Global Geothermal Power: Policies, Funding, Wells, Strengths, Opportunities and Barriers Geothermal is moving into a broader investment cycle. In 2026, the story is no longer limited to volcanic power plants in a few classic markets; it now includes enhanced geothermal systems, closed-loop designs, district heating, superhot rock, lithium from brines and industrial heat. Across the United States, Canada, Germany, the United Kingdom, Australia, New Zealand, Japan, Iceland, France and Italy, the sector is being shaped by a simple question: who is de-risking the first wells, and who is ready to finance the next ones? United States: the next-generation testbed The United States has the broadest geothermal innovation ecosystem in this group, with a mature conventional base in the West and a fast-growing next-generation pipeline. The main policy signal in 2026 is the Department of Energy’s US$171.5 million funding opportunity for next-generation geothermal field-scale tests, exploration...
Tanzania Embraces Geothermal Energy: A Path to Sustainable Power
Tanzania is taking bold steps toward a cleaner, more reliable energy future by prioritizing geothermal power development. During a recent address at the International Renewable Energy Agency (IRENA) Annual Meeting of the Global Geothermal Alliance (GGA) in Abu Dhabi, United Arab Emirates, Minister for Energy Deogratius Ndejembi reaffirmed the government’s firm commitment to geothermal energy as a key pillar of the country’s energy mix.
The minister emphasized that geothermal will help deliver sufficient, affordable, and sustainable electricity while supporting global efforts to transition to clean energy systems. This strategic focus is embedded in major national and international frameworks, including Tanzania’s Development Vision 2050, the 2015 National Energy Policy, the United Nations Sustainable Development Goals (SDGs), and the country’s Nationally Determined Contributions (NDCs) under the Paris climate agreement.
Unlocking Tanzania’s Geothermal Riches
Tanzania is geologically blessed, sitting along the Great Rift Valley one of the world’s most active tectonic zones and a hotspot for geothermal resources. Experts estimate that the country has the potential to generate up to 5,000 megawatts (MW) of electricity from geothermal sources, offering a stable, baseload renewable energy option that is not affected by weather conditions like hydropower or solar.
To date, 52 geothermal sites with strong surface indicators have been identified across 16 regions of the country. These span areas including Mbeya, Arusha, Iringa, Kilimanjaro, Dodoma, and beyond, demonstrating the widespread nature of this valuable resource.
Flagship Geothermal Projects Underway
The Tanzania Geothermal Development Company (TGDC), a specialized entity under the Tanzania Electric Supply Company (TANESCO), is spearheading exploration and development. Five priority sites have been selected for accelerated advancement:
Ngozi – Targeted capacity of 70 MW (Mbeya region)
Kiejo-Mbaka – Planned for 60 MW (also in Mbeya)
Songwe – Estimated potential of 5–38 MW
Natron – 60 MW capacity target (near Lake Natron, Arusha region)
Luhoi – Smaller-scale project with 5 MW potential
These projects are at various stages of surface exploration, slim-hole drilling, environmental impact assessments, and feasibility studies. Ngozi and Kiejo-Mbaka are considered the most advanced and are expected to form the backbone of the country’s first major geothermal power generation.
Clear Targets: First Geothermal Plant by 2030
Minister Ndejembi announced an ambitious yet achievable goal: to commission Tanzania’s first geothermal power plant with a combined capacity of 130 MW by 2030. The initial phase will begin with 30 MW of generation, likely drawn from the Ngozi and Kiejo-Mbaka developments. Recent estimates suggest that investments totaling more than Sh1.48 trillion (approximately $600 million USD) will be required for these two flagship projects alone.
Once operational, this new capacity will help meet rising national electricity demand (which has exceeded 1,900 MW peak in recent years), reduce reliance on drought-vulnerable hydropower, and provide cleaner baseload power to the grid.
Broader Benefits of Geothermal Development
Geothermal energy offers more than just electricity. It supports **direct-use applications** such as greenhouse heating, crop drying, fish farming, spas, and industrial processes—opportunities that can stimulate local economies, create jobs, and improve livelihoods in rural areas near geothermal fields.
Additionally, geothermal is a low-carbon energy source that enhances energy security, reduces greenhouse gas emissions, and builds resilience against climate change impacts. These advantages make it a strategic fit for Tanzania’s long-term sustainable development objectives.
Challenges and Opportunities Ahead
While the potential is enormous, geothermal development requires significant upfront capital, specialized technical expertise, and robust infrastructure. Tanzania is addressing these hurdles through international partnerships with organizations such as IRENA, the African Rift Geothermal Development Facility (ARGeo), and the Global Geothermal Alliance, as well as by encouraging private sector participation.
As the country moves forward, it joins regional leaders like Kenya, which has already become one of the world’s top geothermal producers, in tapping into the East African Rift’s vast renewable energy wealth.
Tanzania’s geothermal journey represents a forward-thinking investment in energy independence, economic growth, and environmental stewardship. With clear targets, strong policy backing, and growing international support, the country is well-positioned to realize its vision of a diversified, sustainable energy mix in the coming decades.
What do you think about Tanzania’s geothermal ambitions? Feel free to share your thoughts in the comments!
This article is based on statements by Minister Deogratius Ndejembi, updates from the Tanzania Geothermal Development Company (TGDC), and reports from IRENA and regional energy platforms (as of January 2026).
Source: Daily News Tanzania
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