TANESCO’s Generation Division is responsible for all Power Generation functions owned by TANESCO 86.5%, both National Grid-connected and off - Grid Stations. Other sources of generation are from independent power producers (IPPs) and EPPs 13.50%, 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 60.27% total installed capacity while Hydro Plants contributes 33.91 %, Biomass 0.62% and Diesel comprise 5.20%

The Hydro - Plants are all interconnected with the National Grid System and their installed capacity for each station are as follows: Kidatu 204 MW, Kihansi 180 MW, Mtera 80 MW, New Pangani 68 MW, Hale 21 MW, Uwemba 0.843 MW and nyumba ya Mungu 8 MW, totaling to 574.60 MW.

Thermal Gas and Disel Generation Grid Connected with Capacity Totaling 1,021.32 MW is from Kinyerezi I Gas Plant (150 MW), Kinyerezi II Gas Plant (248.22 MW), Ubungo I Gas Plant (102 MW), Ubungo II Gas Plant (129 MW)Ubungo III Gas Plant (112 MW),Tegeta Gas Plant (45 MW), Somanga Gas Plant (7.5 MW), Mtwara Gas Plant (22 MW), Zuzu Dodoma Diesel Plant (7.44 MW), Nyakato Plant (63 MW), Ngara (2.50 MW), Biharamulo (4.14 MW), Songea (7.67 MW), Mbinga (2.00 MW), Ludewa (1.27 MW) and Namtumbo (0.34 MW), Liwale (0.848 MW), Tunduru (2.996 MW, Madaba (0.476 MW).

Off-Grid Diesel Station Total Capacity is 32.332 MW from Bukoba (2.56 MW), Inyonga (0.476 MW), Kasulu (2.50 MW), Kibondo (2.50 MW), Kigoma (8.25 MW), Loliondo (3.750 MW), Mafia (1.89 MW), Mpanda (5.406 MW), Sumbawanga (5.00 MW).