1 BACKGROUND PAPER DEVELOPMENT AND ENERGY IN AFRICA (DEA) Project – First National Workshop 12th September, 2005 E. N. Sawe - TaTEDO

2 PRESENTATION STRUCTURE 1.0 Introduction 1.1 Purpose 1.2 DEA Project 1.3 Profile of TaTEDO 2.0 Tanzania Energy status 3.0Energy Policy and implementation 4.0 Impacts of energy programme 5.0 Conclusions and recommendations

3 1.0 INTRODUCTION 1.1Purpose of the Paper is to:  Provide brief information of DEA Project  Present profile of TaTEDO as DEA Project Partner  Summarized Tanzania energy Status  Highlight energy policy and implementation status  Show some impacts of energy initiatives on improving energy access.

4 1.2 The DEA Project Background Project under the EC COOPENER PROGRAMME. Duration – 2 1 / 2 years since May 1 st Implementation and Coordination by — RISØ National Laboratory - Denmark — Energy Center of the Netherlands (ECN) Supported by: Six African NGO Centres.

5 Aim of The Project To identify and examine the developmental impacts of energy initiatives. To use information obtained to improve on going and future energy interventions. To Develop and apply an assessment framework for evaluating development and poverty reduction impacts of energy interventions. To engage in a dialogue with energy policy makers and other stakeholders on the basis of the framework, with view of incorporating these issues in energy policy. DEA project ctd.

