2. PRESENTATION OUTLINE
1.Introduction
2.Rural Energy sector in Tanzania
3.The Potential of Small Hydropower in Tanzania
4.CEFA and Rural Electrification in Tanzania: 25
years of commitment
5.Looking for a bigger impact: the NPFPP model
6.What next: the concrete example of the Ninga
SHPP
7.Conclusions
3. Expanding renewable energy access for rural
communities in Africa is a challenging task
However,
Energy production and distribution in rural areas in Tanzania is
now a promising business opportunity
Because:
• Potential Local Market
• National Priority - Favorable legal framework and policy
• Int’ Donors and Commercial Banks Financing
1. Introduction
4. PROBLEM
Great need for mobilizing financial resources to expand
energy access for rural communities.
SOLUTION
A partnership between non-profit and for-profit actors is
here proposed in order to rapidly expand energy access.
Concrete possibility of a NPFPP between CEFA, an Italian
NGO specialized in rural electrification, and a private
partner for the realization of a Small Hydro Power project
in Ninga, Tanzania.
5. Tanzania power supply:
• national interconnected system
• several mini-grids located far from the national grid.
National electrification 18.4%, set to arise 75% by 2035.
Rural electrification less than 7% of the rural population (2.2
million).
Installed generation capacity is 1,564 MW of which 1,438.2
MW is available in the main grid and 125.8 MW accounted for
by Small Power Producers (SPPs), mini grids, and imports.
2. Rural Energy sector in Tanzania
6. The rural electrification sector is defined by law and
well regulated under the Ministry of Energy and
Minerals (MEM).
• REA (Rural Energy Agency),
• EWURA (Energy and Water Utilities Regulatory
Authority),
• TANESCO (Tanzania Electric Supply Company),
are the 3 key actors under MEM dealing with rural
electrification, renewable energy and market
development.
7. EWURA is regulating the private sector participation
through Standardized Power Purchase Agreement
(SPPA) for IPPs, SPPs (small power producers <10MW),
SMPPs (very small power producers < 100kW), DNO
(Distribution Network Operators), SPD (small power
distributor).
2011
Tariff
TZS/kWh
2012
Tariff
TZS/kWh
2013
Tariff
TZS/kWh
Standardized Small
Power Purchase Tariff 121.13 152.54
174.89 =
EUR 0.08
8. 3. The Potential of Small Hydropower in
Tanzania
Hydropower is the most popular and the oldest
renewable energy source used to produce electricity
for rural grids.
Potential of small hydropower resources up to 10 MW in
Tanzania is 480 MW.
Of the 11 projects for which Small Power Purchase
Agreements (SPPAs) have been signed, four are mini-
hydro projects, with a combined capacity of 20.5 MW
9. Examples:
• the MEM is conducting small-hydro feasibility
studies in eight regions;
• GVEP International, in partnership with REA, is
supporting the development of six hydro mini
grids;
• REA has awarded some 20 matching grants to
developers for feasibility studies;
• ESMAP is financing renewable-energy resource
mapping, starting with small hydropower;
• EU is financing four Hydro Power projects
(including one developed by CEFA).
10. 4. CEFA and Rural Electrification in
Tanzania: 25 years of commitment
CEFA (European Committee for Training and Agriculture)
is an Italian NGO that promotes initiatives of integrated
rural development.
Founded in 1972 by a group of agricultural cooperatives
based in Bologna, CEFA is present in the Mediterranean
area, East Africa and Central and South America.
In Tanzania since 1976, CEFA promotes interventions in
the fields of Rural Electrification, Water supply,
Sustainable Agriculture, Agro-processing .
13. Matembwe, Njombe
Summary details
Type of facility Reservoir micro hydro plant
Commissioning year 1984
Funded by Italian Ministry of Foreign Affairs; Belgian Ministry
of Foreign Affairs; European Union; CEFA
Ownership Matembwe Village Company – MVC Ltd (CEFA,
Catholic Dioceses of Njombe, District of Njombe
and Village of Matembwe)
Output power 120 kW
Villages served Matembwe and Image
Distribution network 19 km of MV
Households connected 556
Public institutions and economic
activities connected
64
Aqueducts powered 4
Connection with TANESCO Yes (in 2015).
15. Bomalang’ombe, Iringa
Summary details
Type of facility Reservoir mini hydro plant
Commissioning year 2001
Funded by Italian Ministry of Foreign Affairs; European Union;
CEFA
Ownership Bomalang’ombe Village Company – BVC Ltd (CEFA,
Catholic Dioceses of Iringa, District of Kilolo and
Village of Bomalang’ombe)
Output power 250 kW
Villages served Bomalang’ombe and Lyamko
Distribution network 17.3 km of MV
Households connected 252
Public institutions and economic
activities connected
76
Aqueducts powered 3
Connection with TANESCO No
17. Summary details
Type of facility Run-of-the-river micro hydro plant
Commissioning year 2004
Funded by Italian Ministry of Foreign Affairs; European Union;
CEFA
Ownership CEFA (to be handover to MVC Ltd)
Output power 83 kW
Villages served Ikondo
Distribution network 8 km of MV
Households connected 130
Public institutions and economic
activities connected
46
Aqueducts powered 1
Connection with TANESCO Yes (in 2015)
Ikondo, Njombe
19. Ikondo II
Summary details
Type of facility Run-of-the-river micro hydro plant
Commissioning year 2015
Funded by European Union; CEFA
Ownership CEFA (to be handover to MVC Ltd)
Output power 430 kw
Villages served Ikondo, Nyave, Ukalawa, Isoliwaya, Kanikele
Distribution network 47 km of MV (in 2015)
Households connected 280 (in 2015)
Public institutions and economic
activities connected
75 (in 2015)
Aqueducts powered 1
Connection with TANESCO Yes (in 2015)
21. 6. What next: the concrete
example of the Ninga SHPP
22. Summary details (Foreseen)
Type of facility Run-of-the-river small hydro plant
Commissioning year 2017
Proposed financial model Developer equity, International donors, REA, etc
and Commercial loans
Ownership To be handover to local entity
Output power 4,000 kW
Villages served Ninga, Lima, Isitu, Ikuna, Lole, Upami and
Ilengitu
Distribution network 18 km of MV
Households connected 1680
Public institutions and economic
activities connected
268
Connection with TANESCO Yes
25. 7. Conclusions
It’s now time to expand renewable energy access for
rural communities in Tanzania.
New CEFA’s project will provide energy to 2,000 HH and
small enterprises.
Thanks to a NPFPP is possible:
- Rapidly expand financial resources
- Expand energy access
- Increase empowerment of local communities
- Meet national target for electrification and energy
production
26. Thank you for your Attention!
Jacopo Pendezza
CEFA Tanzania
P.O. Box 59, Njombe - Tanzania
TZ +255 689599034 +255 71863847
IT +39 3281737292
jpendezza@gmail.com
www.cefaonlus.it/uk