natural gas as a transport fuel. Filling stations in Dar es Salaam and Mtwara supply buses, trucks and private vehicles. The market remains small compared with diesel and petrol, but CNG offers Tanzania a way to use domestic gas while reducing its petroleum import bill.
The long-term concern is supply. Songo Songo and Mnazi Bay are mature fields, and production from existing wells will not expand forever. The government is therefore supporting new development, including the Ntorya gas field and a planned pipeline to the Madimba processing system.
Tanzania also has large deep-water gas discoveries offshore. Official records identify roughly 47 trillion cubic feet of discoveries made between 2010 and 2014. These resources have supported plans for a liquefied natural gas export industry. However, offshore LNG would require very large investment, long contracts and major coastal infrastructure. For the near term, Tanzania’s most practical gas strategy is to secure domestic supply for electricity, industry, fertiliser, transport and clean cooking.
Coal Remains an Industrial Fuel Rather Than a Grid Foundation
Tanzania has significant coal resources, especially in the southern and western parts of the country. Important coal areas include Kiwira in Songwe, Ngaka in Ruvuma and the Mchuchuma area in Njombe. Coal has often appeared in national plans as a possible fuel for power generation and industrial development.
In practice, coal has not become the foundation of Tanzania’s national electricity grid. Hydropower and natural gas have remained more important, while financing large new coal stations has become difficult. Most current coal use is connected to industry rather than public electricity supply.
Cement factories, lime producers and other heavy industrial plants use coal for high-temperature heat. Some private companies also operate small coal-fired plants for their own electricity needs. By late 2025, private coal generation for self-use represented only a small part of Tanzania’s total installed capacity.
The Kiwira mine remains part of the government’s coal strategy, and state-owned STAMICO has worked to improve production and coal processing. Domestic coal can reduce the need for imported industrial fuels and support jobs in mining regions. It may also serve export markets in neighbouring countries.
Coal is therefore likely to remain present in Tanzania’s energy economy, but mainly as a specialised industrial resource. Its role in national electricity generation is limited, especially after the expansion of hydropower and the continued availability of natural gas.
Oil Imports Power Transport, While EACOP Changes Tanzania’s Regional Role
Tanzania does not currently produce crude oil on a commercial scale. Its petrol, diesel, jet fuel, kerosene and fuel oil needs are met mainly through imports. This makes petroleum one of the country’s largest areas of exposure to international prices and foreign exchange pressure.
During the 2023/24 financial year, Tanzania imported more than 4.3 billion litres of petroleum products for domestic use. Demand was supported by road transport, mining, construction, agriculture, aviation and the expansion of commercial activity. Tanzania also handled large transit volumes for landlocked neighbours, giving its ports and fuel-storage system a regional role.
Dar es Salaam is the main petroleum entry point, while Tanga and Mtwara also support imports and distribution. Fuel is moved inland by road, rail and storage networks. The expansion of rural filling stations has improved access along newer roads, although transport distances continue to create regional price differences.
The East African Crude Oil Pipeline will give Tanzania a different position in the oil industry. The 1,443-kilometre pipeline is designed to carry crude from Uganda’s Lake Albert fields to a marine export terminal at Chongoleani, near Tanga. About 1,147 kilometres of the route are inside Tanzania, and the system is designed for peak capacity of 246,000 barrels per day.
By February 2026, the developer reported that the project was approximately 81 percent complete. Once operating, EACOP will make Tanzania an important crude-oil transit and export route. It will create pipeline, storage, port and service activity, but it will not make Tanzania a major producer of its own crude oil. The country will still depend on imported refined fuels unless domestic discoveries or refining capacity change that position.
Tanzania Has More Power, but the Grid Must Reach More Customers
Generation is only one part of Tanzania’s electricity challenge. The country covers a large area, with major cities, mining districts, farming regions, islands and remote communities separated by long distances. Building transmission and distribution infrastructure is therefore expensive and technically difficult.
TANESCO remains the central institution in the sector. It operates the national transmission system, manages the main grid, distributes power and purchases electricity from private producers. By the end of 2025, Tanzania had more than 8,300 kilometres of transmission infrastructure and over 221,000 kilometres of distribution lines.
Large transmission projects are needed to move power from the Rufiji basin and southern gas region toward Dar es Salaam, Dodoma, Mwanza, Arusha and other demand centres. Stronger links are also needed for mining and industrial areas that require steady, high-voltage supply.
Tanzania has made major progress in extending electricity infrastructure to villages. The grid has reached nearly every village, but physical grid coverage is not the same as household access. A power line may pass through a community while many families remain unconnected because of connection costs, house wiring needs, low incomes or limited local distribution.
World Bank data showed national electricity access at about 46 percent in 2022, even after years of rapid grid expansion. The difference between village coverage and household connections explains why rural electrification remains a national priority.
In remote areas, extending the main grid may not be the cheapest answer. Solar home systems, mini-grids and stand-alone systems can serve villages where distance, terrain or low population density make conventional expansion difficult. The next phase of electrification must therefore combine the national grid with decentralised power.
Solar, Wind and Geothermal Power Are Still at an Early Stage
Tanzania has strong renewable energy resources beyond large hydropower. Its location near the equator provides high solar radiation across much of the country. Wind resources exist in the central regions, highlands and parts of the coast, while the East African Rift creates geothermal potential.
Despite these resources, solar and wind still supply only a small share of grid electricity. Tanzania’s large hydropower and gas investments have developed more quickly than utility-scale solar, wind and geothermal projects.
Solar energy has already become important outside the main grid. Solar home systems provide lighting, phone charging and basic appliance use in rural communities. Solar installations also support clinics, schools, water pumps, farms, tourism sites and telecommunications towers. These smaller systems have often reached customers faster than large power stations.
