Priority Energy Initiatives for Tanzania

1. Priority Energy Initiatives for Tanzania Developed by the Tanzanian Delegation at an EU Energy Initiative Workshop in Maputo 12-14 April 2005

2. Members of the Delegation • Ms. Justina Uisso – SRO –Energy Dev. MEM • Mr. Ngosi Mwihava – ACRE – MEM • Mr.Denis Mbekenga – Statistician – VPO-PR • Mr. Robert Mtengule – Economist – POPP • Mr. Estomih Sawe – ED – TaTEDO • Mr. David Biswalo – S.Agr. Econ -MAFS • FACILITATOR – Mr. Monga Mehlwana – CSIR – RSA

3. Context • Biomass meet 90% of the energy needs • Accounts for 40% of cooking needs (in peri urban • 96% in rural areas • Implications on long-term environmental degradation • Gender dimensions – as women spend more time collecting fuelwood • Only 2% of rural homes have access to electricity (& only 39% in urban areas) • Poor spend 35% of their income on energy • Various programs to improve rural energy situation has been tried with limited success • Proposed initiatives attempt to complement and add value to current initiatives (up-scaling, strengthening & provide support structures)

4. The country’s strategy and direction… • Promoting affordable and reliable energy supplies in the whole country • Reforming the market for energy services & establish adequate institutional framework – to facilitate investment, services expansion, efficient pricing mechanisms & other financial incentives • Enhancing development & utilisation of indigenous & RE sources & technologies • Taking account of environmental concerns in all energy activities • Promoting energy efficiency & conservation • Increasing energy education & building gender-balanced capacity in energy planning, implementation & monitoring

5. Programme 1: Provision of financial and technical support to the (soon-to-be established) Rural Energy Fund Objective: To facilitate for increased access to modern energy services for the rural areas or rural poor Components Provide financial mechanisms to rural energy service delivery companies as part of a strategy to make energy affordable (work with local financial institutions & NGOs) Provide technical & financial support to energy authorities incl. rural based credit institutions Provide finance, technical assistance & training to technological development of Programmes to promote rural energy Design support instruments (and capital) to assist commercial enterprises dealing with clean and RE technologies Duration and Indicative Budget Phase 1 = 5 years (Euro 20 million)

6. Programme 2: Establishment of a programme to strengthen institutions’ capacities to deliver better energy services Objective: To ensure that institutions are delivering better & sustainable energy services to the poor by 2010 Components of the Programme Introduction of energy programmes in schools and college curricula (this incl. extension training institutes Establish energy & development institutions (in order to improve insights on energy-poverty links, as well as energy R&D) Initiate an awareness raising and information dissemination programme on modern energy services as well as local participation in Programme development and implementation Build capacity on energy sector reform management, e.g. contract negotiations Duration and Indicative Budget PHASE 1 = 5 years (Euro 7 million)

7. Programme 3: Design and implement a service delivery model to facilitate large scale uptake and use of sustainable energy (clean fossil fuel and renewable energy technologies) in rural areas To increase the large scale uptake and use of sustainable energy including clean fossil fuels and RE technologies in rural areas Components Design and implement a model that will promote the use of renewable energies, such as biogas technology, RE power water schemes, energy crops & plants (Jatropha & oil seeds), biofuels, cogeneration, etc Design a model that will improve the efficient use of energy, e.g. improved stoves, improved charcoal techniques & management Develop & implement a model that facilitate a transition to modern fuels (LPG, compressed natural gas) as well as the dissemination of efficient cooking appliances Support and/or upscale existing biofuels Programmes Duration and Indicative Budget PHASE 1 = 5 years (Euros 15 million)

8. OTHER VIABLE PROGRAMMES THAT COULD BE FUNDED BY ALTERNATIVE MEANS (GOVERNMENT & OTHER FUNDING AGENCIES)

9. Programme 4: Rural energisation strategic plan through centralised and decentralised energy systems Description and Components Assist in the implementation of Programme & programmes in the REMP and PSMP (these incl. hydro, natural gas & cross border inter-connectors) Promote low cost rural electrification and non-grid (rural) electrification (e.g. solar PVs) Promote small scale energy systems for productive uses (for small-scale rural industries, crop processing initiatives, battery charging, etc) Exploration & assessment study of other indigenous energy sources (i.e. natural gas, geothermal, wind and oil) Energise rural institutions and facilities (health, schools, camps, etc)

10. Project 5: Development of tools for energy policy including implementation strategies, appropriate legal and regulatory framework, integrated planning, etc) Components Develop programme on energy sector governance and coordination of function of the central and local government structures Develop appropriate legislation on EE, RE & electricity (legal and institutional realignment) Development of incentives for private sector participation and investment in energy sector Develop appropriate institutional framework for better energy service delivery at all levels

11. THANKS