Tanzania-National Energy Compact
The Energy sector in Tanzania began decades ago, laying a foundation for what has now a become a robust and transformative sector. Starting with Hydro power Plant producing just 21 MW in 1967 and expanding to significant projects including Julius Nyerere Hydropower Project producing 2,115 MW to reach total installed capacity of 3,404.20MW as at January, 2025. Tanzania continues to make significant progress in connecting citizens to electricity. Overall electricity access in mainland Tanzania has increased from 14 percent in 2011 to 78.4 percent in 20201 , as the country has expanded the power grid to reach 100 percent coverage of all 12,318 villages. Despite this achievement, connectivity of the population today in mainland Tanzania is less than 50 percent and about 40 percent of the population in Zanzibar.
Over 89 percent of households in mainland Tanzania still rely on traditional fuels and technologies for cooking, while in Zanzibar, the figure exceeds 84 percent. Aging infrastructure further compounds the problem of reliability and quality of supply. This National Energy Compact sets forth actionable commitments to address these challenges and achieve transformative energy outcomes.
The government of Tanzania aims to increase electricity connectivity to 75 percent by 2030 and clean cooking access to 80 percent by 2034. It also aims to increase the share of renewable energy in the generation-mix to 75 percent from the current 61.8 percent, which will require adding over 1,800 MW of generation capacity from solar, wind, geothermal, and hydro. Significant mobilization of public- and private-sector financing is targeted in order to create a favorable investment climate, strengthen local capacities through training, and establish robust datacollection systems for informed energy-planning and decision-making.
Energy Access and Use Situation Survey II by NBS – 2019/20 This National Energy Compact was developed through extensive engagements and consultations with various stakeholders, including development partners, private sector, and civil society, to foster partnerships crucial for achieving the ambitious goals of the Compact. Recognizing that success requires capacity-building and considerable collective efforts, the government of the United Republic of Tanzania calls on development partners, philanthropies, the private sector, and civil society to join this transformative journey in accelerating the pace of access to energy and to help in mobilizing an additional US$12.9 billion in financing, including US$4.039 billion from the private sector.