Tanzania aims to have six times its current power generation capacity by 2025 through investment in thermal and renewable energy, deputy energy minister Subira Mgalu told Parliament on Tuesday.
The East African country boasts reserves of over 57-trillion cubic feet of natural gas, but faces periodic power shortages.
Investors have long complained that a lack of reliable power hurts business in the country.
"Implementation of various power generation projects will increase the capacity of our national power grid from 1 602 MW presently to 10 000 MW by 2025," Mgalu told Parliament.
Tanzania has said it plans to export surplus electricity to energy-starved nations in eastern and southern Africa once it has boosted its generation capacity.
"We need to have abundant and reliable power from an energy mix that includes hydropower, natural gas, solar and wind," Mgalu said.
The government awarded a tender last year to a joint venture of Egyptian companies, El Sewedy Electric Co and Arab Contractors, to build a $3-billion hydroelectric plant at Stiegler's Gorge that will produce 2 100 MW upon completion in three years time.
Conservationists oppose construction of the power plant in a world heritage site and an independent study has suggested the cost could rise to up to $9.85-billion.