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TANZANIA’S EXPERIENCE ON THE INITIATIVES AND FINANCING MODELS IN THE ENERGY SECTOR

TANZANIA’S EXPERIENCE ON THE INITIATIVES AND FINANCING MODELS IN THE ENERGY SECTOR. PRESENTATION TO The UN GLOBAL CONFERENCE ON SCALING UP ENERGY ACCESS IN BEIJING, CHINA FROM 30 TH – 31 ST MAY, 2019 BY Eng. Innocent g. luoga Ag. commissioner for electricity and renewable energy

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TANZANIA’S EXPERIENCE ON THE INITIATIVES AND FINANCING MODELS IN THE ENERGY SECTOR

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  1. TANZANIA’S EXPERIENCE ON THE INITIATIVES AND FINANCING MODELS IN THE ENERGY SECTOR PRESENTATION TO The UN GLOBAL CONFERENCE ON SCALING UP ENERGY ACCESS IN BEIJING, CHINA FROM 30TH – 31ST MAY, 2019 BY Eng. Innocent g. luoga Ag. commissioner for electricity and renewable energy MINISTRY OF ENERGY - TANZANIA

  2. PRESENTATION OUTLINE • INTRODUCTION • A Country Overview • Tanzania Aspiration • Energy Targets • TANZANIA INITIATIVES TO ACCELERATES ENERGY ACCESS • Government Interventions • National Energy Policy 2015 • FINANCING MODELS IN THE ENERGY SECTOR • Public Financing and ODA • Private Sector Financing • ACHIEVEMENTS • CHALLENGES • MEASURES • CONLUSION

  3. 1. TANZANIA: A COUNTRY OVERVIEW

  4. Tanzania Aspirations TANZANIA DEVELOPMENT VISION 2025 • High quality Livelihood • Peace, Stability and Unity • Good Governance • A well Educated and Learning Society • A strong and Competitive Economy

  5. ENERGY TARGETS • Tanzania is one of the Least Developed Countries (LCD) estimated to be hosting about 57 million of which 75% lives in the rural areas. • Energy consumption in Tanzania is dominated by biomass (85%), Petroleum (9%), Electricity (5%) and Renewable Energies is 1% . Exploit all available energy resources • Increase generation capacity from 1,602 MW to 10,000MW by 2025 • Increase Electricity Accessibility from 67.5% to 75% by 2025; and 100% by 2030 as required by SDG7 • Increase Electricity Connectivity from 32.8% to 50% by 2025; and 75% by 2030 • Availability of Adequate, Reliable and Affordable energy supply.

  6. 2. TANZANIA INITIATIVES TO ACCERELATES ENERGY ACCESS • Establishment of Rural Energy Agency (REA) – 2005 • Emphasis: • Implementation of Rural Electrification Programs; • REA III – All villages to be electrified by 2021; • Tanzania Electric Supply Company Limited • Emphasis: • Implementation of Urban Electrification Programs; • Mega Projects; • Subsidies and Reduction of connection charges • Off Grid Connection by Private Sector • National Energy Policy (Update) – 2015 • Emphasis: • Energy mix; Energy efficiency; andRural energy access; • Improving business environment for private sector; • Local participation;

  7. TANZANIA INITIATIVE cont…. • Government Intervention and Political Will At national level we are implementing the following programmes and projects to support these initiatives: • Sustainable Energy For All (SE4ALL) • Scaling up Renewable Energy Projects (SREP): RERE and Geothermal Development • International Solar Alliance (ISA) • International Renewable Energy Association (IRENA) • Establishment of REA

  8. 3. FINANCING MODELS IN THE ENERGY SECTOR The following types of Energy Investment are used: • Government Financing 100% • Government to Government • Government to Private (Public Private Partnership - PPP) • Private Sector Financing (IPP) • Government with Official Development Assistance (ODA) • Grants • Loans

  9. FINANCING MODELS IN THE ENERGY SECTOR

  10. 4. Achievements • Retirement of Emergency Power Plants (EPP) which were expensive and polluting environment; • Contribution to expanding access to modern energy services in rural areas; • Enhanced private sector participation in rural energy projects ( Off grid projects) • Electrification of all Districts Headquarters; • Increased Generation Capacity from 1,200MW (2013 to 1,602MW; • Increased electricity access from 21% (2013) to 67.5% (2016); • Connection of 7,012 Villages out of 12,268 villages;

  11. 5. CHALLENGES • Financial resource constraints for infrastructure expansion (Natural Gas and Electricity); • Meeting the ever rising energy demand; • Attracting private sector investment in provision of modern energy services in the rural areas; • Expanding electricity accessibility and connectivity; • Making electricity affordable to Tanzanians; and • Long transmission distances and irregular population densities in rural areas translating to high cost in delivering the services to the rural population.

  12. 6. MEASURES • Increase efforts to mobilize funds for project funding • To promote and facilitate more innovation in rural electrification projects; • To continue facilitating project developers with technical and financial assistance; • To use Power System Master Plans and Electrification Prospectus as guidelines for the on-grid and off-grid electrification projects; • Creating an enabling environment to attract private sector participation in rural energy projects; • The initiatives to connect all social facilities in rural areas by either grid electricity or stand-alone systems; • Increasing public awareness of the modern energy access.

  13. 7. CONCLUSION Pipeline of projects (#MW)

  14. ASANTE SANA THANK YOU FOR YOUR ATTENTION

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