Tanzania diversifying away from hydro

9 July 2012 – Tanzania’s minister of energy and minerals, Sospeter Muhongo, says that regular droughts have necessitated a shift in government policy. "We are committed to changing our dependency on a single source of electricity, which is hydro, that generates 561 MW or 41% of the total supplied to the national grid,” he said at the inauguration of a 105 MW gas power plant at Ubungo in Dar es Salaam.
 
Gas is to become a large source of energy for Tanzania with over 26.99 trillion cubic feet (TCF) of natural gas reserves having been discovered, and more expected to be found as exploration continues.
 
The new 105 MW Ubungo power plant brings to 554 MW the total being generated by natural gas which translates to 40% of the 1,375 MW of power supplied on the national grid. The plant, which comprises three gas turbines each with a capacity of 35 MW, was constructed by Norwegian group Jacobsen. The project cost US$124.89 million and was financed by a loan from HSBC Bank with guarantees from the Norwegian government.