Tanzania allocates Sh25 billion for geothermal drilling

Tanzania is intensifying efforts to diversify its energy sources by allocating Sh25 billion to geothermal drilling projects through the Tanzania Geothermal Development Company (TGDC). This funding will support ongoing drilling at the Ngozi geothermal project in Mbeya Region and preparations for operations at the Kiejo-Mbaka project in Songwe Region.

Other projects, including Luhoi in the Coast Region and Natron, are in the exploration phase, undergoing scientific studies and preliminary preparations. TGDC Acting Managing Director Shakiru Kajugus stated that the company plans to drill three wells at the Ngozi project this financial year, each reaching approximately 1.5 kilometers deep. "We have been allocated Sh25 billion for drilling activities this financial year. This is a long-term undertaking that spans several years, with funding allocated according to the stage of project implementation," Kajugus said.

Kajugus explained that TGDC is currently in the critical geothermal resource confirmation stage before electricity generation begins. The projects are part of Tanzania's national goal to generate 130 megawatts (MW) of geothermal power by 2030. The Ngozi project is expected to contribute 70MW, while Kiejo-Mbaka is projected to produce 60MW. Implementation remains on track despite electricity production not yet starting.

Acknowledging that limited local expertise is a challenge due to geothermal technology being relatively new in Tanzania, TGDC is partnering with higher learning institutions to build local capacity and develop future specialists in the sector.

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We have been allocated Sh25 billion for drilling activities this financial year. This is a long-term undertaking that spans several years, with funding allocated according to the stage of project implementation.