TGDC unveils $570m geothermal plan to boost national grid by 2030


By Alfred Zacharia

Tanzania plans to invest at least $570 million in two major geothermal power projects by 2030, aiming to diversify its energy mix and strengthen electricity supply, the Tanzania Geothermal Development Company Limited (TGDC) said on Friday.

The state-owned company, a subsidiary of national power utility TANESCO, will oversee the development of the Ngozi Crater ($300 million) and Kiejo-Mbaka ($270 million) projects in the southern highlands, which are expected to generate a combined 130 megawatts (MW) of renewable energy.

“The Ngozi project will contribute 70MW and Kiejo-Mbaka 60MW to the national grid,” said Eng. Shakiru Idrissa Kajugus, TGDC’s Director of Business Development, during the 49th Dar es Salaam International Trade Fair (DITF).

“This is part of our phased approach to unlocking more than 5,000MW of geothermal potential in Tanzania,” he added.

The two projects are part of five priority geothermal sites identified by TGDC. Others include Songwe, Lohoi in Pwani Region, and Natron in Arusha Region.

Drilling operations at Ngozi Crater, located about 20 kilometers south of Mbeya city, are scheduled to begin this month.

“We are starting with three geothermal wells, drilling to a depth of 1,500 meters to reach temperatures of at least 250 degrees Celsius. Everything is ready for the six-month drilling process,” said Kajugus.

The Ngozi project, first initiated in 2015, has reached its final phase of implementation.

Tanzania has identified geothermal resources in at least 16 regions, encompassing around 50 potential sites.


Kajugus emphasized that geothermal power could play a key role in stabilizing electricity supply, reducing fossil fuel dependency, and contributing to broader socio-economic development.

“Geothermal energy is not only reliable and cost-effective but also supports other activities such as crop drying, greenhouse agriculture, poultry incubation, tourism, and therapeutic services,” he noted.

The projects will also contribute to the African Union’s goal of connecting 300 million people to electricity by 2030.

“Tanzania’s 130MW geothermal target is a clear commitment to that continental agenda,” he added.

TGDC is receiving technical and financial support from the Japan International Cooperation Agency (JICA), which is helping build capacity and mobilize resources for geothermal development. 

“JICA has been a key partner. Two of our technicians are currently pursuing Master's degrees in geothermal energy in Japan,” Kajugus said.

Tanzania’s geothermal exploration dates back to the 1970s, when the Geological Survey of Tanzania conducted initial studies along the East African Rift System. Further surveys funded by the Swedish International Development Agency (SIDA) between 1976 and 1979 identified high- and low-temperature hot springs for potential energy use.

With growing energy demand driven by industrialization and population growth, geothermal energy is emerging as a strategic pillar in Tanzania’s long-term energy plan.

 

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