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Priority Energy Initiatives for Tanzania

Developed by the Tanzanian Delegation at an EU Energy Initiative Workshop in

Maputo12-14 April 2005

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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

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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)

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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

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Programme 1: Provision of financial and technical support to the (soon-to-be established) Rural Energy Fund

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)

Objective: To facilitate for increased access to modern energy services for the rural areas or rural poor

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Programme 2: Establishment of a programme to strengthen institutions’ capacities to deliver better energy services

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)

Objective: To ensure that institutions are delivering better & sustainable energy services to the poor by 2010

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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

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)

To increase the large scale uptake and use of sustainable energy including clean fossil fuels and RE technologies in rural areas

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OTHER VIABLE PROGRAMMES THAT COULD BE FUNDED BY

ALTERNATIVE MEANS (GOVERNMENT & OTHER FUNDING AGENCIES)

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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)

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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

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THANKS