Govt allocates Sh25 billion for geothermal drilling projects

Dar es Salaam. The government has allocated Sh25 billion to the Tanzania Geothermal Development Company (TGDC) in the current financial year to support geothermal drilling projects and resource confirmation activities as the country intensifies efforts to diversify its energy sources.

The funding will facilitate continued drilling at the Ngozi geothermal project in Mbeya Region and preparations for drilling operations at the Kiejo-Mbaka project in Songwe Region.

Meanwhile, the Luhoi project in the Coast Region and the Natron project are undergoing scientific studies and preliminary preparations ahead of future development stages. TGDC Acting Managing Director, Shakiru Kajugus, revealed this in an interview at the ongoing 50th Dar es Salaam International Trade Fair (DITF).

He said the company plans to drill three wells at the Ngozi project during the current financial year, which began on July 1, with each well expected to reach a depth of about 1.5 kilometres underground. “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,” he said. Mr Kajugus explained that TGDC is currently at the geothermal resource confirmation stage, a critical process conducted before electricity generation begins.

He said the Luhoi and Natron projects remain in the exploration phase and are undergoing geological, geochemical and geophysical investigations before drilling sites are identified. The projects form part of Tanzania’s target of generating 130 megawatts (MW) of geothermal power by 2030, as outlined in Vision 2050 and other national development strategies.

According to Mr Kajugus, implementation remains on course despite electricity production not yet starting. “We are still on track. The Ngozi project is expected to generate 70MW, while Kiejo-Mbaka is projected to produce 60MW,” he said.

He acknowledged that limited local expertise remains a challenge, noting that geothermal technology is still relatively new in Tanzania. However, TGDC has partnered with higher learning institutions to build local capacity and develop future specialists in the sector.