6 Proposed Energy Assessment Within The Energy and Sustainable Development Linkages Non-Energy Actors VPO MHE MCT (ICT) MF MNT MW MIaT Energy Actors Public MEM, Private Civil Societies, NGOs CBOs. Environment Conservation - Natural Capital - Forest - Climate change - Air pollution (indoor & out door - Land degradation Social Development - Human Capital - Education - Health - Water - Communication - Social Capital Economy growth Financial Capital Physical Capital - (Industries and agriculture) - Production - Income DEA Project Analysis from 1 Literature review 2 Catalogue 3 Consultations 4 Workshops and AF 5 Case studies Energy Interventions (Rural & peri Urban) - Policy, Laws, regulations, pricising - Strategy - Programmes - Project s– Innovation technologies approaches Impact on Sustainable Development  Livelihood assets strategies improvement  Poverty Reduction  NSGRP  MDGs Qualitative and Quantitative assessment that leads to assessing chain of effects. (AF – Tool) Impact +ve or (- ve) on development Source : Sawe 2005 DEA Project ctd… Operational Tool – Assessment Framework Energy Planning based on people’s Needs, opportunities and on development priorities - (Participatory?) Energy Actors Public MEM, Private Civil Societies, NGOs CBOs. DEA Project Analysis from 1 Literature review 2 Catalogue 3 Consultations 4 Workshops and AF 5 Case studies Energy Interventions (Rural & peri Urban) - Policy, Laws, regulations, pricising - Strategy - Programmes - Project s– Innovation technologies approaches Energy Actors Public MEM, Private Civil Societies, NGOs CBOs. DEA Project Analysis from 1 Literature review 2 Catalogue 3 Consultations 4 Workshops and AF 5 Case studies Social Development - Human Capital - Education - Health - Water - Communication - Social Capital Energy Interventions (Rural & peri Urban) - Policy, Laws, regulations, pricising - Strategy - Programmes - Project s– Innovation technologies approaches Energy Actors Public MEM, Private Civil Societies, NGOs CBOs. DEA Project Analysis from 1 Literature review 2 Catalogue 3 Consultations 4 Workshops and AF 5 Case studies Environment Conservation - Natural Capital - Forest - Climate change - Air pollution (indoor & out door - Land degradation Economy growth Financial Capital Physical Capital - (Industries and agriculture) - Production - Income Social Development - Human Capital - Education - Health - Water - Communication - Social Capital Environment Conservation - Natural Capital - Forest - Climate change - Air pollution (indoor & out door - Land degradation Economy growth Financial Capital Physical Capital - (Industries and agriculture) - Production - Income Social Development - Human Capital - Education - Health - Water - Communication - Social Capital Energy Interventions (Rural & peri Urban) - Policy, Laws, regulations, pricising - Strategy - Programmes - Project s– Innovation technologies approaches Environment Conservation - Natural Capital - Forest - Climate change - Air pollution (indoor & out door - Land degradation Economy growth Financial Capital Physical Capital - (Industries and agriculture) - Production - Income Social Development - Human Capital - Education - Health - Water - Communication - Social Capital Energy Planning based on people’s Needs, opportunities and on development priorities - (Participatory?) Energy Interventions (Rural & peri Urban) - Policy, Laws, regulations, pricising - Strategy - Programmes - Project s– Innovation technologies approaches Energy Planning based on people’s Needs, opportunities and on development priorities - (Participatory?) Energy Interventions (Rural & peri Urban) - Policy, Laws, regulations, pricising - Strategy - Programmes - Project s– Innovation technologies approaches Energy Actors Public MEM, Private Civil Societies, NGOs CBOs. Energy Planning based on people’s Needs, opportunities and on development priorities - (Participatory?) Energy Interventions (Rural & peri Urban) - Policy, Laws, regulations, pricising - Strategy - Programmes - Project s– Innovation technologies approaches Energy Actors Public MEM, Private Civil Societies, NGOs CBOs. Energy Planning based on people’s Needs, opportunities and on development priorities - (Participatory?) Energy Interventions (Rural & peri Urban) - Policy, Laws, regulations, pricising - Strategy - Programmes - Project s– Innovation technologies approaches Economy growth Financial Capital Physical Capital - (Industries and agriculture) - Production - Income Energy Actors Public MEM, Private Civil Societies, NGOs CBOs. Energy Planning based on people’s Needs, opportunities and on development priorities - (Participatory?) Energy Interventions (Rural & peri Urban) - Policy, Laws, regulations, pricising - Strategy - Programmes - Project s– Innovation technologies approaches Operational Tool – Assessment Framework Environment Conservation - Natural Capital - Forest - Climate change - Air pollution (indoor & out door - Land degradation Social Development - Human Capital - Education - Health - Water - Communication - Social Capital Economy growth Financial Capital Physical Capital - (Industries and agriculture) - Production - Income Operational Tool – Assessment Framework Environment Conservation - Natural Capital - Forest - Climate change - Air pollution (indoor & out door - Land degradation Social Development - Human Capital - Education - Health - Water - Communication - Social Capital Economy growth Financial Capital Physical Capital - (Industries and agriculture) - Production - Income Operational Tool – Assessment Framework Environment Conservation - Natural Capital - Forest - Climate change - Air pollution (indoor & out door - Land degradation DEA Project Analysis from 1 Literature review 2 Catalogue 3 Consultations 4 Workshops and AF 5 Case studies Energy Actors Public MEM, Private Civil Societies, NGOs CBOs. Energy Planning based on people’s Needs, opportunities and on development priorities - (Participatory?) Energy Interventions (Rural & peri Urban) - Policy, Laws, regulations, pricising - Strategy - Programmes - Project s– Innovation technologies approaches Social Development - Human Capital - Education - Health - Water - Communication - Social Capital Economy growth Financial Capital Physical Capital - (Industries and agriculture) - Production - Income Operational Tool – Assessment Framework Environment Conservation - Natural Capital - Forest - Climate change - Air pollution (indoor & out door - Land degradation Non-Energy Actors VPO MHE MCT (ICT) MF MNT MW MIaT DEA Project Analysis from 1 Literature review 2 Catalogue 3 Consultations 4 Workshops and AF 5 Case studies Energy Actors Public MEM, Private Civil Societies, NGOs CBOs. Energy Planning based on people’s Needs, opportunities and on development priorities - (Participatory?) Energy Interventions (Rural & peri Urban) - Policy, Laws, regulations, pricising - Strategy - Programmes - Project s– Innovation technologies approaches Social Development - Human Capital - Education - Health - Water - Communication - Social Capital Economy growth Financial Capital Physical Capital - (Industries and agriculture) - Production - Income Operational Tool – Assessment Framework Environment Conservation - Natural Capital - Forest - Climate change - Air pollution (indoor & out door - Land degradation

7 1.3 TaTEDO Profile TaTEDO is a sustainable energy development national NGO based in Dar es Salaam with projects and programmes in 8 regions of Tanzania. TaTEDO’s vision is communities with better access to sustainable energy services for poverty reduction, economic growth and social development while conserving the environment. And her mission is to develop and promote greater uptake and rational use of sustainable energy technologies and environmentally sound practices through provision of relevant information, knowledge and skills geared towards sustainable development.

