AN OVERVIEW OF ENERGY SECTOR IN RURAL TANZANIA

1. AN OVERVIEW OF ENERGY SECTOR IN RURAL TANZANIA Workshop on Innovations in Off-grid lighting products and Energy Services for Rural Tanzania 8TH TO 9TH APRIL 2010 By: N.C.X. Mwihava

2. OUTLINE • IMPORTANCE OF ENERGY • ENERGY RESOURCES IN TANZANIA • ENERGY CONSUMPTION PATTERN IN TZ • ENERGY CONSUMPTION IN RURAL TZ • ENERGY POLICY • POLICY ON RURAL ENERGY • OPERATIONALISATION NEP, 2003 • BARRIERS TO MODERN ENERGY SERVICES IN TZ • OPTIONS FOR MODERN ENERGY SERVICES TO RURAL TZ • CONCLUSION

3. IMPORTANCE OF ENERGY • ENERGY IS A BASIC NEED FOR HUMAN DEVELOPMENT • IT IS A MAJOR INPUT FOR SUCCESSFUL FAMILY AND FOR IMPLEMENTATION OF MKUKUTA, MKUZA, SECTOR POLICIES AND PROGRAMMES

4. ROLE OF ENERGY IN ACHIEVING THE MDGS Eradicate extreme poverty and hunger (G1 • agro products processing, handling, storage, preservation, mechanized agriculture, cooking, transport, employment in energy sector, etc.  Achieve universal primary education (G2) • Lighting, powering educational equipment, food preparation, retention of qualified techers & education personnel appropriately etc Promote gender equality and empowerment of women (G3) • Reducing women’s time for search of energy & food preparation.

5. Role of Energy in MDGs ctd. Improve maternal health (G5) • Food preparation, reducing women drudgery, transport, powering health facilities e.g. lighting labour wards, vaccine preservation, retention of qualified staff. Combat HIV/AIDS, malaria and other diseases (G6) • Powering awareness campaign equipment, production and preservation of drugs and preventive gadgets, powering health equipment, lighting and heating at health facilities

6. ENERGY RESOURCES IN TANZANIA These encompass: Biomass, hydropower, natural gas, coal, geothermal, wind, solar, nuclear and ocean based energy.

7. Biomass based energy • Sustainable biomass yield per annum is estimated at 24.3 million m3. • Annual demand is around 40 million m3 (for household) • Annual deficit is 15.7m3 that is harvested by causing deforestation (over 392,000 ha cleared) At 40m3/ha Currently total population relying on biomass fuels for cooking are: • Firewood 26,108,767 (79%) • -Charcoal 4,486,235 (14%). • In addition 2 million people are currently relying on firewood for lighting.

8. Biomass ctd. • Biomass is also used for processing agricultural crops, for rural industry and social services. • . Biomass meet 90% of energy needs • 40% cooking need in peri-urban areas • 96% cooking needs of rural population

9. ENERGY RESOURCES IN TANZANIA IN GENERAL

10. ENERGY RESOURCES IN TANZANIA ctd

11. ENERGY RESOURCES IN TANZANIA ctd

12. ENERGY CONSUMPTION PATTERN IN TZ • Traditional biomass dominate • Low level of electrification 85kWh/cap/yr • Insignificant use of non woody renewable energy.

13. ENERGY CONSUMPTION IN RURAL TANZANIA • Cooking - >90% wood fuel energy (per capita is 1 m3 p.a.), biogas, kerosene, gelfuel (motopoa), etc. • Lighting - > 2% kerosene, electricity, dry cell batteries, solar PV, biogas, firewood, candles (insignificant) etc. • Agro processing – woodfuel, solar, electricity (grid and captive generators)

14. Energy Consumption in rural Tanzania ctd. • Space heating – mainly woodfuel • Water heating – wood fuel & limited solar thermal • The poor spend about 35% of income on energy

15. ENERGY POLICY • The Energy Policy objective is to provide an input in the development process by establishing an efficient energy production, procurement, transportation, distribution, and end-user systems in an environmentally sound manner and with due regard to gender issues.

