Out-dated fossil-based energy sys- tem: slowing down development

From the power generation side, nearly 60% of the total installed capacity of electricity production in the country is from fossil fuels ( mainly natural gas : 57 % )natural gas (a non-renewable energy), with only 37% originating from the hydro sources. The electrical supply varies in times of drought leading to rolling blackouts. Furthermore, a quar- ter of the produced power is lost due to the poor state of the grid infrastructure.

The unreliability of power supply has had a negative impact on the development of Tanzani- an industry sector. When it comes to the consumption side, mostly at household level, more than 85 percent of the Tanzanian households rely on biomass fuels for cook- ing, associated with indoor air pollution and related health issues as well as significant amounts of deforestation.

Untapped potential: RE to leverage development

Although Tanzania has excellent wind, solar, geothermal and biomass resources for power production, only 4.85% of non-hydropower renewables potentials are being con- sidered in the Electricity Industry Reform Roadmap to 2025. The country’s abundant renewable energy potential offers the possibility to overcome some of the challenges faced by the energy and power sectors.

This would lead Tanzania towards economic growth that is sustainable and cost effective. Tapping more of these sustainable resources would facilitate Tanzania’s economic transformation, and hence put her in the right direction towards attaining a middle-income status in the next decade