THE ROLE OF RURAL ELECTRIFICATION IN POVERTY REDUCTION

National Poverty Policy Week 2013Presented by:

Gissima Nyamo-Hanga

Rural Energy Agency

P.O. BOX 7990

Dar es SalaamEmail: [email protected] Website: www.rea.go.tz 25th November, 2013.

THE ROLE OF RURAL ELECTRIFICATION IN POVERTY REDUCTION

1. Introduction

2. Initiatives in the Energy Sector

3. Legal and Regulatory Frameworks

4. Access Rate: Energy

5. Power Generation

6. Power Transmission

7. Power Distribution

8. Rural Energya) Rural Electrification through Grid Extension b) Rural Electrification through Off-Grid Initiatives

9. The Future

10. Rural Electrification’s Contribution to Poverty Reduction 04/22/232

Contents

1. IntroductionRural Energy Agency:

• Government Institution, Autonomous: • Rural Energy Act No. 8 of 2005

• Rural Energy Board (REB);• Rural Energy Fund (REF);

• Oversee matters related to:• Rural Energy in Mainland Tanzania through:

• Promotion and Facilitation;• Training and Capacity Building;• Technical Assistance• Provision of Grants:

• Matching, Performance and Green Generation Grants;• Long Term Financing and a Credit Line arrangement.3

2. Initiatives in the Energy SectorInitiatives :

• Power System Master Plan (PSMP);• Big Results Now (BRN);• Power Africa;• Rural Energy Master Plan;• Scaling-up of Renewable Energy Programme (SREP);• Second Compact of the Millennium Challenge

Corporation;• Annual Joint Energy Sector Reviews (JESR);• National Energy Policy Review;• Formulation of the Natural Gas Policy;• Investment Prospectus (REA).

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• Some of guiding legal instruments:• National Energy Policy of 2003;• Energy and Water Utilities Regulatory Authority No. 11 of 2001 (Cap. 414);

• Environmental Management Act No. 20 of 2004 (Cap. 191);

• Rural Energy Act No. 8 of 2005;• Petroleum Act No. 4 of 2008;• Electricity Act No. 10 of 2008 (Cap. 131);

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3. Legal and Regulatory Frameworks

4. Access Rate: Energy• Access Rate:

• 2008: 10%• 2013: 21%• 2015: 30%• 2025: 75%

•Installed capacity: 1501.24 MW;

•Maximum Demand: 851 MW; •Customer base: 1,102,475• Per Capita Power Consumption: 100 kWh

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5. Power Generation• Generation:

• Hydro: 561.84MW (39%)• Thermal: 939.4MW (61%)

• Natural Gas (501MW); HFO/Diesel - 375.4MW

• Installed capacity: 1501.24 MW;

•Maximum Demand: 851 MW; Customer base: 1,102,475

• Access Rate:• 2008: 10%• 2013: 21%• 2015: 30%• 2025: 75%7

5.1. Grid Installed CapacitiesSTATION NO. OF UNITS INSTALLED CAPACITY MW

KIDATU 4 204.0KIHANSI 3 180.0MTERA 2 80.0

N/P FALLS 2 68.0

HALE 2 21.0

NYUMBA YA MUNGU 2 8.0

UWEMBA 3 0.8

TOTAL HYDRO   561.8IMPORT FROM SONGAS UGT1_UGT 6 189.0

UGP1 12 102.0

TGP 5 45.0

*SYMB UB GP 2 60.0UGP2 UGT1_UGT 3 105.0

TOTAL GAS PLANTS   501.0

IMPORT FROM IPTL 10 103.00

DIESELS (TANESCO) 3 7.40

AGR (UB) 63 50.00

AGR (TG) 63 50.00

**SYMB UB JET A 3 60.00

SYMB (ARU) 64 50.00

MWANZA 1 60

SYMB (DOM) 73 55.00

TOTAL OTHER FOSSIL (HFO/G.O/DIESEL)   435.40

SYSTEM TOTAL   1,501.24

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YEAR Project Addition

Type MW

2014 Singida Geo Wind Wind 50

2014 Kinyerezi I Gas 150

2015 Kinyerezi III & IV Gas 900

2015 Kilwa Energy Phase I Gas 210

2016 Kinyerezi II Gas 240

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5.2. Short Term Generation Plans

6. Power Transmission

• Current Transmission System:• Comprised of 4,869.96 km of:

• 220kV - 2,861.36km• 132kV – 1528 km• 66kV - 546 km

• Planned Transmission System:• Comprised of 4,869.96 km of:

• 132 kV – 366 km• 220kV – 993 km• 300kV – 1000 km (DC)• 400kV - 2249 km

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6.1. Transmission Expansion Plan

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7. Power Distribution

• Distribution System is Comprised of 53,655 km of power lines:• 33kV : 14,141km • 1kV : 6,392 km• 400/230kV : 34,157km• Connecting over 1,102,475 customers

