@Therespondent
Tanzania’s energy landscape is evolving rapidly as the country embraces cleaner and more sustainable energy sources, marking a decisive shift in its energy transition journey.
The recently released Electricity Sub-Sector Regulatory Performance Report for the Financial Year 2023/24 by the Energy and Water Utilities Regulatory Authority (EWURA) confirms a 5.72 percent drop in electricity generation from natural gas, while hydropower’s share rose by 5.50 percent.
However, the reports show that natural gas is still leading in the energy generation, accounts for 67.10 percent followed by 32.42 percent from hydropower, 0.47 percent from liquid fuel, and 0.01 percent from biomass.
This shift is largely attributed to the full commissioning of the Julius Nyerere Hydropower Project (JNHPP), which will soon start contributing 2,115 megawatts to the national grid.
The JNHPP, operating all nine turbines as of April 2025, has redefined Tanzania’s power generation capacity as Deputy Prime Minister and Minister of Energy Dr. Doto Biteko declared the project complete during a site visit, assuring the public of a stable and sustainable electricity supply.
The project’s success also coincided with the expiration of a two-decade power purchase agreement between TANESCO and Songas on October 31, 2024, symbolizing a strategic pivot from gas-based power towards renewable energy dominance.
Still, natural gas remains a vital part of Tanzania’s broader energy matrix.
The Natural Gas Sub-Sector Regulatory Performance Report by EWURA reveals that power generation consumed 85.41 percent of the total gas supply in FY 2023/24, affirming TANESCO’s leading role in natural gas usage.
However, Tanzania Petroleum Development Corporation (TPDC) is actively working to reshape that picture by tapping into underutilized sectors with high potential for growth.
The industrial sector followed power generation with a 14.19 percent share of natural gas consumption.
Dangote Cement, SBC Tanzania, ALAF, and Wazo Hill Cement led the pack of top industrial consumers.
Vehicles powered by Compressed Natural Gas (CNG) made up 0.38 percent of the total usage, signaling early gains in the transport sector’s transition to cleaner fuel alternatives.
However, the commercial, institutional, and household segments together accounted for a mere 0.02 percent, underscoring the vast untapped potential for natural gas expansion in daily life.
TPDC is actively positioning natural gas as a transformative energy solution far beyond electricity. Its ongoing efforts include expanding gas pipelines and infrastructure to industrial parks and manufacturing zones in regions such as Coast, Morogoro, Tanga, and Dodoma.
The corporation is engaging new investors and existing factories to adopt natural gas as an affordable and environmentally friendly alternative to coal, diesel, and heavy fuel oils.
In the transport sector, TPDC is spearheading an ambitious campaign to increase the adoption of CNG vehicles.
With successful CNG refueling stations already operational in Dar es Salaam and plans underway for additional facilities in Arusha, Mwanza, and Dodoma, the corporation aims to make CNG a mainstream transport fuel.
These initiatives target both public and private fleets, including public buses, taxis, and government vehicles. The shift is expected to significantly reduce urban air pollution and dependence on imported petroleum products.
TPDC is also eyeing households and institutions as the next frontier for natural gas consumption. In collaboration with local governments and private partners, the corporation is piloting small-scale gas distribution networks in selected urban neighborhoods.
The goal is to introduce piped natural gas as a cleaner and safer alternative to charcoal, firewood, and LPG for cooking and heating, especially in rapidly growing cities where demand for energy is surging.
These efforts align with national climate goals and aim to reduce pressure on Tanzania’s forests, while improving air quality and household health outcomes.
Hydropower’s growing dominance is supported by several long-term advantages.
Unlike gas-fired plants, hydropower facilities benefit from low operational costs and long lifespans often spanning 40 to 80 years.
Water, the energy source for these plants, is naturally abundant in many parts of the country, providing price stability and insulation from global fuel market shocks.
Hydropower plants also contribute to grid reliability, offering services like frequency regulation and reserve capacity that support energy security.
As international focus shifts toward cleaner energy investments, Tanzania stands to benefit from increased funding, favorable policies, and technical partnerships for renewable energy development. However, the nation’s approach remains balanced.
Natural gas—particularly for industrial and domestic use—remains a strategic asset in bridging the energy access gap, reducing environmental degradation, and supporting economic transformation.
In this dual-track energy future, Tanzania is not just replacing one energy source with another.
Instead, it is building a diversified, resilient, and inclusive energy system. While the grid is increasingly powered by hydropower, the country’s economy, transport networks, and households are being energized by natural gas—thanks to TPDC’s forward-looking initiatives.
With ongoing infrastructure investments and public awareness campaigns, natural gas is set to emerge as a catalyst for industrial growth, urban modernization, and environmental sustainability. The era of single-use gas is ending—replaced by a national vision that treats every molecule of natural gas as an opportunity for progress.
