challenges to attain sustainable energy, 1-2014

8/10/2019 Challenges to Attain Sustainable Energy, 1-2014

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Energy Sector, Opportunities andChallenges to Attain Sustainable Energy

Kunduchi Beach Hotel & Resort, 22 23 January 2014

Mary Swai, TaTEDO1


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Outline

Key Message Current Situation

Energy for the Poor

Existing Sustainable Energy Systems Energy Sector Financing

Setbacks

The Energy future Required by CSOs

Conclusion

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Key Messages Energy Access in the Tanzanian Context entails the

following items:

Use of different sustainable energy resources(electricity, modern fuels and efficient technologies)

Use these resources to change lives of the majority inboth rural and urban areas in order to enable them touse modern services

Provision of clean energy through low carboninitiatives at local levels

Energy is not electricity only but both electricity andfuels (priority is required for both of them)

The Grid Electricity is expensive and mostly is

addressing energy access for the people in urbanareas.

If needs for the majority should be met, the priorityshould be on the decentralized RE systems toaddress energy access for more than 70% ofpopulation living in rural areas.

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Current Situation Tanzania is endowed with diverse energy resources

of different forms such as biomass, natural gas,

hydro, coal, geothermal, solar and wind, uranium,much of which are untapped

The residential sector (73%) is a major consumerwhile solid biofuels (88.4%) is the dominant energysource.

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Energy Consumption and Supply

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Current Situation..

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Large consumption of biomass in residentialsector is caused by affordability and location of a

large part of population (more than 70%) in therural areas.

Access to electricity currently stands at 18% andin rural areas is only about 7%.

There are on-going efforts undertaken by MEM tochange this situation:

- Revising Policies and Strategies (the energypolicy, liquid biofuel policy, gas policy, biomassenergy strategy, Petroleum Policy and will be

followed by geo-thermal strategy, renewableenergy policy and rural energy strategy).

- BRN to develop 29 large infrastructureprojects mainly for electricity and gas .


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Current Situation!.. Some of the on-going projects in the energy sector

are :

Power generation projects (!1010 MW)

Power Transmission projects

Scaling Up Renewable Energy Programme (Geothermal,Mini-grids and Off-grid electrification)

Total existing generation capacity is 1,431MW. Theoverall development from the last year has increasedonly 65MW out of 175MW expected.

Efforts of the government are currently directedtowards expanding electricity generation and revising

policies. The target is to attain access by 50% of the

population by year 2020

Development of fuels is left to the private sector andinformal sector

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Energy for the Poor

Energy for the poor in Tanzania are solid

biomass and human energy.

Solid biofuels are used by more than 90%of population.

Human energy to a large extent is used forrural transport, farming, processing, etc

Energy efficiency for energy use isstipulated in the policy but little has been

done to practise it (even in biomassenergy).

Women and children are the main users,

supp l i e rs and most a f fec ted by

inefficiency use of biomass energy

P i l f S i bl E


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Potential for Sustainable EnergySystems

Large and Medium Scale Energy Systems- Co-generation Systems (Sugar and sisal industries)-

Geothermal Energy Systems-

Large Hydro Power Systems- Thermal power systems

(Most of these systems supply electricity to urban andperi-urban areas feed electricity into national grids

serving only 1% of population)

Small Scale Renewable Energy Systems- Solar Energy Systems (PVs, Phone Chargers, PUCs

etc.)- Energy Service Platforms (biofuel powered systems)

-

Small Hydro Systems (Pico, Micro and Small Hydro)-

Biomass Energy Systems (improved cook-stoves,biogas, ovens, etc.)

(The decentralized RE systems are used for both urban

and rural areas. They are affordable, replicable andcan support the majority in urban and rural areas) !


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Sector Financing According to Joint Sector Review document,

the following are financing of the projects

Out of the finance above, only small amount offunds allocated by the Government and less than

2% allocated for biomass which is energy for poor.

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SetbacksThere are several setbacks for increasingaccess to energy services. These include

among others:

1.Policy and institutional! Lack of enough resources to implement national

energy policy and facilitate greater access to

modern energy services.! Inadequate local institutional framework for

facilitating energy access for the majority.! Low participation of the private sector and

communities in planning and implementation of

energy access initiatives.! Lack of capacity to produce energy equipment and

spare parts, hence high costs of foreign expertiseand equipment.

! Supporting systems for developing modern energy

services are centralised in Dar es Salaam. #$


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2. Financial

Inadequate financial resources allocated to

modern energy technology/rural energydevelopment.

Lack of financial mechanisms to enable peoplesaccess to credits to cover costs ofimplementation, connection, spare parts andservices.

Sustainable energy projects have a high capitalcosts (with capital intensive technologies)

High cash poverty levels of most people, SMEsand communities limits peoples ability to acquiremodern energy technologies and services.

##

Setbacks!!!.?


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Setbacks!!Technical

Energy illiteracy is a drawback for energytechnology adoption as there is no adequateknowledge to appreciate the benefits, costs,sustainability and risks of energy:

Inadequate capacity in the country and at the

local level to exploit existing energy resources

Limited technical, financial and deliverymechanisms.

Multiple risks in developing sustainable energyprojects in Tanzania, including off-taker risk,

currency risks, and resource uncertainty.

The focus of the country is on mega electricity andgas infrastructure projects and not energy for poor

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Setbacks!!!.

Energy Resources

Biomass resource extraction from the forest isvirtually unregulated, which leads tounsustainable harvesting of fuelwood and

charcoal.

Extraction enforcement is lacking in forests.

Forests are easily accessible and provide low-or no-cost fuelwood supplies

The informal nature and low incomes of the

biomass energy makes it difficult to access

capital for improving its production and reduceconsumption by using more efficient devices

Limited expertise in undertaking feasibility

studies, detailed design, and construction of

energy projects. 13


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The Energy Future We Want

Pr ior i ty should be on

development of sustainableenergy services for themajority rural and urbanpoor

Need to have more pro-poorsupportive energy policies,increased energy accessfinancing, tackling energy

access setbacks and greaterstakeholders participation inenergy interventions.

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The Energy Future!..

Stakeholders need to support a wide range

of sustainable energy initiatives that willmeet access to modern energy services forthe poor (with special emphasis on the

marginalized groups such as women,

children, disabled, youth, etc.

Need to ensure more than 80% of

Tanzanians who are using biomass energy

are using it efficiently and environmental

friendly manner .

Need to ensure that our actions are

contributing to low carbon development

initiatives. 15


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Thank

For more information, please

contact

TaTEDO, P. O. Box 32794, Dar es

Salaam, Tanzania

Tel +255 22 2700438/2700771,

Fax: +255 22 2774400

Email: [email protected],Website: www.tatedo.org 17

challenges to attain sustainable energy, 1-2014

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