A review of private investment in Tanzania’s power generation sector
DOI:
https://doi.org/10.17159/2413-3051/2018/v29i2a4389Abstract
This study investigates recent developments in Tanzania’s electric power generation to understand how to facilitate investment in the sector. Interviews were conducted with key public and private stakeholders; utility data was analysed and critical secondary source documents were reviewed. All interview data was triangulated to ensure integrity of findings. It was concluded that investment in the sector is suboptimal due to a lack of coherent planning; of processes related to contract negotiation; and of a commitment to contract with independent power projects. Research and analysis is limited to generation, but there are also implications for the distribution sector. The value of the findings extends beyond Tanzania across Africa and to other developing regions, where countries struggle to attract investment into electric power generation.
Downloads
References
Asia Pacific Economic Cooperation Energy Working Group. 1997. Manual of best practice principles for independent power producers, APEC Secretariat, Canberra.
Castellano, A., Kendall, A., Nikomarov, M. and Swemmer. T. 2015. Brighter Africa. McKinsey & Company Monthly Journal, February 2015.
Clark, A., Davis, M., Eberhard, A., Gratwick, A. and Wamukonya, N. 2005. Power sector reform in Africa: Assessing the impact on poor People. University of Cape Town Graduate School of Business/ESMAP.
Eberhard, A., Gratwick, K., Morella, E. and Antmann, P. 2016. Independent power projects in sub-Saharan Africa: Lessons from five key countries. World Bank, Washington, D.C.
https://doi.org/10.1596/978-1-4648-0800-5
Eberhard, A., Gratwick, K., Morella, E. and Antmann, P. 2017. Independent power projects in sub-Saharan Africa: Investment trends and policy lessons. Energy Policy 108: 390–424.
https://doi.org/10.1016/j.enpol.2017.05.023
Eberhard, A. and Gratwick, K.N. 2011. IPPs in sub-Saharan Africa: Determinants of success. Energy Policy 39: 5541–5549.
https://doi.org/10.1016/j.enpol.2011.05.004
Eberhard, A., Rosnes, 0., Shkaratan, M. and Vennemo, H. 2011. Africa’s power infrastructure: Investment, integration, efficiency. World Bank, Washington, D.C.
Ghanadan, R. and Eberhard, A. 2007. Electricity utility management contracts in Africa: Lessons and experience from the TANESCO-NETGroup Solutions management contract in Tanzania, 2002–2006. MIR Working Paper, Management Programme for Infrastructure Reform & Regulation (MIR), Cape Town.
Gratwick, K. and Eberhard. A. 2008. Demise of the standard model for power sector reform and the emergence of hybrid power markets. Energy Policy 36: 3948–3960.
https://doi.org/10.1016/j.enpol.2008.07.021
Gratwick, K., Ghanadan, R. and Eberhard, A. 2006. Generating power and controversy: Understanding Tanzania’s independent power projects, Journal of Energy in Southern Africa 17(4):39-56.
Kapika, J. and Eberhard, A. 2013. Power sector reform and regulation in Africa: Lessons from Kenya, Tanzania, Uganda, Zambia, Namibia and Ghana. HSRC Press, Cape Town.
Ministry of Energy and Minerals (MEM). 2013. Joint energy sector review (JESR) 2012/13 for Tanzania. MEM, Dar-es-Salaam.
Ministry of Energy and Minerals (MEM) 2014. Electricity supply industry reform strategy and road map 2014–2015. MEM, Dar-es-Salaam.
Ng’wanakilala, F. 2014. Tanzania to pick winners of oil, gas bids before year-end. Reuters, October 17, 2014. Available at: http://www.reuters.com/article/ 2014/10/17/tanzania-gas-idUSL6N0SC2RS20141017. (Accessed 22 April 2015).
National Key Result Area Energy. 2013. Energy lab final report, NKRA, Dar es Salaam.
Society of Petroleum Engineers. 2011. Guidelines for application of the petroleum resources management system. Available at: http://www.spe.org/industry/ reserves.php#redirected_from=/industry/reserves/. (Accessed 22 April 2015).
United Republic of Tanzania Audit Office. 2013. Report of the Controller and Auditor General on the financial statements of TANESCO for the year ended 31 December. United Republic of Tanzania Audit Office, Dar-es-Salaam.
World Bank. 1993. The World Bank’s role in the electric power sector: Policies for effective institutional, regulatory, and financial reform. World Bank, Washington, D.C.
World Bank and USAID, 1994. Submission and evaluation of proposals for private power generation
projects in developing countries. IEN Occasional Paper No. 2, World Bank, Washington, D.C.
World Bank. 2016. New financing to bring 2.5 Million Tanzanian households to the electricity grid. Available at: http://www.worldbank.org/en/ news/press-release/2016/06/21/new-financing-to-bring-25-million-tanzanian-households-to-the-electricity-grid. (Accessed 12 November 2016.)
Downloads
Additional Files
Published
How to Cite
Issue
Section
License
Copyright (c) 2018 Anton Eberhard, Katharine Gratwick, Laban Kariuki
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
.png){kind=spacer}