DAR ES SALAAM (Reuters) - Tanzania has no surplus power on its national grid now and any plant breakdown would lead to rationing, President Jakaya Kikwete said. Peak demand in the east African economy stands at about 787 megawatts (MW) versus 595 MW available on the grid. State-run Tanzania Electric Supply Company (TANESCO) sees demand rising to 1,331 MW against 1,445 MW capacity by 2014. "Based on experts from TANESCO, the country at the moment has no surplus power production capacity. Due to that, anytime there is a shortfall in generation for whatever reason it leads to power rationing," he said in a speech late on Wednesday. Kikwete said TANESCO plans started in 2007 to boost power generation and distribution had fallen behind schedule. Last week the government said it needed about $1.5 billion over the next five years to improve production and transmission. The government said plans for a 200 MW coal power plant due to start operation by 2011 had already been delayed, while a 300 MW natural gas-powered project was struggling to secure funds. Kikwete warned of hard times in the east African country, where 14 percent of its 40 million population is connected to the grid and demand is growing by 10 to 15 percent annually. "The delays in those projects are a sign that in not a very long time the state of power production will deteriorate, even if all the plants currently functional are generating electricity," he said. In late February, TANESCO said it needed to add 105 MW to its grid each year to meet rising demand, but faced delays in building the new plants needed to meet the target. Tanzania produces most of its power from hydro dams, while it generates close to 300 MW from natural gas at a deposit on an island off its coast. It suffered extensive power cuts in 2006 after a drought slashed hydro-power production. Kikwete said a 33 MW natural gas turbine at a plant in Dar es Salaam had broken down and it would take two to three weeks to fix, resulting in power rationing. | 
