FAQ about the Electricity Sector in Tanzania
clean, reliable, cost effective electricity using Tanzanian natural
gas. The gas provides a clean, reliable alternative source of
energy in a country that has been heavily dependent on the region’s
water supplies and importation of expensive heavy fuel oil for
happens to the gas collected at the Songo Songo Island?
The gas flows
into a 225 kilometers pipeline to Songas’s Ubungo power plant
in Dar es Salaam where it drives six turbines that generate electricity.
This electricity is fed into the national electricity grid where
it is distributed by TANESCO.
much gas is there and how much electricity does Songas generates?
The gas fields
around Songo Songo Island are medium-sized by international standards,
with reserves that will last for at least 20 years. At present,
Songas is running at full capacity and generates 180 megawatts
(MW) of power. This is approximately 30%of Tanzania’s electricity
other types of electricity generation are used in Tanzania?
Electricity is also generated in Tanzania through hydroelectric
power using water collected in Tanzania’s six main dams and liquid
heavy fuel oil which is expensive and contains many pollutants.
Tanzania producing enough electricity to meet its need?
Currently the demand for electricity is about
780 MW and is expected to be increased to approximately 900 MW
by the end of 2009.
makes up the cost of electricity?
The cost of
electricity consists of a number of elements including the cost
of repaying loans for construction of power stations and the distribution
network, the cost of buying fuel and the cost of running and maintaining
the system (including both power stations and the network).
With a generation cost of about TShs 65 (5.5 US cents) per unit,
Songas is the cheapest thermal power generation available in East
Africa. This price covers all aspects of the project from Processing,
Gas Transportation and Generation and compares favorably to the
real costs of TANESCO’a own hydroelectric generation stations.
The tariffs charged by Songas include repayment of loans and capital
invested during construction of the processing plant, pipeline
and power station as well as its operating costs. Songas also
has to buy its fuel from the state-owned petroleum company, TPDC
and Pan African Energy)
does Tanzania’s electricity price compare to other countries?
price for electricity in Tanzania is much lower than in neighboring
Kenya and Uganda. This is partly due to the availability of cheap
electricity from Songas. Without Songas and other recently commissioned
gas-fired stations, the government would be forced to spend significant
amounts of money on expensive oil-fired generation.
By utilizing the country’s own natural gas resources, the Songas
facility has substantially reduced operating costs for TANESCO
and other industries in Tanzania. Over USD1.8 billion has been
saved since commercial operations commenced in 2004.