Tanzania rations power as turbine, transformer break

DAR ES SALAAM, Oct 8 (Reuters) - A broken natural gas-fired turbine and a damaged high voltage transformer have led to a 60 MW power deficit in Tanzania's grid and forced rationing, the state-run power utility said on Wednesday.

The east African nation, which is prized by investors for its political stability, suffered massive power cuts in 2006 after drought stunted hydro power production.

The Tanzania Electric Supply Company (TANESCO) made its latest announcement barely two weeks after calling off another round of power cuts after three gas turbines belonging to Songas -- another utility -- were shut down for emergency maintenance.

"TANESCO regrets to announce that a large transformer at its natural gas-powered plant in Ubungo (Dar es Salaam) has broken down, causing a 40 MW power shortfall at the plant," it said in a statement seen by Reuters on Wednesday.

TANESCO's plant at Ubungo has a 100 MW capacity.

The state-run utility said a 20 MW turbine belonging to British power firm Aggreko Plc (AGGK.L) has also broken down. Aggreko has a 40 MW plant in Dar es Salaam.

"Due to these two reasons, there has been a 60 MW power shortfall in the grid, forcing us to ration power," the statement said.

The power cuts will run for nine hours daily on alternate days between the commercial capital Dar es Salaam and eight other administrative regions.

TANESCO did not say how long it expected the cuts to last. The company plans to add another 45 MW from natural gas to the grid by 2009, followed by another 200 MW by 2010.

The firm has an installed capacity of 1,212 MW, of which 562 MW is from hydro dams, and forecasts annual demand to rise to more than 1,100 MW by 2010.

Songas's plant generates a total 190 MW. (Reporting by George Obulutsa; editing by James Jukwey)