16. POLICY ON RURAL ENERGY AS PER NEP, 2003 §43. Support research and development; §44. Promote application of alternative energy sources other than fuelwood and charcoal, in order to reduce deforestation, indoor health hazards and time spent by rural women in search of fuelwood; §45. Promote entrepreneurship and private initiative in the production and marketing of products and services for rural and renewable energy;

17. Rural Energy Policy as per NEP 2003 ctd §46. Ensure continued electrification of rural economic centres and make electricity accessible and affordable to low income customers; §47. Facilitate increased availability of energy services, including grid and off-grid electrification to rural areas; §48. Establish norms, codes of practice, standards and guidelines for cost effective rural energy supplies.

18. NEP ON RENEWABLE ENERGY • Promote efficient biomass conversion and end-use technologies in order to save resources; reduce rate of deforestation and land degradation; and minimising climate change threats. • Introduce and support appropriate fiscal and financial incentives for renewable energy development to complement a “Rural Energy Fund”, whose support would include renewable energy programmes and projects. • Establish norms, codes of practice, guidelines and standards for renewable energy technologies, to facilitate the creation of an enabling environment for sustainable development of renewable energy resources.

19. ENERGY POLICY CTD. • Facilitate increased availability of energy services, including grid and off- grid electrification to rural areas. • Establish norms, codes of practice, standards and guidelines for cost effective rural energy supplies.

20. ENERGY POLICY CTD. • Ensure inclusion of environmental considerations in all renewable energy planning and implementation, and enhance co-operation with other relevant stakeholders • Support research and development in renewable energy technologies • Promote entrepreneurship and private initiatives in the production and marketing of products and services for rural and renewable energy.

21. POLICY SPECIFIC TO RURAL ENERGY • Given the importance and weight attached by the Government to rural energy, a specific policy on rural energy is in the making • The policy will take into consideration the NEP, experiences, reforms & challenges since the launching of NEP, 2003

22. OPERATIONALISATION OF ENERGY POLICY OF 2003 • Establishment of Rural Energy Agency/Fund to promote among others, renewable energy technologies– key elements would be efficiency, cost effectiveness, social and environmental acceptability. • The Rural Energy Act was passed in 2005, REA/REF are operational. • Electricity Act, 2008 has opened gates for private sector participation, to generate electricity from any source of energy as long as it is least cost • Introduction of SSPPA/tariff • Implementation of rural energy projects e.g. REA Flagship projects, MEM/UNDP-GEF PV, MZ, MEM/Sida PV, TEDAP/SSMP, TZ Domestic Biogas Program, etc.

23. BARRIERS TO MODERN RURAL ENERGY SERVICES IN TANZANIA • Inadequate awareness on rural energy issues & related technologies; • Affordability of the people • Sparsely distributed population; • Insufficient research, development & dissemination efforts;

24. BARRIERS TO MODERN RE ctd. • Inadequacy of comprehensive data on Rural Energy Resources & players; • Reluctance of the private sector to invest in rural energy (high risk/low returns); • Inadequate quality control of rural energy technologies leading to poor reputation of some technologies;

25. OPTIONS FOR MODERN ENERGY SERVICES TO RURAL TANZANIA • Electrification – c/o Rural electrification study recommendations • Grid extension, • Off grid - mini grids using NG, shp, biomass co-gen, solar PV/thermal, wind, geothermal • Stand alone systems - SHS, SSMP, wind, small scale gen sets • Thermal applications – modern bioenergy (biogas, co-generation, other solid & liquid biofuels, etc), solar thermal, coal briquettes, efficient wood-energy appliances & technologies/techniques, LPG, NG, • Mechanical power – modern bioenergy esp biofuels + ECE, wind, petroleum products (GO, IK, MSP, LPG, NG (LNG, CNG)

26. CONCLUSIONSOME OF THE RURAL LIGHTING OPTIONS [interior & exterior (security lights & street lighting] • Grid power • Mini grid power • SHS (PV) especially combined with LED • Solar lanterns • Solar thermal - electricity • Kerosene lamps • Biogas lamps • Liquid biofuels lamps • Dry cell batteries for torches

27. THANKS!