The government has taken another step towards strengthening Tanzania’s renewable energy capacity after the signing of a TZS 204.7 billion contract for the second phase of the Kishapu Solar Power Project, which is expected to add 100 megawatts (MW) of electricity to the national grid.
The agreement, signed on Monday, July 27, 2026, between the Tanzania Electric Supply Company (TANESCO) and contractors Sagemcom Energy & Telecom SAS and STEG International Services, marks the start of the project’s second phase in Ngunga area, Kishapu District, Shinyanga Region.
Minister for Energy Deogratius Ndejembi, who witnessed the signing ceremony, said the project is part of government efforts to diversify electricity generation sources and reduce dependence on a limited number of energy sources.
He said increasing investment in renewable energy remains a key priority as Tanzania seeks to secure a reliable, affordable and sustainable power supply to support economic growth.
“The Kishapu Solar Project is part of our strategy to strengthen the national energy mix by increasing electricity generation from renewable sources,” Mr Ndejembi said.
The minister said the project is being implemented in two phases with a combined generation capacity of 150MW.
The first phase, which will generate 50MW, is being implemented at a cost of TZS 118.3 billion and is currently in its final stages.
The second phase, which will add 100MW, will cost TZS 204.7 billion, bringing the total investment for the entire project to TZS 323 billion.
The completion of the project is expected to increase the contribution of solar energy to Tanzania’s electricity supply, improve stability of the national grid and help meet rising demand from households, businesses and industries.
Energy analysts have consistently highlighted the importance of expanding renewable energy projects as Tanzania seeks to build a resilient electricity system capable of supporting long-term development goals.
The Kishapu project is among several government initiatives aimed at increasing generation capacity and creating a balanced energy mix that combines natural gas, hydropower, solar and other renewable sources.
The signing ceremony was attended by Deputy Minister for Energy Salome Makamba, Shinyanga Regional Commissioner Mboni Mhita, Permanent Secretary in the Ministry of Energy responsible for Electricity and Renewable Energy Eng. Felchesmi Mramba, Chairperson of the Parliamentary Standing Committee on Energy and Minerals Subira Mgalu, and other government officials and energy sector stakeholders.
