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THE ROLE OF RURAL ELECTRIFICATION IN POVERTY REDUCTION

THE ROLE OF RURAL ELECTRIFICATION IN POVERTY REDUCTION. National Poverty Policy Week 2013 Presented by: Gissima Nyamo-Hanga Rural Energy Agency P.O. BOX 7990 Dar es Salaam Email: info@rea.go.tz Website: www.rea.go.tz 25 th November, 2013. Contents. Introduction

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THE ROLE OF RURAL ELECTRIFICATION IN POVERTY REDUCTION

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  1. THE ROLE OF RURAL ELECTRIFICATION IN POVERTY REDUCTION National Poverty Policy Week 2013 Presented by: Gissima Nyamo-Hanga Rural Energy Agency P.O. BOX 7990 Dar es Salaam Email: info@rea.go.tz Website: www.rea.go.tz 25th November, 2013.

  2. Contents • Introduction • Initiatives in the Energy Sector • Legal and Regulatory Frameworks • Access Rate: Energy • Power Generation • Power Transmission • Power Distribution • Rural Energy • Rural Electrification through Grid Extension • Rural Electrification through Off-Grid Initiatives • The Future • Rural Electrification’s Contribution to Poverty Reduction

  3. 1. Introduction Rural Energy Agency: Government Institution, Autonomous: Rural Energy Act No. 8 of 2005 Rural Energy Board (REB); Rural Energy Fund (REF); Oversee matters related to: Rural Energy in Mainland Tanzania through: Promotion and Facilitation; Training and Capacity Building; Technical Assistance Provision of Grants: Matching, Performance and Green Generation Grants; Long Term Financing and a Credit Line arrangement.

  4. 2. Initiatives in the Energy Sector Initiatives : Power System Master Plan (PSMP); Big Results Now (BRN); Power Africa; Rural Energy Master Plan; Scaling-up of Renewable Energy Programme (SREP); Second Compact of the Millennium Challenge Corporation; Annual Joint Energy Sector Reviews (JESR); National Energy Policy Review; Formulation of the Natural Gas Policy; Investment Prospectus (REA).

  5. 3. Legal and Regulatory Frameworks Some of guiding legal instruments: National Energy Policy of 2003; Energy and Water Utilities Regulatory Authority No. 11 of 2001 (Cap. 414); Environmental Management Act No. 20 of 2004 (Cap. 191); Rural Energy Act No. 8 of 2005; Petroleum Act No. 4 of 2008; Electricity Act No. 10 of 2008 (Cap. 131);

  6. 4. Access Rate: Energy Access Rate: 2008: 10% 2013: 21% 2015: 30% 2025: 75% Installed capacity: 1501.24 MW; Maximum Demand: 851 MW; Customer base: 1,102,475 Per Capita Power Consumption: 100 kWh

  7. 5. Power Generation Generation: Hydro: 561.84MW (39%) Thermal: 939.4MW (61%) Natural Gas (501MW); HFO/Diesel - 375.4MW Installed capacity: 1501.24 MW; Maximum Demand: 851 MW; Customer base: 1,102,475 Access Rate: 2008: 10% 2013: 21% 2015: 30% 2025: 75%

  8. 5.1. Grid Installed Capacities

  9. 5.2. Short Term Generation Plans

  10. 6. Power Transmission Current Transmission System: Comprised of 4,869.96 km of: 220kV - 2,861.36km 132kV – 1528 km 66kV - 546 km Planned Transmission System: Comprised of 4,869.96 km of: 132 kV – 366 km 220kV – 993 km 300kV – 1000 km (DC) 400kV - 2249 km

  11. 6.1. Transmission Expansion Plan

  12. 7. Power Distribution Distribution System is Comprised of 53,655 km of power lines: 33kV : 14,141km 1kV : 6,392 km 400/230kV : 34,157km Connecting over 1,102,475 customers This component benefit from rural electrification interventions of the Rural Energy Agency (REA): Rural Electrification Projects Off-Grid Renewable Energy Projects

  13. 8. Rural Energy Mainland Tanzania: Mandated to REA; Governed by the Rural Energy Act No. 8 of 2005; Consists of: Grid extension based rural electrification; Off-Grid based energy services and solutions

  14. 8.1. Grid Extension Based Rural Electrification Grid Extension (Pilot Phase): (completed) 39 Sub-projects: Major ones are: District Headquarters: Kilolo, Bahi, Uyui, Kilindi and Mkinga, Kasulu, Kibondo, Nkasi, Ngorongoro and Rorya; Active Commercial Centers: Matema Beach, Mto wa Mbu, Oswald Mang’ombe, Ngage A & B.