Utility-scale solar could play a different role. Daytime solar output matches commercial demand and can preserve water in hydropower reservoirs. It can also reduce gas consumption during daylight hours. Projects such as the Kishapu solar development indicate a gradual move toward larger installations, although transmission access and finance remain important limits.
Wind power has developed more slowly. Tanzania has small operating wind capacity, but larger projects have faced delays related to finance, grid connection and project agreements. The best wind areas are not always close to major transmission lines, which raises development costs.
Geothermal energy remains mainly at the exploration and planning stage. Potential areas are connected to the Rift Valley system, including locations near Mbeya, Arusha and the Lake Natron region. Geothermal plants could provide steady power that does not depend on rainfall or daylight, but exploration wells are expensive and resource risk is high.
Tanzania’s National Renewable Energy Strategy for 2024–2034 aims to move these technologies from isolated projects toward a wider national market. Hydropower will remain the largest renewable source, but solar, wind, geothermal and biomass can make the system more diverse.
Nuclear Power Is a Long-Term Plan, Not a Current Energy Source
Tanzania does not operate a nuclear power plant. There are no commercial reactors producing electricity, and nuclear energy does not currently contribute to the national grid.
The country does have nuclear institutions and experience with peaceful nuclear technology. The Tanzania Atomic Energy Commission regulates activities involving radiation and supports applications in medicine, agriculture, research, mining and industry. Tanzania also works with the International Atomic Energy Agency on safety, security, legal capacity and technical training.
Interest in nuclear electricity is connected to long-term demand growth and Tanzania’s uranium resources. National electricity planning documents include the possibility of approximately 480 megawatts of uranium-fuelled generation by 2044. Tanzania has also discussed developing uranium mining and processing as part of its mineral strategy.
These plans should be understood as long-range preparation rather than a firm reactor construction programme. A nuclear project would require a clear legal system, an independent safety regulator, trained workers, grid studies, waste planning, public consultation and several billion dollars in finance.
Tanzania currently has less expensive and more immediate options in hydropower, gas, solar, wind and grid expansion. Nuclear power may become relevant if industrial electricity demand rises sharply, but it is not a near-term answer to rural access or distribution problems.
Firewood and Charcoal Remain Tanzania’s Largest Household Energy Issue
Electricity statistics do not show the full Tanzanian energy system. For millions of households, energy is still mainly about cooking rather than electric power.
Mainland household data from 2019/20 showed that 64 percent of households used firewood as their main cooking source and 26 percent used charcoal. LPG accounted for about 5 percent, while electricity represented only 3 percent. This means roughly nine out of ten households depended mainly on wood-based fuels.
The continued use of firewood and charcoal has economic, environmental and social effects. Fuel collection takes time, while charcoal production places pressure on forests around growing towns. Smoke from traditional stoves affects indoor air quality, especially for people who spend the most time preparing food.
Tanzania’s National Clean Cooking Strategy aims for 80 percent of the population to use clean cooking energy by 2034. The transition is expected to use several technologies rather than one national solution. LPG is expanding in urban areas. Electricity may become more attractive as supply improves. Natural gas could serve customers close to pipelines, while biogas, ethanol and efficient biomass stoves may be more practical in other locations.
LPG imports rose strongly in 2023/24, reaching more than 403,000 metric tons. This suggests that cleaner cooking fuels are gaining ground, but affordability and distribution remain barriers. Many households also combine fuels, using LPG or electricity for quick meals while keeping charcoal for longer cooking.
Clean cooking may ultimately have a greater direct effect on daily life than any single power plant. It connects energy policy to health, forest protection, household spending and the time required to collect fuel.
Tanzania Is Becoming an East African Energy Corridor
Geography gives Tanzania a wider regional role. The country has an Indian Ocean coastline, major ports and borders with eight other countries. It can connect inland markets with international fuel supplies while also trading electricity with neighbouring power systems.
The Tanzania–Zambia corridor has long supported regional transport and energy trade. New interconnectors can connect Tanzania more closely with the Eastern Africa Power Pool and the Southern African Power Pool. This would allow the country to import electricity during shortages and export power when domestic supply is high.
The Julius Nyerere plant creates the possibility of larger electricity exports, especially if generation remains above domestic demand. EACOP gives the country a crude-oil export route, while Dar es Salaam and Tanga already handle petroleum for neighbouring states. Future gas pipelines or LNG infrastructure could add another regional layer.
Tanzania’s central position can therefore turn energy infrastructure into a source of trade, port activity and political influence. However, regional exports must develop alongside domestic connections. Large pipelines and transmission lines have less national value if local businesses, farms and households cannot obtain reliable energy.
The Future Depends on Converting Capacity Into Economic Activity
Tanzania no longer faces exactly the same power problem it faced a decade ago. The completion of the Julius Nyerere project has greatly increased generating capacity, while domestic gas continues to provide flexible thermal power. The main questions now concern transmission, connections, productive electricity use and the balance between large public projects and private investment.
Hydropower and gas will remain the centre of the electricity system in the near term. Solar, wind and geothermal energy can reduce dependence on two main sources and improve regional supply. Coal will remain useful to selected industries, while imported petroleum will continue to dominate transport. Nuclear power is a distant possibility rather than an active source.
The deepest energy transition will take place beyond the power stations. Tanzania must connect more homes, supply dependable electricity to mines and factories, modernise rural energy services and reduce the household dependence on charcoal and firewood. Success will be measured not only in megawatts, but in how effectively energy supports jobs, public services, industry and daily life across the country.
