Tanzanian strategy and law for geothermal development

Working alongside project leader Norton Rose Fulbright LLP, Carbon Counts has been requested to assist the Tanzania Geothermal Development Company (TGDC) in supporting the Government to strengthen its strategy, legal, financial and regulatory framework for geothermal energy development.

Tanzania’s geography – located on both the Eastern and Western branches of the East African Rift System – makes it a prime location to consider geothermal power generation. Interest in the technology has been around for a long time based on initial estimates of the resource potential of around 650 MW (in the late 1970’s). As such, like many East African countries, the Government of Tanzania has been pursuing a strategy for geothermal energy for a number of years, although progress has been slow.

In order to expedite development, the state-owned power utility company, TANESCO, established the TGDC in 2013 as a subsidiary company. Its role is to spearhead geothermal resources development, although it is still developing its strategy for developing and constructing such complex and long-term projects.

To support TGDCs goal, the strategy, legal and regulatory approaches to geothermal energy development by the Government of Tanzania needs to be clarified and reinforced to ensure that coordinated actions occur across government, and that a sound legal framework for the exploration and utilization of geothermal resources is in place.

The consortium* will be working closely with TGDC and the Ministry of Energy and Minerals over the coming months to support Tanzania in fulfilling its goal.

* Norton Rose Fulbright; Carbon Counts; GeothermEx; Economic Consulting Associates; Neema Siwingwa