United Republic of Tanzania
Rural Energy Agency
(REA)
Lighting Rural Tanzania Competition (LRTC)
Overview on Strategies for Improving Access to Modern
Energy Services in Rural Areas of Tanzania
Cuthbert Z. M. Kimambo
Department of Mechanical and Industrial Engineering
College of Engineering and Technology (CoET)
University of Dar es Salaam (UDSM)
P. O. Box 35131, Dar es Salaam, Tanzania
Email: kimambo@udsm.ac.tz
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OUTLINE OF THE PRESENTATION
• Introduction
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Background Information
Current Energy Situation
Socio-Economic Situation of Tanzania
An Overview of the Industrial Sector in Tanzania
Technology and Innovation
• Policy and Legal Framework for Rural Energy in Tanzania
• Present Scope of Renewable Energies
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Global Situation
Initiative to Promote the Use of Renewable Energy in Tanzania
• Proposed Strategies for Improving Access to Modern
Energy Services in Rural Areas of Tanzania
• Concluding Remarks
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Introduction
• Key challenge is to increase
competitiveness while implementing
ecologically friendly and socially
acceptable development programmes.
• The objective is to encourage higher value
addition activities while preserving the
available natural resources through the
development and application of innovative
technologies.
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Introduction / Continued
• Economic development of modern
societies is crucially dependent on energy.
• The way this energy is produced, supplied
and consumed strongly affects the local
and global environment and is therefore a
key issue in the sustainable development.
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Current Energy Situation
• Industialization is hampered by inadequate
availability of energy.
• Communication, health facilities, shelter and
other basic needs are very much restrained,
particularly in rural areas.
• The price of energy is another factor which
makes it affordable or otherwise for the poorer
sections of the community.
• Electricity supply in Tanzania consists of both
interconnected and isolated systems.
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Current Energy Situation / Continued
• Generation options are based on hydro, natural
gas, diesel/heavy fuel oil, coal, biomass, solar PV
and wind.
• In the recent past there has been a shift from the
over-reliance on hydro generated electricity, as it
resulted into unreliability in the event of draughts.
• National energy demand is characterized by a
low per capita consumption of commercial energy
and a high dependence on non-commercial
energies including firewood, charcoal and biowaste to meet fundamental and basic needs.
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Current Energy Situation / Continued
• Vast majority of the population has low
purchasing power and depends mainly on wood
fuel for cooking and kerosene for lighting with
detrimental effects on the environment (high
deforestation rate) and health, particularly of
women and children.
• Conventional options:
 Atomic energy,
 Hydropower and
 Thermal energy (from coal, more recently
natural gas)
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Current Energy Situation / Continued
• Conventional options: Issues of concern
 Unresolved problems with the disposal of atomic
waste
 Oil crises - recent steep price
increases/fluctuations of crude oil adversely
effecting particularly poorer countries
 Growing concern for the adverse effects of fossil
fuels/carbon emissions on climate change
• In the longer term, renewables must provide a
large and eventually the dominant part of the
world energy mix
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Current Energy Situation / Continued
• In Tanzania, 80-85% of communities are
structurally excluded from access to minimal
energy supply.
• Villages adjoining the main grid represent a very
small fraction of the more than 8,000 villages and
about 6 million rural households in the entire
country.
• Highly isolated and dispersed population makes
transmission, distribution and connection costs
quite high and commercially unviable in the shortand medium term
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Current Energy Situation - The Way Forward
• Focus should be on off-grid, stand-alone renewable energy
based power generation systems, whose cost is already
competitive.
• The rationale is that rural electrification can be realized
with off-grid, stand-alone systems.
• Relatively high up-front cost barrier to electrification by
means of renewable energies
• Appropriate mechanisms have to be found to initially
subsidize these investments in tandem, however, with the
inculcation of a savings mentality/behaviour amongst the
beneficiaries.
• Pro-active promotion and marketing - resulting into
completely viable commercial chains
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An Overview of the Industrial Sector in Tanzania
• SME are the emerging private sector and a
base for private-sector-led growth.
• At present the sector is largely informal,
under-performing and in need of
considerable assistance to overcome
entrenched disadvantages and barriers.
• Key weaknesses relate to technology,
training, organization and management,
information, marketing, and finance.
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Technology and Innovation
• An analysis of the Tanzanian Innovation System
in its present form yields the following:
 Rather weak and underdeveloped National
Innovation System (NIS).
