THE government is in the 2024/25 financial year, plans to issue a total of 49.5bn/- in subsidies for the implementation of various alternative energy projects.

Dr Doto Biteko, the deputy prime minister and Energy minister, made this observation yesterday when presenting the ministry’s budget estimates for fiscal 2024/25, totalling 1.883trn/-.

This includes the second phase promotion of cleaner or sustainable cooking energy shifts, like the construction of natural gas supply infrastructure in public and private institutions serving more than 300 people per day, he said.

The government expects to spend 24.5bn/- in subsidies for alternative charcoal production for procuring machines for its production and a mobilisation effort with workshops, seminars and media appearances, he said.

The State Mining Corporation (STAMICO) will be subsidised to procure two machines to make low priced briquettes from coal dust and other combustible materials.

The Tanzania Prisons Service will be financed to complete its shift to natural gas in 211 operational centres, which includes hiring a consultant to assess where to source natural gas or other clean cooking energy, he stated.

Upwards of 10bn/- will be used in grants to implementers of 237 renewable energy projects like mini grids, for electricity generation plants reaching 10 megawatts from water, solar, wind or biomass, he explained.

The Rural Energy Agency (REA) is expected to reach 20,000 hamlets (parts of villages or settlements) with transmission lines in areas that are not serviced yet, he stated.

A total of 350bn/- of internal funds have been set aside to implement various initiatives such as preparation of tender folders, procurement of contractors, conducting feasibility studies and designing of projects, he further noted.

The government expects to spend 26.6bn/- from the International Monetary Fund (IMF) through its extended credit facility to implement a power supply project in unreached hamlets of Songwe and Kigoma regions, he said.

Power transmission infrastructure will be set up for 677 hamlets with medium voltage distribution lines totalling 726.24km, and low voltage distribution lines of 1,352 kilometres, plus installation of 653 transformers, he specified.

The government will also connect 14,352 early customers with power services, the senior minister added.