Power Grid

Tanzania is moving forward with plans to construct a grid interconnector with Zambia, aimed at alleviating a power crisis exacerbated by drought conditions. Deputy Prime Minister Doto Biteko, who also serves as the energy minister, announced the initiative at the Singapore International Energy Week conference. He highlighted Tanzania's existing interconnections with neighboring countries such as Rwanda, Burundi, and Kenya, and expressed optimism that the new link with Zambia would provide critical support to their struggling energy sector.

The grid interconnector project is expected to take 36 months to complete, with construction having commenced last month. Biteko noted that as a member of the Eastern African Power Pool, Tanzania benefits from a larger electricity market, allowing it to trade power with neighboring countries when it has surplus capacity. This interconnectedness not only enhances regional energy security but also fosters economic collaboration among member states.

In addition to the interconnector project, discussions surrounding the $42 billion Tanzania LNG (liquefied natural gas) export plant are ongoing. Biteko mentioned that the government is in negotiations with project partners and operators to finalize the host government agreement. However, he did not specify a timeline for when these negotiations might conclude. The project had faced delays due to proposed changes to a financial agreement made last year.

The proposed amendments to the Host Government Agreement aim to ensure that both Tanzania and the project partners benefit equitably from the deal. The joint operators, Equinor and Shell, are collaborating with Exxon Mobil, Pavilion Energy, Medco Energi, and Tanzania’s national oil company TPDC on this significant project. The successful development of both the grid interconnector and the LNG plant is seen as crucial for boosting Tanzania’s energy resilience and economic growth.