7 November 2011: DAR ES SALAAM , TANZANIA - The Confederation of Tanzania Industries (CTI) has commended Aggreko PLC, for generating and injecting 100 MW into the country's national power grid to ease electricity shortage.
In an interview with this paper* recently, the Director of Policy and Research at CTI, Hussein Kamote, said the generation of power from its emergency generators in Dar es Salaam, Aggreko has partially addressed the devastating power blues which have gravely affected production in industries and small scale businesses, as well disrupted social lives since last year.
"The 100 MW to the national power grid is a good contribution. We hope it will minimise the power rationing problems by generating more electricity," he noted. However, he called on all companies that have shown interest to generate power to speed up installation of their generators. Mr Kamote was optimistic the government and other key stakeholders will help in the generation of power.
As of August this year the national grid had a shortfall of 260 MW which is inadequate when compared to the actual power demand which is estimated at 1000 MW.
Speaking in Dar es Salaam recently, the Deputy Minister in the Ministry of Energy and Minerals Adam Malima, said the power injection would significantly reduce the power deficit.
Aggreko has installed two 50MW diesel-powered plants at Ubungo and Tegeta in Dar es Salaam. Power generation contracts are generally expensive and most of the expenses including procuring fuel are met by the client company, the Tanzania Electric Supply Company Ltd (Tanesco).
The additional 100 MW to the national grid is expected to stabilize the power supply and reduce load shedding, and thereby support continued economic growth while Tanesco works to implement long-term solutions to improve power generation and distribution.
Tanesco Managing Director William Mhando welcomed Aggreko's injection of the 100 MW into the national grid saying: "This is a profound milestone in the economic growth of this country," he said. Aggreko's Managing Director Kash Pandya said his company was ready to add 50 MW more to the national grid if the Government permits the company to do so, adding, "We have another plant capable of generating 50MW right now at the port of Dar es Salaam".
In June this year, Aggreko won a $37 million contract to supply 100 MW emergency power for 12 months to Tanesco. Findings show that Tanzania's exports to the neighbouring countries has declined due to the current power shortages caused by prolonged drought which has dried up dams.
The Executive Director of the Tanzania Exporters Association (TANEXA), Mtemi Laurence, has been quoted saying, "Although we experienced a sharp increase in export to the neighbouring countries in recent years, but the power blues and drought are likely to impact negatively on the trend," he said.
The Tanzania government launched an emergency power rescue package that aims at adding 572 MW to the national power grid by the end of 2012 Typically, in a country looking to develop industrial projects starting from a low, base, every extra megawatt of power counts.
*Source: East African Business Week