The Tanzania Electric Supply Company Limited (TANESCO) is a Tanzanian parastatal organisation established in 1964. It is wholly owned by the government of Tanzania. The Ministry of Energy and Minerals regulates the operations of TANESCO.[1]
Its business include: electricity generation, electricity transmission, electricity distribution and sale of electricity to the Tanzanian mainland and bulk power supply to the island of Zanzibar.
The company has a workforce of 7,300 persons. Its main offices are located in Ubungo west of Dar es Salaam central business district and it operates regional offices throughout Tanzania.[2]
Commercial operations for Tanesco began in 1933 with the first diesel generator in the Tanga Region. The first dam was completed in 1936 on the Pangani River. By 1959 the total capacity was 17.5MW and the company had 400 km of supply lines. On 12 February 1948 Tanesco secured the contract to sell surplus power from the hydro dam to Mombasa, Kenya.[4]
The Tanzania Electric Supply company ltd. is wholly owned by the Government of Tanzania. It is a public corporation governed by the Public Corporations Act, revised edition 2002.[11]
There has been much debate to either privatise the company or list the company on the Dar-es-salaam Stock Exchange.[12] The government however encourages the public sector to enter the market and compete with Tanesco, however, the government is adamant to maintain its public status to help keep the cost of electricity always low for the majority of the population.[13]
The following is the overview of Tanesco''s operations As of March 2015[update]:[5]
Tanesco has to import a small amount of its energy from Uganda and Zambia to supply the needs of the bordering regions that are not connected to the national grid.[18] Currently Tanzania only exports electricity to Kenya near the Horo Horo region,[19] and the Isinya–Singida High Voltage Power Line is under construction. With the recent expansion of the Gas Sector in Tanzania the company has major plans to increase exports to neighbouring countries.
Small power producers are allowed to sell their power directly to the consumer and sell the excess to Tanesco. However, the tariffs of sale have been decided by Tanesco to maintain public interest. Below is a table showing the possible tariff cases an SPP can engage in; an SPP can engage in one case or a combination of many.[21]
The North East Grid project is part of the Government of Tanzania''s 2025 Power System Master Plan and is being structured in three phases. Gridworks will work on the phase of the project that includes a 400kV transmission line from Dodoma (in the central part of the country) to Chalinze (to the east), a 400kV transmission line from Chalinze to Segera (in the north east) and a 220kV from Segera to Tanga (in the north). Gridworks will also develop new substations at Segera and Tanga and upgrade the Dodoma substation.
Gridworks'' investment will deliver high development impact and will support the government''s aim to increase electrification to achieve universal access for the country''s population. It will increase the reliability of the grid, connect demand centres, and ensure grid-quality power can reach regions that previously didn''t have access. The grid extension will also support regional inter-connectivity with neighbouring Kenya.
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