NATIONAL RENEWABLE ENERGY DAYRENEWABLE ENERGY FINANCING OPPORTUNITIES FROM Sustainable Energy for all by 2030 THE GOVERNMENT National Museum, Shaaban Robert Street, Dar es Salaam, JUNE, 6TH – 7TH 2012 Rural Energy Agency (REA) P.O. Box 7990 Dar-Es-Salaam Tel:+255 (0) 22 241 2001-3 Fax: +255 (0) 22 241 2007 Email: email@example.com Website:www.rea.go.tz
PRESENTATION OUTLINE Background Projects Financed through REF since 2007 Project implementation Status Sustainable Energy for all by 2030 Budget Allocation 2007/08 – 2011/12 Project Eligibility Criteria Exploiting Opportunities Required funds to Finance ongoing/New Projects Challenges Way forward END
ENERGY SECTOR REFORMSThe following are some of Institutional and regulatory frameworks in the sector:- Sustainable Energy for all by 2030 National Energy Policy 2003 Rural Energy Act 2005 Electricity Act 2008 Energy and Water Utilities Regulatory Authority Act 2001 Petroleum Exploration and Production Act 1980 Petroleum Act 2008 (downstream) Public Private Partnership Act 2010
REA/REF OPERATIONAL EXPERIENCESFrom the Energy Policy 2003; a Policy statement states that :-“ Rural energy is diverse and characterized by various actors and interests. A sustainable institutional framework that can cope Sustainable Energy for all by 2030 with the diversity, manage and co-ordinate various efforts, is a key factor for successful development of rural energy. So far, appropriate focus for handling rural energy services is lacking. There is a need to establish an institutional framework that can mobilise, co-ordinate and facilitate private and public initiatives in rural and renewable energy”. The Rural Energy Agency (REA) was established as an institutional framework to mobilize, coordinate and facilitate private and public initiatives for provision of modern energy services in rural Mainland Tanzania . REA/REF started operations in October, 2007.
VISION AND MISSION OF REA Vision Sustainable Energy for all by 2030 Transformation of rural livelihood through provision of modern energy services. Mission To promote and facilitate availability and access to modern energy services in rural Tanzania
REA/REF GOVERNANCE Board reports to both Ministers Sustainable Energy for all by 2030 Minister of MoF Minister of MEM Minister appoints Board from Rural Energy Board stakeholder reps Stakeholders REB governs REA is REF secretariat to REB Rural Energy Staff of Rural Fund Energy Agency REB apponts Trust Agent to Works with manage REF payments project developers Trust Project Developers Agent & Partners
SOURCES OF FINANCE FOR THEREF FOR FINANCIAL YEAR 2011/12. Sustainable Energy for all by 2030
PROJECTS FINANCED THROUGH SINCE 2007 Sustainable Energy for all by 2030
BUDGET ALLOCATION 2007/08 – 2011/12 Sustainable Energy for all by 2030TZS YEARS
PERCENTAGE DISTRIBUTION OFPROJECTS FINANCED FROM REF AS OF MARCH 2012 Sustainable Energy for all by 2030
EXPECTED NUMBER OFCONNECTIONS FROM TURNKEY RE THROUGH TANESCO Sustainable Energy for all by 2030
Sustainable Energy for all by 2030DISTRIBUTION OF SOLAR PV SYSTEMS
PERCENTAGE DISTRIBUTION OF PROJECTS ISSUED WITH COMPLETION CERTIFICATE Sustainable Energy for all by 2030
PROJECT ELIGIBILITY CRITERIAEligible projects supported by the REF include: Grid Extension; Off-grid; Small hydropower Supply into Main Grid & Distr. Net. Sustainable Energy for all by 2030 Supply to Mini grid & Distr. Net; Supply into Main Grid Supply into Mini grid Green field Solar Packages/Solar lanterns; Wind; Biomass; and Energy efficiency. Technical Assistance to project developers According to Section 22(3) of the Act, the Fund is used mainly to co- finance projects from project champions and cannot be used for financing operation costs or debts services costs of any project or developer.
SMALL POWER GENERATION ANDDISTRIBUTION PROJECTS (SPGD) Sustainable Energy for all by 2030
SMALL POWER GENERATION AND DISTRIBUTION PROJECTS (SPGD CONT.REA in collaboration with public and private sector is carrying out the following:-a) Promoting development of small power projects which can sell power to grid and Sustainable Energy for all by 2030 mini-grid networks by putting in place; Standardized Power Purchase Agreement (SPPA) and Standardized tariffs (SPPT) calculation methodologies based on the avoided cost to the power utility; Guidelines and Rules, specifications, standard and norms for connection of small power project to the grid/minigrid; Credit line to enable small power developers to access long term loans from commercial banks
EXPLOITING OPPORTUNITIES1. REA supports development of rural electrification projects by providing the following:- Matching grants for:- - Market development (e.g. market studies, promotion, education, Sustainable Energy for all by 2030 etc) - Business improvement (e.g. business plan preparation, staff training, etc) - Pre-investment and preparation activities (e.g. preparation studies for licenses) - Market entry (e.g. establishing new outlets and networks, demonstrations) - New initiatives (e.g. new alliances and partnerships, new territories, etc) Performance grants; (during development phase) Technical assistance; (Engagement of consultants) Capacity building (training, ); Facilitation of carbon finance; Support to participate in local and national exhibitions;
EXPLOITING OPPORTUNITIES CONT.2. Scaling Up Renewable Energy Program in Low Income Countries (SREP) In 2011 Tanzania through REA expressed interest to be among the pilot countries; Sustainable Energy for all by 2030 Tanzania was in the reserve list only six countries were selected; In 2012SREP sub – committee meeting held in Nairobi March 2012 select Tanzania to be the 7th country in the pilot list; A total of USD 50 Mln has been allocated to Tanzania though REA; To prepare list of renewable energy projects to be implemented under SREP financing. Measuring Success • Remove barriers to renewable energy • Lead to replication of renewable energy investments • Increase installed renewable energy capacity in a country’s energy supply
REQUIRED FUNDS TO FINANCEONGOING PROJECTS FY 2012/13 (BILLIONTZS) Sustainable Energy for all by 2030
NEW PROJECTS FY 2012/13 (BILLION TZS) Sustainable Energy for all by 2030
OTHER DPS Solar PV SHP Biogas Sustainable Energy for all by 2030 SSMP 1 Pilot Regions for IREP
CHALLENGESo Increased electricity demand which require massive investments in generation, transmission and distribution;o Inadequate funds allocation and availability while the grants requests are ever increasing Sustainable Energy for all by 2030o Inadequate private sector participation in investment;o Limited long-term financing especially for small / isolated rural energy projects;o High interest rates loans from commercial banks;
WAY FORWARD REA intends to:- Use Low Cost Design Standards for affordability strategy and scale up rural electrification; Sustainable Energy for all by 2030 Increase sources of funds for Rural Energy Fund; Coordinate with Local Government Authorities on energy issues; Continue to build capacity of the private sector to participate in scaling up access to modern services to rural communities; Continue with international networking and linkages eg South-South cooperation; Disseminate Baseline Energy Survey results; and Carry out Rural Energy Master Plan.
SPP DEVELOPMENTRENEWABLE ENERGY PROJECTS Sustainable Energy for all by 2030
ASANTENI KWA KUNISIKILIZA! Sustainable Energy for all by 2030 THANK YOU FOR YOUR ATTENTION
A particular slide catching your eye?
Clipping is a handy way to collect important slides you want to go back to later.