  15. 8.1. Grid Extension Based Rural Electrification Grid Densification: (Underline Transformers) 81 Villages 90,000 initial connections Turnkey Projects Phase I: 16 Regions: 22,000 initial connections (completion stage) Phase II: 25 Regions: 250,000 initial connections (starting stage) 13 New District Headquarters Buhigwe, Busega, Chemba, Itilima, Kakonko, Kalambo, Kyerwa, Mkalama, Mlele, Momba, Namtumbo, Nyasa, and Uvinza

  16. 8.1. Grid Extension Based Rural Electrification Low Cost Design Project: Kilombero: 14 villages: 2,048 initial connections Mbozi: 9 villages: 578 initial connections. Backbone Transmission Investment Project (BTIP) 647 km, 400 KV Line; 51 Villages Makambako Songea Project 320 km, 132 KV Line; 81 Villages Provide T-Offs Lines to Mbinga, Namtumbo and Ludewa.

  17. 8.2. Off-Grid Based Energy Services and Solutions Small Hydropower based solutions: 450 MW potential available; 100 MW identified for studies; 30 MW currently under study; Mwenga (4 MW), Mawengi (300 KW) are operating; Mapembasi (10 MW), Andoya (1 MW), Yovi (0.95 MW), Tulila (6.5 MW), Kiwira II (6.5 MW) are prospective candidates. Solar PV: Prospective Farms: 5 MW (Kigoma); SSMP1, SSMP2, LRTC2010, LRTC2012; Demo Systems in Schools and Health Facilities: REA Capacity Building and Training Programmes.

  18. 8.2. Off-Grid Based Energy Services and Solutions Biomass: Gasification: Manyata Village Kongwa Dodoma Biogas: In schools (Kibaha, Kwimba, Ngudu, Kahama and Kibondo); Prisons (Namajani –Songea); Charcoal and Wood fuel Briquettes: Training for Youth and Women Groups in Kilosa, Mkuranga, Bagamoyo, Mtwara, and Lindi. Private Sector Based Capacity Building, Market Promotion: ARTI Tanzania, BEDOKO, Kiwia and Lausten, ENVOTEC, M&R Appro. Technologies. Wind Energy: Training and Capacity Building to rural entrepreneurs; Demo installations in Schools and Health Facilities (Wama Nakayama Secondary School); Site Assessments for large scale systems: Tendered

  19. 9. The Future The future of the energy sector in Tanzania will be influenced by a number of factors; perhaps the major ones being: Shift in generation mix: Natural Gas and Renewables; Increased private investment; Growth in demand due industrial, agricultural, population and urbanization growth; More regulated power industry; Regional integrations: East Africa, SADC, Nile Basin Initiative, etc.; New Governance models and structures.

  20. 10. How is Rural Electrification Contributing to Poverty Reduction? Milling & Hulling, Welding & Carpentry, Electrifying Households, Water Pumping, Communication, Education & Skills Development, ….

  21. 10. How is Rural Electrification Contributing to Poverty Reduction? Social Services: (Outcome: Health, Informed and Skilled Workforce) Education (Secondary & Primary Schools, Colleges) Health Facilities (Dispensaries & Health Centres) Water Pumping, Electrified Households Communication (Information, Internet Based Information, Financial Transactions: M-&Tigo PESA, Airtel-Money) Productive Use: (Outcome: Improved Livelihoods) Welding & Carpentry Workshops; Agro-processing (Milling & Hulling, Freezing & Drying, Packing); Business: Restaurants, Hotels & Lodges, I-Cafes, Stationary, Printing, etc. Indirect Outcomes: Reduced rural urban migration, retention of extension workers Impact: Poverty Reduction and Overall Economic Growth

  22. THANK YOU FOR LISTENING

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