Goals To improve quality of life of the Tanzanians by contributing to availability of improved and sustainable energy services, employment and income generating opportunities. To reduce environmental degradation resulting from increased use of wood and fossil fuels. To contribute in reducing the country’s over dependence on imported energy (electricity and fossil fuels).

Activities and Services To achieve her goals, TaTEDO undertake the following activities:- Promote the use of modern energy services for - Productive uses ( Industrial, agriculture and commerce) - Consumptive and basic needs (households and communities) - Institutional and Social needs (education, health, water, etc) Implement sustainable energy programmes and projects. Provide sustainable energy related consultancy services. Promote networking and partnership with local and international organizations. Manage and provide energy information to stakeholders. Undertake lobbying and advocacy to influence energy related policies, strategies and regulations. Support sustainable energy enterprises development. Conduct energy related applied and adaptive research on technologies and delivery mechanism.

Strength and Capacity To be able to undertake her activities and achieve her goals, TaTEDO’s policy is to continuously improve her capacity, current status include:- Thirty committed staff of whom 22 are university graduates and 8 extension staff. Supportive and reliable partners from local, national and international levels. Committed Board of Directors and members. A library with a good collection of over 4000 documents on sustainable energy and related issues. Bi-annual sustainable energy newsletter ( English and Swahili). Modern office and communication facilities. Partnership and networking with CBO, NGOs, Government and private institutions.

11 S.NProject / Programmes TitlesFunding SourcesProject Duration 1. Integrated Sustainable Energy Services for Poverty Reduction and Environment Conversation Programme ( ISES – PRECP) HIVOS – Netherlands NORAD – Norway TaTEDO July 2003 – June African Rural Energy Enterprise Development (AREED) Programme UNF, UNEP & SIDA January – December Enabling Access to Sustainable Energy Development (EASE) DGIS, ETC - Netherlands June 2004 – June Bio fuels for transport studyGTZJuly – October Biodiversity Conservation for Mountain Kilimanjaro Through Promotion of Improved Stone- made Firewood stoves UNDP/GEF October 2003 – Dec Development and Energy in Africa (DEA)EC COOPENER Programme. RISØ May 2005 – November Market Development of Solar Dryers and its products in Ukerewe District, Mwanza Region UNDP /GEF 2005 – Construction of Improved Firewood stoves in 10 schools Kondoa District WFP June - December Global Village Energy Partnership (GVEP) UNDP August 2005 – July Energy for Water, health and Education (ENABLE) SEI, EUAugust 2005 – July Sustainable Energy Professional Exchange Programme Fredskopset - Norway On-going Some Energy Projects Being Implemented by Tatedo and Partners

TANZANIA ENERGY STATUS 2.1Socio Economic Context A low income poor country with an area of 945,000Km 2, per Capita GDP – USD 280 (2003) Population of about 35 million inhabitants, annual population growth rate of 2% (2002) More than 80% of the population are engaged in Agriculture. 75% of the population live in rural areas. Main product, goods and services – Agricultural products, minerals tourism, fish, commerce, transport and communication.

Tanzania Energy Potential and Development Status SN Energy resources Potential Energy SourcesEnergy carrier DemandPercent contribution End use Equipment Services Hydro – 470 MW Small Hydro – 240MW Natural Gas – 45 m3 Coal – 1,200m tonnes Solar – 187 MW Biomass - crops residues est. 15 million tonnes Biomass - 34 million hectares of forest - 14 million Cattle - Crops residues million tonnes Wind between 1 to 6m/s Petroleum fuels: None 561 MW 4 MW 192 MW 6MW 1.2 MW 36 MW 241. MW(Fossil fuel Imported) 24 million m biogas plants 120 wind mills 1.45 million tonnes( Imported) Electricity Woodfuels Charcoal Gas Wind Petroleum fuels Petroleum Diesel etc. 500MW (peak) Suppresse d 36 millions m million tonnes ( Imported) 2 % 90% 8.0% Machines Bulbs Stoves Ovens Stoves Pumps Machines Vehicles Tractors Stoves Mechanical Power Refrigeration Communicatio n Lighting Pumped Water Cooking Pumped Water Transportatio n Cooking Lighting Power Source: Sawe 2005

Sectoral Energy Consumption Summary S.N. Sector Category Percentage of Total Energy Percentage of commercial Energy 1.Households Industries927 3.Transport650 4.Agriculture44 5.Commerce and Others15 Total100 Source: MEM

Some Poverty and Energy Indicators More than 50% of the population is living in poverty, 35.7% of which is unable to access all of the basic needs. Traditional biomass is the fuel of the poor, firewood in rural and charcoal in urban areas Human physical power is the main source of energy for agriculture and transport in rural areas. The poor spend more than 35% of their household income on energy, while the better off spend about 14.45%. Up to 50 units of electricity are subsidized-lifeline tarrif Energy is considered essential in achieving both the MDGs and NSGRP objectives and targets.

