Tanzania has commissioned a 2,115-megawatt hydropower plant that has more than doubled the country’s electricity generation capacity and created a substantial surplus that officials say could support power exports and industrial growth.
The Julius Nyerere Hydropower Project, Tanzania’s largest power plant, was inaugurated on Saturday by President Samia Suluhu Hassan.
Built along the Rufiji River at a cost of about 7.45 trillion Tanzanian shillings, equivalent to approximately $2.84 billion, the project is expected to transform the country’s electricity supply and reduce the power shortages that have historically disrupted economic activity.
Hassan said the plant had helped eliminate the electricity generation shortfall that previously contributed to frequent and economically damaging blackouts.
“We are confident that this project will increase opportunities for business, investment, and production, create jobs, and boost individual income and the national GDP as a whole,” she said.
The new facility takes Tanzania’s total electricity generation capacity to 4,646MW, compared with peak demand of 2,271MW.
This leaves an estimated surplus of 2,375MW, which the government says could be made available for electricity exports to neighbouring countries.
Energy Minister Deogratius Ndejembi said Tanzania was already discussing potential electricity exports with several countries, including Kenya and Zambia.
The additional generation capacity could also provide a more reliable electricity supply for businesses and industries, potentially supporting increased manufacturing, investment and economic activity.
The project, however, has a controversial environmental history.
Construction began in 2019 despite opposition from conservation groups, which raised concerns about the potential impact of the dam on wildlife and downstream habitats because the project is located on the Rufiji River, which runs through the Selous Game Reserve.
The reserve is one of Africa’s largest protected areas and is home to major populations of wildlife, including elephants, black rhinos and cheetahs, as well as diverse habitats, according to UNESCO.
Hassan acknowledged the controversy surrounding the project but defended the government’s decision to proceed with its construction.
“We had no way to abandon this project, given its importance to our nation,” she said.
The commissioning marks a significant shift in Tanzania’s energy position, with the country moving from dealing with electricity shortages to having substantial excess generation capacity.
Hydropower now accounts for about 60% of Tanzania’s electricity generation, while natural gas also provides a significant share of the country’s power supply.
With the Julius Nyerere Hydropower Project fully operational, Tanzania is positioning the additional electricity capacity as a tool for expanding industrial production, attracting investment, creating employment and increasing national income, while also exploring opportunities to become a regional electricity exporter.
