TANESCO’s Generation Division is responsible for all power generation functions owned by TANESCO, both National Grid connected and off - Grid Stations. Other sources of generation are from independent power producers (IPPs) and EPPs, which feed the National Grid and isolated areas as well SPPs.

TANESCO’s Generation System consists mainly of Hydro and Thermal based generation. Whereby Thermal contributes the largest share of TANESCO's Grid power generation. Thermal power plants comprises 63% total installed capacity while Hydro Plants contributes 37%.

The Hydro - Plants are all interconnected with the National Grid System and their installed capacity for each stations are as follows: Kidatu 204 MW, Kihansi 180 MW, Mtera 80 MW, Pangani 68 MW, Hale 21 MW, Uwemba 0.845 MW and nyumba ya Mungu 8 MW, totaling to 561.84 MW.

Thermal generation totaling 954.4 MW is from Kinyerezi I Gas Plant (150 MW), Ubungo I Gas Plant (102 MW), Ubungo II Gas Plant (105 MW), Tegeta Gas Plant (45 MW), Dodoma Diesel Plant (7.4 MW) and Nyakato Plant (63 MW) as well as Independet Power  Producers (IPP's) contribution.

Off - Grid Station total capacity is 76 MW contributed by 16 isolated small Diesel Plants ranging from 250kW to 8000kW and two (2) Gas Plants of total 25 MW (Somanga 7,500kW and Mtwara 17,750kW).