TANZANIA ELECTRIC SUPPLY COMPANY LTD …unohrlls.org/custom-content/uploads/2016/12/2.TANESCO-SE...TANZANIA ELECTRIC SUPPLY COMPANY LTD (TANESCO) FINANCING INITIATIVES AND BUSINESS

TANZANIA ELECTRIC SUPPLY

COMPANY LTD (TANESCO)

FINANCING INITIATIVES AND

BUSINESS PLANS THAT WORK Focusing on Grid Solutions

Presented by: ENG. DECKLAN MHAIKI DEPUTY MANAGING

DIRECTOR INVESTMENT (TANESCO-DMDI)

CONTENTS

Tanzania at a Glance

Electricity Sector & Resources

Sustainable Energy Agenda

Generation & Network Expansion Programs

Renewable Energy Development

Financing Initiatives

Conclusion

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TANZANIA AT A GLANCE

Main Figures Area 947,300sqm

Population 49.25million (2013)

GDP 48.6bn USD (2015)

GDP per capita 842 USD (2015)

Consumption per capita 100kWh

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ELECTRICITY SECTOR (Key stakeholders)

4

Board of Directors

Generation

Transmission

Distribution

Ministry of Energy & Minerals

Customers

EWURA TPDC

REA

IPPs Imports

LEGAL FRAMEWORK GOVERNING THE SECTOR

Electricity & Gas:

• National Energy Policy 2015

• Electricity Act, 2008

• Natural Gas Policy, 2013

• Natural Gas Act (under preparation)

• National Gas Utilization Master Plan (under prep).

• EWURA Act of 2001,

• REA Act of 2005 and

Cross-cutting Legislations

• Occupational Safety and Health Act, 2003

• Environmental Management Act, 2004

• Income Tax Act, 2004

• Public-Private-Partnership Act, 2010

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ENERGY RESOURCES

HYDRO – 4.7GW (12% Developed)

COAL – 1.9 Bn tons (0% developed)

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Mkuranga 2007 (0.2 TCF) Kiliwani 2008 (0.07 TCF) Songo Songo 1974 (2.5 TCF)

Mnazi Bay 1982 (5 TCF)

Ntorya 2012 ( 0.178 TCF)

NATURAL GAS DISCOVERIES

TOTAL GIIP: 57.25 TCF (Developed - 607MW)

Deep Sea : 47.08 TCF

Total GIIP Onshore = 10.17 TCF

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GEOTHERMAL POTENTIAL

58 sites – 5,000MW (none developed)

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SOLAR POTENTIAL – DEVELOPED SOLAR MAP

Tanzania is among the countries with high solar radiation.

Daily solar insolation – 4.21 – 6.13 kWh/m2/day

Annual insolation – 1,538 – 2,242 kWh/m2/yr

Central zone and part of southern and Lake Zone are dominating.

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40°0'0"E

40°0'0"E

38°0'0"E

38°0'0"E

36°0'0"E

36°0'0"E

34°0'0"E

34°0'0"E

32°0'0"E

32°0'0"E

30°0'0"E

30°0'0"E

2°0'0"N

0°0'0"

2°0'0"S

4°0'0"S

6°0'0"S

8°0'0"S

10°0'0"S

12°0'0"S

14°0'0"S

0 80 160 240 32040

Kilometers

±

Coordinate System: GCS WGS 1984Datum: WGS 1984Units: Degree

Legend

Solar radiation

(kWh/m2/day)

High : 6.13

Low : 4.22

ELECTRICITY SECTOR

Main figures by October, 2016 Generation grid installed capacity 1,357.69MW - Hydro 41.7%

- Natural gas 44.7%

- Oil 12.8%

- Biomas 0.8%

Installed Capacity by Ownership

Tanesco own 1,049.40MW – 77.3%

IPPs own 308.29MW – 22.7%

Transmission Lines 6,167.0km

Distribution Lines 33 & 11kV 32,324.0km

Distribution Lines 0.4/0.23kV 101,900.0km

System Frequency 50Hz, ±2.5%

Maximum Demand 1,041.63

Access to electricity 40% (March 2016)

Number of customers 1,973,754 12/12/2016

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SUSTAINABLE ENERGY AGENDA

In Line With SDG 7 Tanzania has Developed the National Development Vision 2025 with the Following Main Objective:

Transform the Country Into a Middle Income by 2050.

Increase Generation Capacity to 10000MW by 2025

Increase Access to 75% by 2025

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SUSTAINABLE ENERGY AGENDA -

NATIONAL DEVELOPMENT VISION

National Development Vision 2025 has the Following Main Objective:

Transform the Country Into a Middle Income by 2025.

Increase Generation Capacity to 10000MW by 2025

Increase Access to 75% by 2025

Strengthening the national grid in terms of generation and transmission capacity is the main agenda

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GENERATION CAPACITY EXPANSION PROGRAMME

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The short and Medium Term plan is to increase generation capacity to

5,000MW and a huge potential of natural gas which is available locally as a

source of power generation will enable to achieve this target by 2020 including:

• Kinyerezi I Extension 185MW under construction - expected to be online by

2018.

