Tanzania eyes 100MW import from Ethiopia

• Tanzania to import 100MW of electricity from Ethiopia via Kenya.
• Regional power pools enhance power trade and reliability.
• Power trade builds regional integration, diplomacy.

Power trade—the import and export of electricity—is expanding across East Africa, with Tanzania now set to import 100MW of energy from Ethiopia.

The Tanzania Electric Supply Company (TANESCO) will facilitate the import, aiming to reduce power losses and improve electricity distribution in the country’s Northern Zone. The government, in a recent statement, announced that this initiative aligns with Tanzania’s broader strategy to enhance energy efficiency and ensure a stable power supply nationwide.

By integrating into the regional power grid, Tanzania expects to optimize electricity distribution and minimize transmission losses. This move builds on previous power trade agreements with Zambia, Uganda, and Kenya, which have helped bridge energy shortages in border regions such as Rukwa, Kagera, and Tanga.

“This latest initiative aligns with the government’s commitment to improving the energy sector and ensuring reliable power supply for economic growth,” reads the press release.

According to the statement that issued by the government Chief Spokesperson, Gerson Msigwa, “most of Tanzania’s electricity is generated in the southeastern part of the country. As a result, it has to be transmitted over long distances, leading to significant energy losses.”

To cut the losses, the spokesperson announced that the government has decided to source electricity from Ethiopia through the East African Power Pool grid system. He said electricity import from Ethiopia is more affordable compared to transmitting power across the country.

Meanwhile, Tanzania’s own output is close to 2,115 megawatts from the Julius Nyerere Hydropower Project (JNHPP) alone.

Energy permanent secretary Felchesmi Mramba explained that the planned electricity import is not due to the country’s supply shortages but “the need to stabilize the grid and improve supply to northern regions.”

He went on to detail that Tanzania is looking to enhance its energy reliability and diversify it’s power sources to ensure stable supply, particularly in the northern zone, which he said is suffering from persistent outages that are affecting business performance and deterring investment.

Tanzania is already producing surplus electricity with current generation at 3,796MW, while demand is short of 2,200MW, he said. So the import of 100MW from Ethiopia is only intended to stabilize the grid in the northern zone, he noted.

Despite having this substantial electricity surplus, however, “in the northern regions, power supply is unreliable, suffering frequent voltage drops and outages caused by the long distances between the main generation sites in Dar es Salaam for gas-driven turbines, aside from Morogoro and Iringa for key hydropower plants, apart from the JNHPP,” he detailed.

“The distance between the power plants and the northern region creates inefficiencies in transmission, causing power supply disruptions,” he concluded.

According to the official, electricity from Ethiopia is being bought at 7.7 US cents per kilowatt-hour; “this is significantly lower than comparable in-country sources,” the Permanent Secretary detailed.

He said it is simply a matter of been cost effective; “between developing new power generation sites closer to the northern regions and sourcing electricity from neighbouring countries like Ethiopia the latter is much more   cost-effective and a more immediate solution to stabilize the grid,” he added.

In his explanation he said; “Tanzania does not physically transport electricity from Ethiopia like carrying a sack of potatoes on a truck. Instead, it takes its allocated share at the border.”

“We pay for the power at Namanga, which is cheaper than transmitting it from Tanzania’s generation hub in the south,” PS Mramba said, pointing out that there are no operational costs associated with the imported electricity.

According to the government, importing 100MW from Ethiopia will enable TANESCO to save 17MW that will in turn be used to meet power demand in Songwe Region.

Also Read: Arusha bets big on tourism with EAC’s largest conference center

Power trade across East Africa

The report says that in future, Tanzania may as well export electricity to Ethiopia. He also revealed that countries like Burundi, Rwanda and Zambia are looking to purchase electricity from Tanzania.

“This is part of a broader strategy to strengthen energy grids and resilience across Africa, similar to power trading practices in Europe,” the statement says.

Similarly, the ongoing Tanzania-Zambia transmission project that is currently at 50 per cent completion, will facilitate power flow from Tanzania’s southern regions, the report says. This project will service the market needs in the Democratic Republic of Congo (DRC) and Malawi as well.

However, the report underlines the fact that despite importing power, Tanzania remains a net electricity exporter. It also underscores that Tanzania is a member of regional power markets, including the Eastern Africa Power Pool (EAPP) and the Southern Africa Power Pool (SAPP), which promote cross-border electricity trade.

Power pools refer to networks of power plants that balance electricity supply and demand at regional and national levels.

Citing the relevance of power pools, Public Governance expert, Dr. Adam Mnyavanu of the Institute of Accountancy Arusha (IAA) seconded the view that Tanzania could also export its excess power to Southern Africa Power Pool (SAPP) members like Mozambique.

“The pools help lower transmission costs, especially in large countries or border areas. This approach allows reliable supply in distant areas. The government should provide detailed explanations to address public concerns,” he told press.

The government statement sums up; “Globally, power exchange is a standard practice and a key component of Tanzania’s long-term energy strategy. Additionally, as a member of the North Africa Power Grid, Tanzania benefits from lower electricity costs when buying from neighbouring countries.”

In his comments,  Dr. Isaac Safari an Economist at Saint Augustine University of Tanzania (SAUT) is of the view that “…power imports support regional integration by allowing countries to share resources efficiently.”

“This is an economically sound decision, considering that importing low-cost electricity helps lower operational expenses,” he told local press.

He also pointed out that the power trades are one of many other diplomatic ways that Tanzania can leverage to grow it’s diplomatic ties in the region.

“The world is interconnected, and borders should not prevent resource-sharing for development,” noted the economist.