|Developing coal based energy in Tanzania|
|The need for coal in Tanzania
In 2010, Tanzania had an installed electricity generation capacity of 887 MW, only 660 MW of which was available to the Grid. In the same year, electricity demand exceeded available capacity by 33.2%.
Tanzania's annual power demand is expected to increase between 11%-13% over the coming years due to a combination of current power deficit, urbanisation, population growth and improving standards of living. Studies indicate the demand for electricity is expected to increase from 925 MW to at least 3,800MW by 2025.
Much of Tanzania's electricity (approx. 60%) is generated from four hydro-powered stations which, in addition to the usual seasonal variations in rainfall, are experiencing an increase in the occurrence and intensity of droughts. This significantly reduces Tanzania's generating capacity (to between 25 and 45 percent during severe droughts) causing extensive and severe power outages.
Population growth and expansion of agricultural activities has increased competition over water resources and this will further impact electricity generation. Energy security is of high-level concern to the Government and various initiatives are underway to strengthen Tanzania's position with respect to its domestic power supply.
In the last 7 years the Tanzanian electricity industry has achieved limited success in diversifying its energy feedstock mix and it is recognised that coal fired power electricity generation will play a major role in the future. Coal-based power is scaleable and flexible enough to plug any gaps in generating capacity. Coal fired power is the most widely used means of electricity generation in the world providing 41% of global electric power (source: World Coal Association) and the technology is proven and well understood. Coal fired power stations have a relatively low capital cost, construction time is relatively short and, at the end of operations, have low remediation costs.
Edenville Energy's assets in the Rukwa Coalfields could potentially help diversify Tanzania's energy feedstock in partnership with a power provider.
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