Tanzania is advancing efforts to fortify regional energy security by building a grid interconnector with Zambia, a move aimed at mitigating Zambia’s escalating drought-induced power crisis. Speaking at the Singapore International Energy Week, Doto Biteko, Tanzania’s deputy prime minister and energy minister, confirmed that work on the interconnector commenced last month and is projected to take 36 months to complete.
“We have some interconnectors with our neighbours, Rwanda, Burundi, Kenya, and now we are pulling up an interconnector with Zambia, which will help us assist our neighbour in Zambia, who is facing a deadly drought,” Biteko stated during the conference. He further elaborated that Tanzania, as a member of the Eastern African Power Pool (EAPP), is poised to leverage this infrastructure to access a larger market for electricity trading. “Whenever we have excess electricity, we can sell it to our neighbouring countries,” Biteko added, underscoring Tanzania’s strategic position within the regional energy network.
This initiative represents a crucial development in a broader strategy of regional energy cooperation, dating back to 2014 when Kenya, Tanzania, and Zambia initially committed to spending $1.4 billion to link their power grids. The creation of this interconnected regional power pool was intended to streamline electricity trading and enhance energy security. Though the original target for completion was 2018, delays have shifted the timeline, with Tanzania’s latest efforts now pushing the project forward.
Zambia has been grappling with an acute energy crisis due to prolonged drought conditions that have drastically reduced water levels in key reservoirs, leading to significant shortfalls in hydroelectric power generation. The new grid interconnector will provide an essential lifeline for Zambia, whose reliance on hydroelectric power has made it especially vulnerable to climate-induced fluctuations.
Beyond regional energy initiatives, Biteko also provided an update on Tanzania’s $42 billion liquefied natural gas (LNG) export project. He revealed that the Tanzanian government is in the midst of negotiations with the project’s partners and operators, including Equinor and Shell, to finalise a Host Government Agreement (HGA). However, Biteko refrained from offering a specific timeline for when these negotiations might conclude.
The development of the Tanzania LNG project has been delayed due to proposed government amendments to the financial terms agreed last year. A government spokesperson clarified that the revisions to the HGA are intended to ensure equitable benefit-sharing between the state and the project’s international partners. The project, backed by Equinor, Shell, ExxonMobil, Pavilion Energy, Medco Energi, and Tanzania’s national oil company, TPDC, remains a cornerstone of Tanzania’s ambition to become a significant player in the global LNG market.
The Tanzanian government’s negotiation strategy reflects its intent to secure a fair share of revenue from the multi-billion-dollar LNG export facility. However, the delay underscores the complexities of balancing national interests with the financial demands of large multinational corporations in the energy sector.
Tanzania’s broader energy initiatives, both within the East African region and in the global LNG market, are indicative of the country’s growing influence in the energy landscape. As East Africa continues to grapple with the effects of climate change and energy insecurity, Tanzania’s investments in regional grid interconnectors and LNG development place it at the heart of efforts to stabilise and diversify the energy supply in one of the world’s most rapidly developing regions.
