Tanzania Rural Power in Need of Private Cash

Posted on : Tuesday , 30th June 2015

Dar es Salaam — The Rural Energy Agency (REA) has hinted that the availability of adequate fund and unwillingness of private sector to invest in off grid areas among major challenges towards improving access to electricity in rural communities writes EMMANUEL KISIMA.

This was said by REA Solar Technology Specialist, Eng. Jones Olotu during the 2nd sub-Saharan Africa solar summit 2015 held in Dar es Salaam last week.

He said the Agency in collaboration with the World Bank provided funding to rural electricity projects to the tune of $3.58 million (abiout Tsh.8.244 billion) in four years from 2010 to 2014.

He said the technologies employed were Solar PV, Biogas, Hydro and Wind Solar hybrid and project implementation duration was 18 months.

Eng. Olotu said all of the projects aimed on promotion of micro grids for electrification of remote off grid rural villages and islands but we are still far to reach our target due to the shortage of funds, decreasing cost per connection to sparsely populated off grid communities, lack of private sector investment in off grid areas.

"Only 36% of the population has access to electricity supply and 24% are connected while the demand for power grew on 10% to 15% per annum so you can see the demand regarding our National Development Vision 2025 that Tanzania to become a middle income country," he said.


He added that up to now 4% of rural electricity depend on solar PV System and 21% rural communities have access to electricity

He added that REA will continue to promote development of renewable energy projects such as solar and Wind Solar hybrid to reduce the gap and scaling up rural energy access, and creating enabling environment to attract private sector participation in off grid electrification projects.

In his comments, Chief Scientific Adviser of Southampton university Prof. Abubakr Bahaj urged REA to train own engineers for project design that fall in renewable basis and rather than concentrate on fuel and hydro because it more expensive and unreliable due climatic change.

He explained that REA has shown impressive program but they lack target, to progress access of energy in rural communities should be through renewable energy resource which the community they will ran with minimal technical assistance.

He said that in REA should have partnership with private sectors that will make the projects affordable and allow the private sector generate income from the investment

Prof. Abubakr Bahaj referred to his energy for development project which is succeeded to implement five renewable energy projects two in Kenya, one in Cameroon and two in Uganda

According to REA the majority of rural Tanzanians have no access to modern energy services. The government maintains that rural Tanzania cannot be transformed into a modern economy, and that rural Tanzanians' livelihoods cannot be improved significantly without a dramatic improvement in their access to modern energy services.

The National Energy Policy 2003 sets national energy objectives to ensure availability of reliable and affordable energy supplies, and to promote efficient energy use in order to support national development goals. The policy recognizes that, the main thrust has to be based on private initiatives and investments for exploitation of local energy sources.

The policy sets an entirely new approach to modern energy in rural areas of Tanzania and the government has committed itself to develop and implement the new strategy.