• This component benefit from rural electrification interventions of the Rural Energy Agency (REA):• Rural Electrification Projects• Off-Grid Renewable Energy Projects

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8. Rural Energy• Mainland Tanzania: Mandated to REA;

• Governed by the Rural Energy Act No. 8 of 2005;

• Consists of:• Grid extension based rural electrification;• Off-Grid based energy services and solutions

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8.1. Grid Extension Based Rural Electrification

• Grid Extension (Pilot Phase): (completed)

• 39 Sub-projects: Major ones are:• District Headquarters: Kilolo, Bahi, Uyui, Kilindi and

Mkinga, Kasulu, Kibondo, Nkasi, Ngorongoro and Rorya;• Active Commercial Centers: Matema Beach, Mto wa Mbu,

Oswald Mang’ombe, Ngage A & B.

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8.1. Grid Extension Based Rural Electrification

• Grid Densification: (Underline Transformers)

• 81 Villages• 90,000 initial connections

•Turnkey Projects• Phase I: 16 Regions: 22,000 initial connections (completion

stage)• Phase II: 25 Regions: 250,000 initial connections (starting

stage) • 13 New District Headquarters• Buhigwe, Busega, Chemba, Itilima, Kakonko, Kalambo,

Kyerwa, Mkalama, Mlele, Momba, Namtumbo, Nyasa, and Uvinza

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8.1. Grid Extension Based Rural Electrification

• Low Cost Design Project: • Kilombero: 14 villages: 2,048 initial connections• Mbozi: 9 villages: 578 initial connections.

•Backbone Transmission Investment Project (BTIP)

• 647 km, 400 KV Line;• 51 Villages

• Makambako Songea Project • 320 km, 132 KV Line;• 81 Villages• Provide T-Offs Lines to Mbinga, Namtumbo and Ludewa.16

8.2. Off-Grid Based Energy Services and Solutions

• Small Hydropower based solutions:• 450 MW potential available;• 100 MW identified for studies;• 30 MW currently under study;• Mwenga (4 MW), Mawengi (300 KW) are operating;• Mapembasi (10 MW), Andoya (1 MW), Yovi (0.95 MW), Tulila (6.5 MW),

Kiwira II (6.5 MW) are prospective candidates.

• Solar PV:• Prospective Farms: 5 MW (Kigoma);• SSMP1, SSMP2, LRTC2010, LRTC2012;• Demo Systems in Schools and Health Facilities: REA Capacity Building and

Training Programmes.

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8.2. Off-Grid Based Energy Services and Solutions

• Biomass:• Gasification: Manyata Village Kongwa Dodoma• Biogas: In schools (Kibaha, Kwimba, Ngudu, Kahama and Kibondo); Prisons

(Namajani –Songea);• Charcoal and Wood fuel Briquettes: Training for Youth and Women Groups in

Kilosa, Mkuranga, Bagamoyo, Mtwara, and Lindi. Private Sector Based Capacity Building, Market Promotion: ARTI Tanzania, BEDOKO, Kiwia and Lausten, ENVOTEC, M&R Appro. Technologies.

• Wind Energy:• Training and Capacity Building to rural entrepreneurs;• Demo installations in Schools and Health Facilities (Wama Nakayama

Secondary School);• Site Assessments for large scale systems: Tendered

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9. The Future

• The future of the energy sector in Tanzania will be influenced by a number of factors; perhaps the major ones being:

• Shift in generation mix: Natural Gas and Renewables;• Increased private investment;• Growth in demand due industrial, agricultural,

population and urbanization growth;• More regulated power industry;• Regional integrations: East Africa, SADC, Nile Basin

Initiative, etc.;• New Governance models and structures.

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10. How is Rural Electrification Contributing to Poverty Reduction?

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Milling & Hulling, Welding & Carpentry, Electrifying Households, Water Pumping, Communication, Education & Skills Development, ….

10. How is Rural Electrification Contributing to Poverty Reduction?

• Social Services: (Outcome: Health, Informed and Skilled Workforce)

• Education (Secondary & Primary Schools, Colleges)• Health Facilities (Dispensaries & Health Centres)• Water Pumping, Electrified Households• Communication (Information, Internet Based Information,

Financial Transactions: M-&Tigo PESA, Airtel-Money)

• Productive Use: (Outcome: Improved Livelihoods)

• Welding & Carpentry Workshops;• Agro-processing (Milling & Hulling, Freezing & Drying, Packing);• Business: Restaurants, Hotels & Lodges, I-Cafes, Stationary, Printing,

etc.•Indirect Outcomes: Reduced rural urban migration, retention of extension workers

• Impact: Poverty Reduction and Overall Economic Growth21

THANK YOUFOR LISTENING

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