Tanzania Energy Sector Infrastructure and Generation Budget (FY 2024/2025)

The Ministry of Energy's 2024/2025 Budget serves to implement Tanzania’s Third Five-Year Development Plan (FYDP III) and achieve National Vision 2025 goals. As of March 2024, Tanzania's total grid-connected generation capacity reached 2,138 MW, a 14.2% increase from the previous year. The budget allocates funding to complete and initiate large-scale generation projects, including the 2,115 MW Julius Nyerere Hydro Power Project (JNHPP) and the 80 MW Rusumo Hydro Power Project.

Key investment areas and projects include:

• Hydropower: Funding for the 49.5 MW Malagarasi project (including 5.1 billion TZS in external funds) and preliminary work for Rumakali (222 MW) and Kikonge (321 MW).
• Gas-to-Power : Allocation for the 600 MW Kinyerezi III plant.
• Renewables: Development of the 100 MW Kititimo Wind Project (estimated cost 153M) and the 100 MW Manyoni Solar Project (120M).
• Grid Stability: The "Strong Grid" (Grid Imara) project involves building substations in every district nationwide at an estimated total cost of 4.2 trillion TZS.
• Rural Energy: Through the Rural Energy Agency (REA), the government is funding the installation of 7,000 off-grid solar systems (9.4 billion TZS) and providing a 10 billion TZS subsidy for small renewable developers (mini-grids).
• Clean Cooking: Allocation of 24.5 billion TZS in domestic funds to promote clean cooking energy and reduce biomass dependency.
• Private Sector: Implementation of contracts with 20 small power producers (SPPs) to add 86.31 MW of decentralized renewable capacity

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