Review of Power System Master Plan 2012 in the United Republic of Tanzania
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Ministry of Energy and Minerals Tanzania Electric Supply Company Ltd. (TANESCO) The United Republic of Tanzania FINAL REPORT ON THE PROJECT FOR FORMULATION OF POWER SYSTEM MASTER PLAN IN DAR ES SALAAM AND COAST REGIONS AND REVIEW OF POWER SYSTEM MASTER PLAN 2012 IN THE UNITED REPUBLIC OF TANZANIA REVIEW OF POWER SYSTEM MASTER PLAN 2012 MARCH 2017 JAPAN INTERNATIONAL COOPERATION AGENCY (JICA) IL YACHIYO ENGINEERING CO., LTD. JR 17-022 Contents Contents List of Figures & Tables Abbreviations Chapter 1 Introduction....................................................................................................................... 1-1 1.1 Background .................................................................................................................................. 1-1 1.2 Contents of the survey and target area ......................................................................................... 1-3 1.3 Schedule and work flow ............................................................................................................... 1-3 1.4 Project implementation setup ....................................................................................................... 1-5 Chapter 2 Tanzania’s Economy ......................................................................................................... 2-1 2.1 Population and Labor .................................................................................................................... 2-1 2.1.1 Population ............................................................................................................................... 2-1 2.1.2 Labor Statistics ........................................................................................................................ 2-1 2.2 Macro-economic Performance ...................................................................................................... 2-4 2.2.1 Economic growth trends ......................................................................................................... 2-4 2.2.2 GDP per capita ........................................................................................................................ 2-5 2.3 Infrastructure and Production Activities ....................................................................................... 2-7 2.3.1 Infrastructure ........................................................................................................................... 2-7 2.3.2 Production Activities ............................................................................................................... 2-11 2.4 Middle and Long term economic plan .......................................................................................... 2-13 2.4.1 Tanzania Development Vision (TDV) 2025 ........................................................................... 2-13 2.4.2 Five Year Development Plan .................................................................................................. 2-14 2.5 Recent Economic Prospects .......................................................................................................... 2-16 2.5.1 Recent economic climate from 2012 to 2015 .......................................................................... 2-16 2.5.2 Outlook short to medium term prospects ................................................................................ 2-16 Chapter 3 Policy and Organization of the Energy/Electricity Sector ................................................. 3-1 3.1 Energy and Electricity Policy ........................................................................................................ 3-1 3.1.1 Electricity Supply System ....................................................................................................... 3-1 3.1.2 Energy and Electricity Policy .................................................................................................. 3-4 3.2 Organization and Functions of Electricity Sector ......................................................................... 3 - 7 3.2.1 Ministry of Energy and Minerals ............................................................................................ 3-7 3.2.2 TANESCO .............................................................................................................................. 3-8 3.3 Principal Activities of TANESCO ................................................................................................ 3-10 3.3.1 Operating Performance ........................................................................................................... 3-10 3.3.2 Projects implemented during 18 month to 30th June 2015 ..................................................... 3-10 3.3.3 Transmission/Distribution Loss .............................................................................................. 3-12 3.3.4 Number of Customer and Customer/Staff Ratio ..................................................................... 3-13 3.4 Electricity Sector Industry Reform ................................................................................................ 3-13 3.4.1 Electricity Supply Reform Strategy ........................................................................................ 3-13 3.4.2 Optional Models ...................................................................................................................... 3-14 3.4.3 Roadmap ................................................................................................................................. 3-16 3.4.4 Immediate Action and Required Budget ................................................................................. 3-19 3.4.5 Challenges To Be Overcome .................................................................................................. 3-19 Chapter 4 Energy Demand ................................................................................................................. 4-1 4.1 Energy balance .............................................................................................................................. 4-1 4.1.1 Energy balance features in Tanzania ....................................................................................... 4-1 4.1.2 Energy consumption structure ................................................................................................. 4-1 4.2 Energy demand trends by energy .................................................................................................. 4-4 4.2.1 Coal and coal products demand .............................................................................................. 4-4 4.2.2 Natural gas .............................................................................................................................. 4-4 4.2.3 Gasoline and Diesel ................................................................................................................. 4-5 4.2.4 Kerosene .................................................................................................................................. 4-5 4.2.5 Fuel oil .................................................................................................................................... 4-6 4.2.6 LPG ......................................................................................................................................... 4-6 4.2.7 Woods and Charcoal ............................................................................................................... 4-7 4.3 Energy demand by sector .............................................................................................................. 4-9 4.4 International comparison for energy demand ................................................................................ 4-10 Chapter 5 Energy Resources for Power Generation ........................................................................... 5-1 5.1 Overview of Energy Supply .......................................................................................................... 5-1 5.2 Natural Gas .................................................................................................................................... 5-4 5.2.1 Shallow Water and Onshore Gas fields ................................................................................... 5 - 5 5.2.2 Deepwater Gas fields .............................................................................................................. 5-9 5.2.3 Outlook of Natural Gas Supply ............................................................................................... 5-10 5.3 Coal ............................................................................................................................................... 5-15 5.4 Renewable energy ......................................................................................................................... 5-20 5.4.1 National Development ............................................................................................................ 5-20 5.4.2 Renewable energy potential and development status .............................................................. 5-21 5.4.2.1 Hydropower .................................................................................................................... 5-22 5.4.2.2 Small hydropower ........................................................................................................... 5-22 5.4.2.3 Geothermal