dimanche 2 novembre 2008

Tanzania says needs to add 70 MW yearly to grid

Tanzania's State-run power utility has to add about 70 MW annually to its grid and requires 1,5-trillion shillings in the next five years to boost operations, it said on Tuesday.

Tanzania Electric Supply Company (TANESCO) said the east African country's capacity stands at 600 MW, just over the average power demand of 570 MW, but below peak demand of 700 MW.

The utility forecasts demand growing at about eight to 10% annually.

"Taking into account the current demand, this translates to a requirement of about 70 MW of additional generation every year into the power system. The grid system is operating with inadequate reserve," Idris Rashidi, TANESCO MD, said in a statement.

TANESCO has an installed capacity of 1 212 MW, of which 562 MW is from hydropower dams. Not all of this capacity is regularly available, partly due to intermittent rainfall.

It projects annual demand will grow to more than 1 100 MW by 2010.

It currently generates 100 MW from natural gas at a plant in Dar es Salaam, and plans to add another 45 MW from natural gas to the grid by 2009 and another 200 MW the following year.

Rashidi said the company needed to invest a substantial amount of money in the next five years to improve power production, transmission and distribution.

"The stumbling block of all the power expansion plans is the unavailability of timely financing for the required power projects. TANESCO needs over 1,5-trillion shillings to execute its expansion plan over the next five years," Rashidi said.

Tanzania experienced serious power cuts in 2006 after drought slashed hydro power production.

Rashidi said that another challenge was that a 40 MW plant that British power firm Aggreko has been running in Dar es Salaam since 2006 was due to be decommissioned by the end of the year.