We provide advice on the legal and regulatory regime of the energy sector, and advise clients setting up energy projects, such as wind farms, investors involved in the construction and operation of hydroelectric and gas power projects.
There is a growing demand for energy consumption in Tanzania, given the country’s rapid economic and population growth, and limited access to electricity. Current sources of energy supply in Tanzania include gas, coal, hydroelectric power and some solar and biomass fuel.
The recent discoveries of natural gas, and the potential exploitation of geothermal energy and other forms of renewable energy, have created vast opportunities for private investment in Tanzania.
The state owned entity Tanzania Electric Supply Company (TANESCO) has until recently retained a monopoly as the only utility company operating the national grid. The Government has through the Electricity Act, has lifted TANESCO’s monopoly, by allowing private sector involvement in the generation, transmission and distribution of electricity in urban and rural parts of Tanzania.
Regulation of this sector is undertaken by the independent state run entity, the Energy and Water Utilities Regulatory Authority (EWURA). EWURA’s extensive powers range from licensing, tariff review, monitoring performance and standards, to reviewing and approving power purchase agreements. Key legislation in Tanzania includes:
- National Energy Policy 2015
- Electricity Act 2008
- Energy and Water Utilities Regulatory Authority Act CAP 414
- Rural Energy Act 2005
- Environmental Management Act 2004