 High degree of fragmentation, isolation and
even competition instead of an
institutionalized collaboration,
partnership/networking and a culture in the
sharing of information and knowledge..
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Policy and Legal Framework for Rural Energy
• The Tanzania Development Vision 2025
• Sustainable
Industrial
Policy-SIDP (1996-2020)
Development
• The National SME Development Policy
(2003)
• The National Energy Policy (2003)
• The Electricity Act (2008)
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The Tanzania Development Vision 2025
• Defines the overall national development
goal is ‘to attain sustainable human
development’.
• In order to achieve sustainable development,
‘environmental protection must constitute an
integral part of the development process’
(Principle 4 of AGENDA 21).
• ‘Eradicating poverty is an indispensible
requirement for sustainable development’
(Principle 5 of AGENDA 21).
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Sustainable Industrial Development PolicySIDP (1996-2020)
• Recognizes the role of the private sector as the
principle vehicle in carrying out direct
investment in industry.
• Accords specific emphasis to the promotion of
SME, encouraging informal sector businesses
to grow and formalise.
• Measures to enable indigenous entrepreneurs,
including women, youth and other
disadvantaged groups, to take part in economic
activities.
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The National SME Development Policy (2003)
• Aims to create an enabling business environment as well
as to strengthen and network institutions that can
address the constraints and at the same time seize the
opportunities that determine the growth and the standard
of performance of the SME sector.
• Strategies proposed in the Policy for the promotion of the
SME sector include:
 Investments in technology transfer;
 Building capacity for entrepreneurial and managerial
skills training for SME; and
 Facilitating the diffusion of technically feasible and
economically viable technologies.
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The National Energy Policy (2003)
• Promote the application of alternative energy sources other
than fuelwood and charcoal.
• Promote entrepreneurship and private initiatives in the
production and marketing of products and services for rural
and renewable energy.
• Electrification of rural economic centres and make
electricity accessible and affordable to low income
customers.
• Increased availability of energy services, including grid and
non-grid electrification to rural areas.
• Establish norms, codes of practice, standards and
guidelines for cost effective rural energy supplies.
• Research and development on rural energy.
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The Electricity Act (2008)
•
Deals with rural electrification in terms of both
on- and off-grid electricity supply systems
including renewable energy options.
•
Within the framework of the Rural
Electrification Plan and Strategies, the
Minister concerned, in consultation with Rural
Energy Agency shall prepare Rural
electrification Plan and Strategies and submit
an annual progress report to the National
Assembly.
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Present Scope of Renewable Energies
Renewables Global Status Reports - 2009
• Modern renewable energy industry is a “guaranteed growth”
sector and even “crisis-proof”.
• “Policymakers have reacted to rising concerns about climate
change and energy security by creating more favorable policy
and economic frameworks, while capital markets have
provided ample finance for development and deployment”.
• “The recent growth of the sector has surpassed all predictions,
even those made by the industry itself”.
• However, the world is still far from the political pledge made in
2002 at the World Summit on Sustainable Development
(WSSD) to substantially increase the share of renewables in
the global energy mix.
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Initiative to Promote Renewable Energy in Tanzania
• Transformation of the Rural PV Market in
Tanzania Project (UNDP/GEF/MEM)
• Sida/MEM Solar PV Project.
• Global Village Energy Partnership (GVEP)
• ‘Promotion of Renewable Energy in Tanzania’
(PRET)
• The Scaling up Modern Energy Services in East
Africa
• World Bank Energy Access Expansion
Programme (EAP)
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Proposed Strategies for Improving Access to Modern Energy
Services in Rural Areas of Tanzania
1.
2.
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12.
The Role of Government
Link to Ongoing Initiatives
Technology Transfer
Education and Training
Networking
Technological Intermediaries
Target Group Orientation and Participation
Collaboration and Partnerships
Intellectual Property
Gender Considerations
Environmental Aspects
Learning from Best Practices
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The Role of Government
• Much has been achieved in terms of improving
the macro-economic environment in Tanzania.
• Policy initiatives are numerous; the policy
framework and its overall context are supportive
and are intended to trigger development also at
micro economic level.
• Good policies (and regulations to enforce them)
are necessary, but not sufficient condition of
socio-economic development - they have to be
rigorously implemented.
• It is equally important to get policies right in
terms of resource allocations.
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The Role of Government / Continued
• Technology diffusion to the taget group - small
enterprises (as multiplicators) and end-users
(the beneficiaries) - has primarily to be a public
sector function, with the government having to
take a (if not the) leading role.