• Kinyerezi II 240MW natural gas fired power plant with financing from Japan

and GOT under construction - expected to be online by 2018.

• 300MW natural gas fired plant proposed to be financed by JICA and GOT

and it is at the appraisal stage. Planned to be ready by 2020.

• Ongoing negotiation with various developers: 300MW (coal), 100MW

(wind), Solar PV (55MW), 850 MW (natural gas) and 70MW (Hydro) – All

these plant to be online by 2020.

GENERATION CAPACITY EXPANSION PROGRAMME……

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Long-term View:

• Competitive procurement of generation projects for all

technologies i.e. natural gas, coal, wind, hydro and

Solar.

NETWORK EXPANSION PROGRAMME

Network Expansion Involves:

Grid Extensions

Distribution Expansion and Rural Electrification

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GRID EXTENSION: Backbone / ZTK Transmission Line

Under Construction

Tanzania is the hub of EAPP and

SAPP and important for power interconnection.

The new 400kV Backbone line will connect the South and south west of Tanzania to the load centers in the North.

Iringa - Shinyanga to be ready by end of 2016 and Singida – Arusha – Namanga Kenya will be ready by end of 2018.

The ZTK interconnector will link the Southern and Eastern Power Pools and enable will power trading.

Backbone will be a part of the planned ZTK line

GRID EXTENSION……. Cont. North – West 400kV T/L (1,148km) from Mbeya – Sumbawanga – Mpanda –

Kigoma – Nyakanazi is under review of feasibility study from 220kV to 400kV.

220kV Bulyanhulu – Geita – Nyakanazi (188km) is under construction and expected to be completed in 2018.

North – East 400kV T/L (664km) from Dar – Chalinze – Segera – Arusha. Financing has been finalized and planned to commence construction early 2017 and completed in 2019.

220kV T/L Makambako – Songea (250km) is under construction and expected to be completed in 2018.

400kV T/L Somanga – Kinyerezi (198km). Compensation to the PAPs Contract negotiation with the Consultant for supervision of the project is ongoing.

400kV T/L Chalinze – Dodoma (350km). Feasibility study is at the final stage of completion.

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FUTURE GRID MAP BY 2033

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CUSTOMER BASE AND CONNECTION RATE

Efforts towards universal access to modern energy involves connecting more customers through National Grid and Mini-grids.

The current customer base is about 1.9 million.

Annual connection rate stands at 250,000 customers.

Access/ Connectivity; All regional headquarters in Tanzania and (99%) of district headquarters have electricity. Currently the connectivity level stands at 33% and access level at 40%. Our target is to increase electricity connectivity level to 75% by 2025.

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STATUS OF ACCESS PER REGION

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0%

20%

40%

60%

80%

100%

120%

Arusha

Daressalaam

Dodoma

Geita

Iringa

Kagera

Katavi

Kigoma

Kilimanjaro

Lindi

Manyara

Mara

Mbeya

Morogoro

Mtwara

Mwanza

Njombe

Pwani

Rukwa

Ruvuma

Shinyanga

Simiyu

Singida

Tabora

Tanga

AccessRatesperRegion(March2016)–AVR:40%

%ofNon-ElectrifiedVillages

RURAL ELECTRIFICATION PROGRAMME

The Government of Tanzania through REA has set a target of providing electricity services to all villages in Tanzania by year 2021 through grid extension and off-grid renewable energy solutions.

Several initiatives have been developed and some of them are in various stages of implementation (i.e. Grid extension projects, Renewable energy projects, grid connected mini grids, off grid

projects, etc.)

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EXTENT OF RURAL ELECTRIFICATION

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Renewable Energy Development

The Government has established a Subsidiary Company for development of Geothermal named Tanzania Geothermal Development Company.

The Stability Study for integrating renewable energy sources mainly wind farm and Solar PV plant into the national Grid have been conducted.

The study provided Limit of the overall RE capacity to about:

- 385MW capacity at 1,250MW peak demand

- 710 MW capacity at 2,500MW peak demand.

Peak demand reached so far is 1026.48MW.

Financing Initiatives

Financing initiatives in Tanzanian Power Sector include:

Rural electrification financing (REA):

Government Project Financing through TANESCO:

Generation projects: E.g. Kinyerezi I, IE, & II

Transmission projects: E.g. Feasibility study for Chalinze - Dodoma transmission line

Distribution projects: E.g. Construction of Dar es Salaam Distribution Control Centre

Development partners.

Project financing through Concessional and Commercial loans.

CONCLUSION

The Demand for Energy will continue to increase over the coming years.

With its vast and untapped energy resources Tanzania is an ideal place for clean and renewable energy solutions to ensure sustainability of the electricity sector.

However, more Financing initiatives are needed to ensure successful implementation of various business plans and programmes.

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THANK YOU

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