The Deputy Premier says this project boosts GGM’s
operational efficiency and enhances Tanesco’s revenue, benefiting the national
economy. Photo: Courtesy
By Adonis Byemelwa
Recently
Geita Gold Mine (GGM) has embarked on a transformative journey by shifting from
costly fuel-based power to grid electricity. Launching a new 34 MW substation,
inaugurated by Deputy Prime Minister and Minister of Energy, Dr. Doto Biteko,
signifies a monumental change for the mine, which previously faced exorbitant
energy expenses.
GGM
had been grappling with substantial operational costs, totaling Sh130 billion
monthly. A significant portion of this, Sh 13.4 billion, was spent on fuel for
power generation. The new substation, built for USD 24 million by GGML, is
expected to slash the mine’s energy expenditures by a remarkable 92 percent. This
substantial reduction in costs is anticipated to boost reinvestment in the
mine’s operations and drive economic benefits for the local community.
“This transition to grid electricity is a major milestone for GGM. The savings on energy costs will allow us to reinvest in our operations and improve local economic conditions,” said Simon Shayo, Vice President of AngloGold Ashanti-Tanzania for Sustainable Projects. With the substation now operational, the mine’s reduced energy costs are expected to lead to enhanced employee benefits and increased community investments.
A local steel manufacturer has opened a new office in
Dar es Salaam, but its activities are causing power outages in nearby areas.
Photo. File
The
inauguration of the substation highlights the productive partnership between
Tanzania’s government and the private sector. Abubakari Issa, representing the
Managing Director of Tanzania Electric Supply Company Limited (Tanesco),
emphasized the government's investment of Sh 8.04 billion in constructing a 33
kV power line to support the substation. This investment is projected to
generate an additional Sh 2 to 3 billion in monthly revenue for Tanesco,
strengthening the national power supplier's financial position.
“This
project not only boosts GGM’s operational efficiency but also enhances
Tanesco’s revenue, benefiting the national economy,” Dr. Biteko stated during
the inauguration. He lauded the initiative as a prime example of President Dr.
Samia Suluhu Hassan’s commitment to fostering a business-friendly environment
in Tanzania. “The collaboration between government and business illustrates how
joint efforts can lead to significant economic advancements,” he added.
However,
the transition to grid electricity brings with it a set of complex challenges.
The integration of Geita’s mines into the national grid has put added pressure
on Tanzania’s already strained power infrastructure. This situation underscores
the broader difficulties of balancing industrial growth with reliable energy
distribution.
In
neighboring Shinyanga, which shares the same grid, residents frequently contend
with dim lighting and power outages, particularly around the Williamson Diamond
mine. The high energy demand from nearby factories exacerbates these issues,
leading to frequent power disruptions. Similarly, Mbagala faces its own set of
challenges, where the steel industry’s power consumption impacts businesses in
areas such as Zakheim, Njia Panda Nzasa, Kingungi, and Chamazi. The strain from
large-scale industries, while economically beneficial, places significant
pressure on the local grid.
Despite
Tanzania having over 2,300 megawatts of electricity available, especially
following the inauguration of the Mwalimu Nyerere power plant, the grid
struggles with distribution inefficiencies. The formula for electrical power, P
= VI (where P represents power, V is voltage, and I is current), often reveals
a mismatch between supply and demand. This mismatch can cause voltage drops and
outages, highlighting systemic issues within the energy sector that need urgent
reform.
To
mitigate these challenges, the government must prioritize several key
strategies. Upgrading grid infrastructure is crucial to managing increased
demand and reducing the frequency of power outages. Implementing advanced load
management systems and enhancing energy storage solutions can help stabilize
the grid and ensure a reliable power supply.
Additionally, decentralizing power generation
and incorporating renewable energy sources, such as solar and wind, could
alleviate pressure on the national grid and create a more resilient energy
system.
Investing
in local energy infrastructure is also essential to ensure that industrial
growth does not compromise the quality of life for residents. Improved grid
management practices, such as the use of smart grid technologies, can help
balance the needs of industrial and residential users, ensuring equitable
access to reliable power.
The
successful transition of GGM to grid electricity is a pivotal step in advancing
Tanzania’s energy sector. By addressing systemic challenges and investing in
infrastructure, Tanzania can pave the way for sustainable industrial
development that benefits both businesses and local communities.
This approach will not only enhance the
stability of the power supply but also support the country’s long-term economic
growth objectives. The transition underscores the potential for strategic
infrastructure investments to drive growth, and with the right measures,
Tanzania can turn these challenges into opportunities for advancement.
