Moving along with its plans to more than double electricity production over the next four years, Tanzania is considering expressions of interest by two companies to each build a 200-megawatt gas-fired power plant that will help reduce energy deficit in the East African nation.
The Indian based firm, BS Ltd and Kamal Steel Ltd, a closely held Tanzanian metal manufacturer, may build plants at Bagamoyo, about 60 kilometers northwest of the commercial capital, Dar es Salaam, Energy and Water Utilities Regulatory Authority Director-General, Felix Ngamlagosi said.
"The companies are among several other companies that are interested in developing small power projects," he said.
Tanzania, East Africa's second-biggest economy, plans to more than double electricity production over the next four years by building at least four power plants including the 600-megawatt, coal-fired Mchuchuma facility, according to the regulator.
Only 18 percent of Tanzanians have access to the electricity grid, which the country plans to increase to 30 percent by next year.
The introduction of new plants will help reduce electricity costs, Mr. Ngamlagosi said. The average price of power in Tanzania is $ 0.17 per kilowatt hour, according to the regulator. That compares with an average of $ 0.14 per kilowatt hour for the African continent and $ 0.07 in East Asia, according to African Development Bank data.
"We are sure the price of electricity will slow down but this would depend on the economics of the pipeline project and the associated power plants," Mr. Ngamlagosi said.
Tanzania expects to complete construction of a gas pipeline to the port town of Mtwara that will feed the 240-megawatt Kinyerezi plant by the end of this year.
The government may also consider subsidizing solar-power production after it has completed a policy paper on the alternative energy source, Mr. Ngamlagosi said.
The Indian based firm, BS Ltd and Kamal Steel Ltd, a closely held Tanzanian metal manufacturer, may build plants at Bagamoyo, about 60 kilometers northwest of the commercial capital, Dar es Salaam, Energy and Water Utilities Regulatory Authority Director-General, Felix Ngamlagosi said.
"The companies are among several other companies that are interested in developing small power projects," he said.
Tanzania, East Africa's second-biggest economy, plans to more than double electricity production over the next four years by building at least four power plants including the 600-megawatt, coal-fired Mchuchuma facility, according to the regulator.
Only 18 percent of Tanzanians have access to the electricity grid, which the country plans to increase to 30 percent by next year.
The introduction of new plants will help reduce electricity costs, Mr. Ngamlagosi said. The average price of power in Tanzania is $ 0.17 per kilowatt hour, according to the regulator. That compares with an average of $ 0.14 per kilowatt hour for the African continent and $ 0.07 in East Asia, according to African Development Bank data.
"We are sure the price of electricity will slow down but this would depend on the economics of the pipeline project and the associated power plants," Mr. Ngamlagosi said.
Tanzania expects to complete construction of a gas pipeline to the port town of Mtwara that will feed the 240-megawatt Kinyerezi plant by the end of this year.
The government may also consider subsidizing solar-power production after it has completed a policy paper on the alternative energy source, Mr. Ngamlagosi said.
