Energy transition in Tanzania

Tanzania Electric Supply Company Limited -TANESCO- is the national operator for the production, transmission, distribution and marketing of electricity in mainland Tanzania. To supply a country of more than 60 million inhabitants, it only has a total installed production capacity of 1,733 MW. To support the country’s economic growth and rapid industrialization, TANESCO plans to increase electricity infrastructure and, in particular, increase production capacity to 5,000 MW by 2025. The emphasis is on renewable energies both for reasons of decarbonization and cost control.

TANESCO therefore plans the development of photovoltaic solar power plants. The 130 MW Zuzu power plant, near Dodoma, is the second large-scale project of this type, after the 150 MW Shinyanga power plant, the first tranche of 50 MW of which is under construction. Phoenix works alongside Artelia in the preparation of these projects. At the feasibility study stage, Phoenix carried out the economic and financial analysis of the project, evaluated the pricing methods and defined the optimal financial package. This mission mobilizes the firm’s expertise in financial modeling of power plants, developed over several years during similar missions in Ethiopia, Chad, Ivory Coast, Senegal and, soon, Djibouti.

In Tanzania as elsewhere, this expert mission ended with a 3-day training session for around ten TANESCO executives in the concepts and methods of economic and financial analysis and modeling, focusing on relying on the concrete tools developed for the study of the Zuzu power plant. We consider these training sessions to be key components of our missions and are proud to contribute to the transmission of knowledge and capacity building of decision-makers closest to the issues of the energy transition in Africa.