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Tanzania's renewable energy market is experiencing steady growth, with renewables accounting for over 38% of the country's total electricity generation in 2023. This figure is expected to reach 50% by 2030 and 70% by 2050, driven by government initiatives, declining costs of renewable energy technologies, and growing consumer demand for clean energy. Tanzania's abundant renewable energy resources, particularly in hydropower, wind, and solar energy, make it well-positioned to achieve its ambitious renewable energy targets.
The Tanzanian government is committed to promoting renewable energy development and has set a target of achieving 50% renewable energy consumption by 2030 and 70% by 2050. The government actively supports the sector through various procurement measures, including:
The Renewable Energy Policy of Tanzania 2022, which establishes a framework for promoting renewable energy
The Rural Energy Act 2005, which promotes renewable energy development in rural areas
The Electricity Act 2008, which sets the regulatory framework for renewable energy procurement
The Tanzanian government procures a diverse range of renewable energy products and services, including:
Hydropower: Hydropower is the largest source of renewable energy in Tanzania, accounting for over 59% of the country's total renewable electricity generation.
Solar energy: Solar PV is gaining traction in Tanzania, with over 82 megawatts (MW) of installed capacity.
Wind energy: Wind power is also starting to play a role in Tanzania's energy mix, with several small-scale wind farms in operation.
The top authorities overseeing renewable energy procurement in Tanzania are:
The Ministry of Energy
The Tanzania Renewable Energy Association (TAREA)
The Rural Energy Fund (REF)
Major companies that have secured significant renewable energy procurement contracts in Tanzania include:
Aga Khan Fund for Economic Development (AKFED): AKFED is an international development agency with a focus on renewable energy projects in Tanzania.
KfW Development Bank: KfW is a German development bank that provides financing for renewable energy projects in Tanzania.
SNV: SNV is a Netherlands-based development organization that supports renewable energy development in Tanzania.
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