AFRICA ENERGY FORUM

Helsinki 21 September 2016

MINISTRY OF ENERGY AND MINERALS

GOVERNMENT OF TANZANIA RENAWABLE ENERGY AND PPP POLICY

Presented on

Presented by Salum Mnuna

Content

Presented by Salum Mnuna

General Country Profile Country Energy Facts Overview of the Country Energy Profile Country Energy Resources Potential Renewable Energy Current Situation Renewable Energy Development Supporting

Instruments Opportunity for Smart Grid in Tanzania Conclusion

General Country Profile

Presented by Salum Mnuna

Kilimanjaro

Serengeti

Ngoro Ngoro

Brief:- Population, appr, more than 45M, Area

947,303 square km, 75% Rural- GDP growth 6 – 7%- FDIs inflows 2,142 USD 2015 highest in EA- Home of all major African inland waters- Stable and peaceful nation

Zanzibar

Country Energy Facts

Presented by MEM

• Total installed capacity - 1,437.69 MW.• Maximum electricity demand - 1,061 MW• Average available electricity - 827.04 MW• Hydro Hydro: - 566.7 MW • Natural Gas: - 607.00 MW • Fuel Oil: - 253 MW)

• Other Renewable (solar, wind, biomass) - 2%• Access to electricity - 46%• Connectivity - 36%• Per Capita consumption - 136 kWh• Tanzania imports oil -1.8 million tonnes/annum

Overview of the Country energy profile

Presented by MEM

Tanzania energy potential resources include Hydro, Natural Gas, Coal, Uranium and renewable energies (Solar, Wind, Biomass and Geothermal);

Only Hydro and Natural Gas are to a great extent dominating power generation portfolio;

Despite enormous renewable energy potential, development of RE resources is still gradual;

Coal has been used for industrial purposes; exploration for power usages is underway;

Special environmental considerations and other concerns are thought prior to fully exploitation of uranium;

Overview of the energy cont..

Presented by Salum Mnuna

Estimated national energy consumption is 22 Million tonnes oil equivalent per annum

Biomass accounts for about 90% of the total consumption

Biomass fuels (i.e. wood and charcoal) account for over 85% of primary energy supply

Petroleum 11%

Electricity 3%

Solar and wind 1% of primary energy

Electricity3%Petroleum

11%Others

(including coal, solar,

etc)1%

Biomass85%

Energy Resources Potential

Presented by Salum Mnuna

SOURCE RESOURCE POTENTIAL ESTIMATED

STATUS OF DEVELOPMENT

Hydro 4.7 GW 12%Small hydropower 485 MW 2%Coal 1.9 billion Tonnes 304 Million Tonnes are

Proven.

Natural Gas 57.25 Tcf Discovered

Biomass More than 500MW 24.3 MIL. M3 per annum

Solar > 200Wp per square metre Average insolation 215W/M2 . Up to 3000 sunshine per year

Geothermal 5000MWBio fuels: Tanzania has crops for ethanol and bio-dieselWind Power Speed; more than 8m/sec Nuclear (from uranium), tidal and wave power.

Are under assessment

Renewable energy current situation

Presented by Salum Mnuna

Through Government Solar PV Market sensitization from 2009 – 2012, influx of Solar PV Home system witnessed, improved uptake of solar home systems technologies especially in rural areas;

Mini-grid development through private developers and others (Mini-hydro and Solar) close to 30 MW are realized;

Existing of wind resource data (more than 5 companies) under IP and PPP arrangements are exploring wind power investment possibilities in various places;

10 MW from Biomass generated (own use and Grid);

Renewable energy current situation cont..

Presented by Salum Mnuna

Renewable energy hybrid systems are being developed in addressing alternating risks of Renewable energy sources;

Mapping out all renewable energy potential resources in order to attract investment;

Development of special tariffs for RE technologies. Technology based tariffs for Biomass and Mini hydro and Competitive bidding for Solar and Wind;

New Energy Policy 2015 attaching greater attention to RE;

Existence of Tax incentives for RE equipment;

Supporting Legal and institution Instruments

Presented by Salum Mnuna

The EWURA Act, 2001;

The Public Private Partnership amendment Act, 2014;

The Petroleum Act, 2015;

The Electricity Act, 2008, allowing private participation;

The Rural Energy Act, 2005;

The National Energy Policy,2015

The national Investment Policy, 1996

The Five year Development Plan II, 2016 – Nurturing industrial economy

The Environmental Management Act, 2004.

 

PPP Institution and Legal Frame Work Highlights

Presented by Salum Mnuna

PPP act was enacted to address the financial and Technology gaps on

big infrastructure projects like energy, Railway, roads and

The Public Private Partnership amendment Act, 2014; ( Provides

guidance to the roles of both public and private on

(a)carrying out feasibility studies;

(b)mobilizing resources;

(c) risk sharing;

(d)monitoring and evaluation; and

(e)providing technical expertise and managerial skills.

PPP acts have it’s legislation in place, The PPP Regulation 2015

PPP centre which manages PPP nodes from other public institutions

sits at the Ministry of Finance and Planning

Solicited and unsolicited proposals

 

Opportunity for Smart Grid in Tanzania

Presented by Salum Mnuna

Known fact, Smart grid could enhance power service delivery in which consumers communicate to the power providers on the efficiency of the service (power) and providers in return provide proper services;

Remote areas in Tanzania which are not and will not be served by grid electricity, are the best areas for mini-grid operators to adopt a Smart grid technology;

Already some companies have a tracking mechanisms for system performance and customer feedback;

Small customer base under mini-grid (villages/centres) could be easily monitored unlike those under the national grid;

Current Solar Development Strategy

Presented by Salum Mnuna

Mapping out all potential solar sites in the country and establishment of the solar Atlas;

Setting up isolated grids solar panel and related accessories in areas which are off grids and no immediate grid extension plans future;

Continued with promotion of awareness campaigns on the importance of solar energy to rural development;

Encourage local production and Private sector Participation of solar based components.

Summary

Presented by Salum Mnuna

Tanzania vastness and its geographical set up, implies that mini-grid development through abundant renewable energy resources will be highly required;

Proper operations of the Mini-grid will be enhanced by SMART GRID technologies;

Smart Grid will also catalyze economic development through employment and marketing;

The Private Public Partnership initiatives in a demonstration of the country’s determination to develop the energy sectors through wider involvement of wider stakeholder;

Underdevelopment of SMART GRID technology in TZ provide an opportunity for Finnish companies to look into possibility of investment in such technologies

PPP legal and institution framework set a statement to the private sector to partner with the GoT to invest on Energy investment.

Conclusion

Presented by Salum Mnuna

Tanzania is determined to continue facilitating the development of renewable energy with the goal of ensuring increased in the utilization of the resources on account of the fact that the present power generation sources can no longer sustain our long term social economic developments

END

Presented by Salum Mnuna

THANK YOU

Q & A