16 3.0ENERGY POLICY AND IMPLEMENTATION Focus on market mechanism to reach objectives and achieve sectoral efficiency with balance between national and commercial interests. Policy is supportive of rural energy with the following statements: — Support research and development and application of alternative energy in rural areas. — Promote entrepreneurship and private sector initiatives. — Ensure continues electrification of rural economic centers and low income customers. — Facilitate increased availability of grid and non- grid electrification for rural areas. — Establish norms, codes of practice and guidelines for rural energy supplies.

17 3.1Energy Strategies There is no deliberate energy policy implementation strategy, however the emerging strategy include:- Promoting affordable and reliable energy supplies countrywide. Reforming the market for energy services and establish adequate framework to facilitate investment, service expansion, efficient pricing mechanism and other financial incentives. Enhancing development and utilization of indigenous and renewable energy resources and technologies. Taking account of environmental concerns in all energy activities Promoting energy efficiency. Increasing energy education and building gender balanced capacity in energy planning, implementation and monitoring.

Policy Implementation Programmes and Projects The following are some projects and programmes aimed at energy policy implementation: Establishment of Rural Energy Agency and Rural Energy Fund. MEM institutional capacity strengthening project. Study for preparing Rural electrification master plan. Solar PV market development project. Implementation of the GVEP project. Power utility reforms and restructuring. Establishment of EWURA. Others

19 3.3Current Energy Policy Implementation Limitations No deliberate policy implementation strategy in place. Appropriate laws and regulations are not yet in place. No programmes for policy implementation. The existing capacity is inadequate for policy implementation. Implementation coordination with other sectors and stakeholders could be improved. Mechanism for monitoring and evaluating policy implementation need to be put in place.

20 4.0IMPACTS OF ENERGY PROGRAMMES AND PROJECTS Over the years there have been several efforts to improve the rural energy situations, some of such efforts include:- Rural electrification projects. Enhancing woodfuels supply through better forest management and afforestration projects. Demand side management through promoting efficient woodfuels production and use technologies Promoting use of woodfuels substitutes such as kerosene, biogas, coal, LPG and electricity.

21 4.1Impacts of Energy Programmes and Projects Despite the above efforts, there have been minimal impacts on rural energy situation. Woodfuels depletion continues and areas of scarcity are on the increase. More than 90 percent of the Tanzanians have no access to electricity, only 2 % of rural area have. There is weak rural energy infrastructure. More than 90% of the total energy consumed is from biomass. Human physical power is still the main source of energy for agriculture and transportation in rural areas.

Barriers To Improving Rural Energy Situation Top down approaches to rural energy planning and implementation not addressing the real development needs, priorities and causes in area specific social cultural setting. Inadequate commitment and resources allocation from the government and development partners. Financial limitations, lack of rural energy financing mechanism (affordable credits), low affordability of the rural population. Technical constraints, inadequate human resources and facilities for rural energy skills capacity building. Policy and institutional limitations, inadequate institutional framework, policies, laws and regulations. Poor private sector participation due to limited rural energy awareness information, data and poor market.

CONCLUSION AND RECOMMENDATIONS It is a great challenge to provide modern energy in rural areas, Integrated rural development should be the overall priority in meeting the energy challenge. Multi-sectoral cooperation is essential. Greater efforts should be in increasing investments from donors, government and private sector. Policy formulation process and supportive implementation instruments should be in place and enforced. More efforts should be made to promote local energy institutions and entrepreneurs. More efforts on developing effective financial and technical delivery mechanism need to be made. Special efforts need to be made to put in place appropriate policy and regulations for the use of biofuels for transport and rural energy needs. All efforts should be made to fully involve local people in all stages of designing and implementing of rural energy initiatives.

24 Thank you for your Attention Tanzania Traditional Energy Development and Environment Organization (TaTEDO) Off Shekilango Road P.O.Box Dar es Salaam, Tel: / URL.