• Respective Ministries (particularly MEM and
MITM) shouldbemade to fully understand their
role as government commitment, pro-active
support and involvement.
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The Role of Government - Key Issues and Actions
• Higher priority to renewable energy technologies in the
pursuance of energy, SME development, community
development and environmental policies.
• Translation of the political will into budgetary allocations to
renewable energy programmes.
• Action to ensure that environmental benefits of renewable
energies are properly recognized in energy prices.
• Action to ensure that wide-spread and effective incentives are
available to stimulate initial application of renewables,
• Provision of resources for the continued development of
renewable energy sources.
• Enhancement of commercial technology transfer links and
mechanisms between industrialized countries during
intergovernmental negotiations.
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Key Issues and Actions - Continued
• Introduce new laws and policy
provisions for renewable including:
 Policy targets,
 Subsidy programs,
 Feed-in tariffs that are favourable to
renewable energies and
 Renewable portfolio standards.
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Link to Ongoing Initiatives
• Promising initiatives/interventions (but largely
uncoordinated) at national, regional and
international level towards improving rural
energy access in Tanzania already exist upon
which to build on.
• With regard to financing mechanisms, the
National Micro Finance Policy covers the
provision of financial services to small and micro
enterprises that are engaged in legal (i.e.
formal) economic activities countrywide.
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Technology Transfer
• Sourcing
proven
technology,
in
particular hardware, be it locally or
foreign sourced - this notwithstanding
the attempt to source proven technology
first
of
all
locally,
then
regionally/internationally.
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Education and Training
• Raise the level of education of the various
actors.
• Focus on vocational training and possibly
University graduates.
• Promote self-employment for graduates (middle
and high level)
• Focus on SME - more versatile, capable and in
tune with the needs of the people than big
companies.
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Networking
• At national level, the existing
platforms such as the renewable
energy industry association Tanzania Solar Energy Association
(TASEA) and the SME Cluster
Programme are possible avenues
for a networking strategy.
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Technological Intermediaries
• The interaction between enterprises and
technological intermediaries (R&D institutions)
in the country is weak and their impact of has
been marginal.
• The strategy shouldbe to address the factor
affecting them - including inadequate financial
resources, poor infrastructural facilities, policy
implementation, etc.
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Target Group Orientation and Participation
• Every effort has to be made ensure that the
target group participates actively in the
identification, development, planning and
implementation of the proposed activities so that
its problems and needs are adequately catered
for, and to enhance the sense of ownership.
• The target group is divided into two categories:
The multiplicators (i.e. the enterpreneurs), and
The (ultimate) beneficiaries (members of the
rural community)
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Collaboration and Partnerships
• Collaboration and/or partnerships should be
sought with organizations/institutions/agencies
including national organisations active in
offering services and supporting in matters
related the various aspect of of rural energy
access
• Enterprises dealing with renewable energy
technology in the country are potential
technological intermediaries/collaborating
partners andtherefore should be used as what
could be designated as centres.
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Intellectual Property
• Intellectual Property (IP) issues
should be adequately incorporated in
ruralenergy undertakings.
• Take advantage of the existing
framework and infrastructure for IP
protection.
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Gender Considerations
• Address the gravity of under- and unemployment,
especially in women (and youth) in urban as well as rural
areas.
• Address the gender imbalance of ownership particularly
in the technology-based SME sector, where most
enterprises are owned and run by men.
• Aspects relevant to women's interests and advancement
should an integral part of the rural energy access
intervention. The aim of promoting women is to improve
women's opportunities to perform their tasks/functions
effectively and share equally in the benefits of
development.
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Environmental Aspects
• Introduce environmentally sound
technologies in the form of renewable
energies in order to enhance the
competitive edge of SME within the East
African Region.
• Fully utilise the existing carbon trading
opportunities, including the Clean
Development Mechanism (CDM) and
others that exist.
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Learning from Best Practices
• Lessons and best practice experiences derived
from similar projects within the country and
internationally should be fully incorporated in
rural energy undertakings. Experiences such as
those learnt in the UNDP/MEM Transformation
of Rural Photovoltaic (PV) Market in Tanzania
Project and those from other countries such as
the so-called ‘Mother Licensee’ model that has
been used very successfully in India; and the
Bangladeshi - “Grameen Shakti” Model should
be explored.
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THANK YOU FOR YOUR ATTENTION
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