Introduction to SNV Tanzania

programs in Renewable Energy

June 2014

Market-Based Solutions for Scaling

Access to Energy in Tanzania

Who we are

• SNV is a Netherlands based non-profit, international development organisation, with >40 years of on the ground experience.

• Local presence: >2,000 professionals in 36 developing countries in Africa, Asia and Latin America.

• Capacity development services to local public and private organisations increasing access to basic services, income and employment.

Connection “leveraging critical mass”

Scalability “seeking a systems change”

Effectiveness “empowering local actors”

Market-Based Solutions to Eliminate Poverty

Where we are

4

What we do

Approaches interlinked with technology

Public Private Sector Partnership Multi-stakeholder approach

Capacity Building and Investment Advisory Services

Market Based Solutions / Value Chain Development / Inclusive Business

Governance and Accountability / Gender and Social Inclusion

Quality Assurance: Management for Results

Facilitation of sustainable

distribution chains for RE

products and services for

households and SMEs in

underserved areas:

Focus on:

cooking and lighting

needs for households;

focus on productive use

needs for SMEs.

SNV and RE market development projects in Tanzania

• Biogas Program:

Tanzania Domestic Biogas Programme: 2009-2017

Solid State Digester promotion: 2011-2013

PPP Bioslurry application in coffee sector: 2014-2017

Milk chilling innovation project: 2014-2015

• Improved Cooking Solutions (ICS):

Tanzania ICS program (EnDev): 2013-2015

ICS Taskforce: 2012-2014

• Pico-PV Solar:

Results Basing Financing (EnDev): 2013-2017

Integrated RE Services: 2014-2015

• Cross-cutting:

Opportunities for Youth Employment (OYE): 2013-2018

EnDev: Results Based Financing for Pico-Solar

Market Development in the Lake Zone

Goal • The 4 year RBF aims to establish a temporary financial

product within mainstream banking that is accessible to pico-solar import-suppliers actively engaged in distribution chain development.

• RBF incentives valued at €1 million is hosted by a Financial Institution and disseminated in 2 equal instalments as:

i. Product bonus to retailers

ii. Capital bonus to import-suppliers.

EnDev: Results Based Financing for Pico-Solar

Market Development in the Lake Zone

• Increasing number of reliable solar suppliers entering the market

• Expansion of the industry is dependent on the ability to consistently place large import orders

• Lack of reliable retail chain tapping the deeper portions of the rural off-grid consumer market

• Limited means to achieve economies of scale without incurring high costs and/or monopoly of the supply chain

Suppliers

• Unreliable sources for quality solar technology options capable of meeting diverse consumer energy needs and incomes

• Small working capital paired with poor pricing practices embed a high margin /low turnover culture

• Uniform, expensive and low quality solar products become the market norm

• Limited entry of new players in agri-business with linkages to deeper rural markets

Retailers

• 35% of all consumers indicate that they prefer solar based energy technologies. This number climbs to as high as 60% in rural communities.

• Avg. energy expenses TZS 40,000 monthly

•More than 45% of energy expense dedicated to kerosene, charging, batteries and candles – all of which can be easily satisfied with pico-solar.

•Only 3.5% of consumers indicate ownership of solar products!

Consumers

EnDev: RBF Pico-Solar

Suppliers Retailers Consumers

+ +

EnDev: RBF Pico-Solar

Targeted Results • 182,000 persons in 115,000 rural households will have access to

clean solar energy

• 22.8 million Litres of kerosene (with an est. value of €22.8 million) in household fuel savings resulting in the avoidance of 57,000 tCO2eq emissions

• 90 new and/or improved import-supply & retail energy enterprise employments

• €3.1 million in private sector investments (NPV) relative to €1.14 million in RBF program costs (NPV)

EnDev: RBF Pico-Solar

ASANTE SANA

Martijn Veen mveen@snvworld.org Josh Sebastian jsebastian@snvworld.org

THANK YOU

Sector Leader / Senior Advisor Renewable Energy, Arusha

Renewable Energy Advisor, EnDev Programme Manager, Mwanza

SNV Netherlands Development Organisation

Chole Road Plot 1124 P.O. Box 3941 Dar es Salaam, Tanzania

Tel +255-(0)22260340 www.snvworld.org