Tanzania Diesel Generator Market - Segmented by Power Rating, End-User, and Geography - Growth, Trends, and Forecast (2018 - 2023)
The Government of Tanzania aims to connect 50% of its population to the grid by 2025, still leaving half of the population without power. The residential sector is the biggest power consumer in the country. Therefore, due to lack of grid electricity, off-grid electricity generation has become an important part of the country’s power generation, which heavily relies on diesel generators. Further, Establishment of SEZs and government’s infrastructure projects, such as railway and expansion of highways, are expected to further boost the demand for more than 75 kVA but less than or equal to 375 kVA diesel generators in Tanzania, during the forecast period.
Negative Effect of New Mining Laws on the Diesel Generator Market of Tanzania
A significant portion of the country’s mining sector depends on diesel generators for power supply, which contributes towards the demand for diesel generator with power ratings of more than 375 kVA. However, the new laws, which were fast-tracked through parliament, have increased royalty taxes on both uranium and gold, which is expected to negatively impact the Diesel generator market in coming years. Under the new law, the government is given the right to cancel and renegotiate existing contracts for both mining and energy companies if the terms are deemed “unconscionable”, and have removed the right for companies operating in Tanzania to seek international arbitration. Further, the government must have at least a 16% equity in all mining operations, and has the power to enforce new regulations, which require mining companies to list 30% of their equity on the Dar es Salaam Stock Exchange, by August 2017.
Growing Demand for Uninterrupted and Reliable Power Supply
Tanzania has been facing issues of power deficit and power cut, as its power sector infrastructure is still not fully developed. Therefore, to provide protection against a period of drought and to offset frequent outages, the nation relies on standby (emergency) generators. Despite the country’s abundant energy resources (natural gas, coal, uranium, and renewable energy), meeting the increasing demand is currently difficult, due to structural and operational shortcomings. The generator market in Tanzania is expected to grow, as the current demand for electricity in Tanzania far outstrips supply, and therefore, a large market for diesel generators exist in the country.
Increasing Demand for Diesel Generators with Power Rating Less than or Equal to 75 kVA
Less than or equal to 75 kVA diesel generators are used in the telecom sector, commercial complexes, small restaurants, small-scale industries, and petrol stations, among others, primarily as backup power in grid-connected areas and as the main power source in off-grid areas. The mobile telecommunications market has flourished in Tanzania owing to the launch of cheaper smartphones and data services, which in turn has positively impacted the demand for diesel generators in the country. According to the Tanzania Communications Regulatory Authority (TCRA), the number of mobile phone subscribers grew from 27.62 million in 2012 to 40.08 million in 2017. The network base station sites are usually connected to the commercial grid power supply or off-grid and are located in areas without access to grid power infrastructure. The off-grid sites use either DG-battery hybrid power systems, solar power systems or diesel generators as a backup power source.
Notable Developments in the Market
February 2018: Generac Holdings Inc. announced the signing of a purchase agreement to acquire the shares of Selmec Equipos Industriales SA de CV and its wholly-owned subsidiaries from Enesa Energia SA de CV and Enesa SA de CV.
The major players include - African Power Machinery (TZ) Ltd, Aksa Power Generation Tanzania, Car & General (Kenya) PLC, DEUTZ DIESELPOWER, Diesel Electric Services (PTY) Ltd, Ettes Power Machinery Co. Ltd, Jiangsu Starlight Electricity Equipment Co. Ltd, Mantrac Tanzania, Masterpower Generator Industry and Trading Inc., Merrywater Ltd, Pai Kane Group, Phoenix Diesel Power Ltd, Power Providers Tanzania, Shining Star Power Equipment & Machinery Trading LLC, and Sincro Sitewatch Ltd amongst others.
Reasons to Purchase this Report
Current and future Tanzania Diesel Generator market outlook
Analyzing various perspectives of the market with the help of Porter’s five forces analysis
The segment that is expected to dominate the market
Regions that are expected to witness fastest growth during the forecast period
Identify the latest developments, and strategies employed by the major market players.
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