Smart grid set to boost Tanesco’s performance

Cape Town. Tanzania’s electricity utility, Tanesco, is set to undergo a major digital transformation, thanks to a pioneering collaboration with Nigerian technology firm Beacon Power Services (BPS), which is deploying a smart grid system designed specifically for African markets.

Speaking to The Citizen on the sidelines of the Africa Energy Forum in Cape Town, on Wednesday, June 18, 2025, BPS founder and chief executive officer, Mr Bim Adisa, said the initiative will help Tanesco to improve operational efficiency, reduce technical losses, and enhance customer service.

“Our solutions are built for Africa’s power utilities,” Mr Adisa said in an interview.

“Many software systems used in the sector are designed for other markets and don’t reflect the realities of African conditions. That’s why we built our own solutions and we’re proud to be working with Tanesco as well as with utilities in Nigeria, Ghana, and Zambia,” he added, BPS has already begun work on the first phase of its deployment in one of Tanesco’s districts – Ilala Municipality, Mr Adisa said.

The project involves creating a digital database of all the utility’s assets and customers, effectively mapping the entire electricity grid in that area.

“By the end of this month, we will have mapped every customer, every building, and every transformer in that district. The system will provide real-time visibility of electricity flow and notify technical teams of faults—even before they occur,” Mr Adisa explained.

The system integrates smart meters and predictive analytics that allow Tanesco engineers to identify weaknesses in the grid and take preventive action, reducing both outages and repair costs.

According to Mr Adisa, the ultimate goal is to create a fully digitised, intelligent power network—or smart grid.

Tangible benefits

Beyond tracking and fault prediction, the system will also improve revenue collection and cut technical losses, which are major challenges facing utilities across the continent.

“If a transformer is overloaded or imbalanced, it can fail—causing power cuts and expensive repairs,” Mr Adisa said.

“But with smart monitoring, Tanesco can detect issues early and fix them before any damage occurs. That means fewer outages for customers, lower maintenance costs for the utility, and greater reliability across the network.”

He also noted that the system will support revenue monitoring, enabling Tanesco to track electricity usage and income at regional levels.

This is expected to strengthen financial oversight and improve cash flow within the utility.

While the initial deployment is focused on a single district, the plan is to scale the project across the country over the next 18 months.

“Once phase one is complete, we’ll work with Tanesco on a national rollout,” Mr Adisa said. “For a utility the size of Tanesco, we estimate it will take about 18 months to digitise the entire network, moving district by district.”

Importantly, the solution is not just imported technology—it comes with a commitment to local capacity building. BPS has already hired around 25 Tanzanians and is training them to implement and manage the system, he said.

“This isn’t a plug-and-play import. We’re building a local team that will manage operations, support the system, and ensure sustainability. Local knowledge is critical for the success of this kind of transformation,” Mr Adisa emphasised.

Model for Africa’s power sector

BPS approach is garnering attention across Africa, not only for its technical innovation but also for its localisation model and tangible results. The company’s work in Nigeria, Ghana, and now Tanzania demonstrates that data-driven solutions can significantly improve power utility performance on the continent.

As Tanzania looks to modernise its energy sector and expand access to reliable electricity, digitising the grid may prove to be a decisive step. If successful, the BPS-Tanesco partnership could become a model for other African nations seeking to build smarter, more efficient power systems.