Abstract:Tanzania is facing challenges in energy provision with a lot of people leaving in rural areas experiencing energy poverty exhibited by lack of access to electricity, therefore relying on traditional fuels for cooking and lighting. In Tanzania, the electricity access has risen from 18.4% in 2013 to 24% in 2015. Power generation remained generally stable in 2013 which contributed 7.3% to the growth of the National economy. In 2014 the estimates shows that the National economy grew by 7.2%, and is projected to reach 7.4% in 2015. It is reported that, the electricity demand in Tanzania is about 7% per year over the past 10 years. A large proportion of majority of rural population is located far away from the National grid and it is un economical to connect to the grid. The main objective of this paper is to examine renewable energy policies and practices in Tanzania and their contribution to Tanzania economy and poverty alleviation. The study focused on content analysis of projects reports and policy in 10 years. Tanzania has drafted renewable energy policies so as to shift dependence from hydropower which is many times affected by draught and weather patterns and petroleum that have been affected by price fluctuation to solar, wind, biogas and other biomass which are renewable. However, the adoption rate of these renewable energy technologies is low because of financial constraints, lack of awareness, lack of coordination between the Government, non Governmental organizations and private sectors. Existing renewable energy policies should be harmonized and the current practice should be evaluated so as to upgrade the adoption rate of renewable technologies.