The firm was incorporated in 2006 as the successor of the State Fuel and Power Corporation and is wholly owned by the Revolutionary Government of Zanzibar.

In 1875[citation needed], the first coal fired generator was installed on the island to power Stone Town.

In 1954 the coal plants were abandoned and new diesel generators were installed by the British East Africa Company.

In 1980 the main island of Unguja was connected to the Tanzanian National Grid via a 132kV, 45MW sub-marine cable and the diesel generators were decommissioned.

Over the years the government continued to build small diesel generators to meet the growing demand.