POLICIES SUPPORTING DEVELOPMENT OF RETs IN

TANZANIA

Ministry of Energy and Minerals

6th June, 2012

Contents• Introduction• Importance of Electricity• Why RETs• Role of the Government• National Energy Policy• Supportive Policy (2003) Statement on

RETs• Energy Policy Implementation: • Conclusion

1. INTRODUCTION

Why is Energy so important?• A major input/factor in micro & macro-

economic development• Addressing basic human needs - food,

shelter, social and economic services• Its impact on Environment - air/water

pollution, land degradation

2. IMPORTANCE OF ELECTRICITY

• Successful achievement of the Government’s broader economic policy and continued efforts to alleviate poverty

• Stimulation of both community and economic development - Include productive/income generating activities, and community facilities such as schools, hospitals, health centers, dispensaries, communication, etc.

3. Why RETs• Sustainable Energy source and supply• Environmentally friendly, hence Environment

protection.• Very good option for off-grid solutions• Income generating activities – hence poverty

reduction• Ideal for stand alone systems especially Solar

PV and Micro Wind Turbine for remote and dispersed areas where the national grid is not anticipated in the next 5-10 years

• Low operation and maintenance cost• Not site specific

4. ROLE OF THE GOVERNMENT

• To stimulate private sector participation and/or investment initiatives

• To facilitate Development by rationalizing provision of resources and services (using supportive policies- technical, economic and legal/regulatory)

• Formulating and Supervising implementation of the National Energy Policy

5. NATIONAL ENERGY POLICY• OBJECTIVE:

Availability of reliable and affordable energy supplies and their use in a rational and sustainable manner so as to support national development goals• PROCESS:

– 1992: Launching of the 1st National Energy Policy

– 2003: Launching of the revised NEP-As a result of structural changes in the overall economy and political transformations

– 2012: Review of 2003 NEP is under preparation

– 2012: Biofuel policy is on the way to be launched

6. SUPPORTIVE POLICY (2003) STATEMENT ON RETs

• Policy statement in NEP 2003 on RETs include:

“Promote efficient biomass conversion and end-use technologies, in order to save resources; reduce rate of deforestation and land degradation; and minimizing threats on climate change”.

• NEP also emphasizes on conservation of biomass particularly woodfuel through efficient conversion and end-use technologies- complemented by tree growing at household level and beyond.

7. SUPPORTIVE POLICY (2003) STATEMENT ON RETs (ctd)

• “Introduce and support appropriate fiscal and financial incentives for renewable energy.Through REA & REF.

• “Establish norms, codes of practice, guidelines and standards for renewable energy technologies, to facilitate the creation of an enabling environment for sustainable development of renewable energy sources” Eg. Biofuels guidelines and Solar PV Standards.

• Ensure inclusion of environmental considerations in all renewable energy planning and implementation, and enhance co-operation with other relevant stakeholders. CDM for renewable energy projects connected to the National Grid.

8. SUPPORTIVE POLICY (2003) STATEMENT ON RETs (ctd)

• “Support research and development in renewable energy technologies”. Eg. Research on coal-biomass briquettes to ascertain gases produced after combustion, geothermal, wind and small hydro resources assessment.

• “Promote entrepreneurship and private initiative in the production and marketing of products and services for rural and renewable energy”. Eg. Micro wind turbine & biogas plants manufacture, Solar PV suppliers & dealers, and others.

9. ENERGY POLICY IMPLEMENTATION: EFFORTS BY THE GOVT

• Supportive National Energy Policy statements, as well as formulation of a separate Rural energy Policy (draft version available)

• Mobilization of funds for RETs Projects e.g1: Solar PV Market Barriers Removal (Mwanza & Sida/MEM Solar PV projects and TEDAP e.g2: Tanzania Domestic Biogas Programme e.g3: Biomass Energy Strategy (BEST)

• Removal of VAT and Import Duty on Solar PV system gadgets and micro wind turbine below 30kW capacity.

10. ENERGY POLICY IMPLEMENTATION: EFFORTS BY THE GOVT (ctd)

• Establishment of Rural Energy Agency (REA) and Rural Energy Fund (REF)

• Adoption of Standards and Codes of Practice for the Solar PV systems.

• Conducive environment for Independent Power Producers (IPPs)

• Establishment of annual Standardized Small Power Purchase Tariff – Coordinated by EWURA.

11. CONCLUSION• The Government through the Ministry of Energy

and Minerals is in full support of RETs technology promotion and dissemination, as a possible option for off-grid power solution- so as to improve electricity/energy access to both peri-urban and rural areas.

• In order for RETs to have a meaningful contribution to modern energy supply, innovative solutions from all stakeholders to address affordability, reliability and acceptability are required.

THANKS