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Africa

Tanzania

With a power score of 2.11, Tanzania ranks number 32 among Emerging Markets and number 8 in the Africa region

Power score

2.11/5

135135135

Score over time

2021 - 2024

54
2021
8
2022
37
2023
32
2024

Overview

Tanzania has a power score of 2.11, which puts it at rank 32 in the Emerging Markets power ranking. In comparison to 2023, Tanzania has improved in the power rankings by 5 places, from rank 37, to rank 32.

At 2.11, the power score of Tanzania is better than than the regional average of 1.8 in the Africa region and puts it at rank 8 in the region.

Regional comparison chart

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Tanzania

Power

Power policy

Tanzania implements policies in 6/9 power policy categories tracked by Climatescope, including Renewable energy target, Renewable energy auction, Feed-in tariff, Net metering, Import tax incentives, and VAT incentives.

Power policies

Renewable energy target
Renewable energy auction
Feed-in tariff
Net metering
Import tax incentives
VAT incentives
Priority grid access
Renewables mandate
Renewable Energy Certificates

Power prices and costs

The average electricity price in Tanzania has dropped from 85.20 USD/MWh in 2022 to 82.10 USD/MWh in 2023. Since 2017, the average electricity price in Tanzania has fluctuated between 82.10 USD/MWh (2023) and 86.19 USD/MWh (2017).

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Power market

The top amount of capacity installed in Tanzania in 2023 was in Natural Gas at 52.88%, up from 51.85% in 2022. The technology with the biggest increase in capacity installed in 2023 was Utility-scale PV at 14.51%, up from 10.66% in 2022.

Installed capacity (in MW)

2000200520102015202005001K1.5K2K MW

Electricity generation (in GWh)

2000200520102015202002K4K6K8K10K GWh

The top amount of electricity generated in Tanzania in 2023 was in Natural Gas at 65.81%, down from 68.16% in 2022. The technology with the biggest increase in electricity generated in 2023 was Large Hydro at 31.32%, up from 29.09% in 2022.

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Investment in clean energy in Tanzania was around $6.51 million in 2023, an increase of Infinity% from 2022 ($ million). Between 2018 and 2023, the highest investment in clean energy was in 2021 at $157.42 million, while the lowest was in 2020 with $4.30 million.

Utility privatisation

Which segments of the power sector are open to private participation?

generation: Yes
transmission: No
retail: Yes

Doing business and barriers

Type

Question

Availability

Currency of PPAs

Are other PPAs (eg. corporate PPAs) signed in or indexed to U.S. Dollars or Euro?

Yes

Type

Question

Availability

Bilateral power contracts

Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?

Yes

Type

Question

Availability

Fossil fuel price distortions - Subsidies

Does the government keep the wholesale price of electricity from fossil fuels artificially low through subsidies?

Yes

Type

Question

Availability

Fossil fuel price distortions - Taxes and carbon prices

Does the government significantly�increase the wholesale price of electricity from fossil fuel through targeted taxes and/or carbon prices?

Yes

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