Tanzania's Geothermal Development Company (TGDC) has been allocated Sh25 billion in the 2026/27 financial year to accelerate geothermal exploration, with the funding earmarked for drilling new wells and verifying geothermal resources as the country pursues its target of generating 130 megawatts of geothermal electricity by 2030.
The investment will finance continued drilling at the Ngozi geothermal project in Mbeya Region and the launch of drilling operations at the Kiejo-Mbaka project in Songwe Region.
Preliminary scientific studies are also underway at the Luhoi project in Pwani Region and the Natron project to pave the way for future development.
50th Dar es Salaam International Trade Fair (DITF), TGDC Acting Managing Director Shakiru Kajugus said the company plans to drill three wells at the Ngozi project during the current financial year, with each reaching a depth of about 1.5 kilometres.
"We have been allocated Sh25 billion this financial year to support drilling activities. Geothermal development is a multi-year undertaking, and funding is provided according to the implementation stage of each project," he said.
Kajugus said TGDC is currently undertaking geothermal resource confirmation, a key milestone before commercial electricity generation can begin.
At Ngozi, drilling activities are progressing, while preparations have been completed for the commencement of drilling at Kiejo-Mbaka.
At the same time, Luhoi and Natron are undergoing geological, geochemical and geophysical investigations to establish the most viable drilling sites.
"We are still in the exploration phase. Once these studies are completed, environmental assessments will be carried out before identifying the final drilling locations," he said.
The projects are central to Tanzania's strategy of expanding renewable energy sources and reducing reliance on conventional power generation.
Under the country's long-term energy plans, geothermal power is expected to contribute 130 megawatts to the national grid by 2030.
Kajugus said implementation remains on schedule despite electricity generation yet to commence.
"The projects currently under implementation will enable us to meet the 2030 target. Ngozi is expected to produce 70 megawatts, while Kiejo-Mbaka will contribute another 60 megawatts, bringing total generation capacity to 130 megawatts," he said.
He said TGDC expects to complete resource confirmation at Ngozi within the current financial year, while the same stage at Kiejo-Mbaka is projected to be completed during the first half of the following financial year.
Kajugus acknowledged that Tanzania still faces a shortage of local geothermal specialists, noting that geothermal drilling remains a relatively new field in the country and that much of the expertise currently comes from abroad.
To address the skills gap, TGDC has partnered with higher learning institutions to build local capacity and produce more Tanzanian professionals in geothermal exploration and development.
"We are confident that within the next five years Tanzania will have a strong pool of local geothermal experts, making the industry increasingly self-reliant," he said.
Beyond electricity generation, Kajugus said geothermal resources offer significant opportunities for direct industrial and commercial use, including agricultural processing, manufacturing, greenhouse farming, aquaculture, poultry production and dairy processing.
He said expanding such applications would create new investment opportunities, support innovation and increase the economic value of Tanzania's geothermal resources while contributing to sustainable economic growth.
