1.
Fondazione
ACRA Tanzania
Ludewa District Rural Electrification
Programme
(mini hydro-power)

2.
Projects:
• Mawengi – LUMAMA
 Total power:300 kW
 8 villages connected
 ~1,700 customer
 Isolated mini grid
• Lugarawa HP
 Total power: 1850 kW
 20 villages connected
 ~7,000 customer
 Grid connected
Projects location

3.
• Electricity is innovation: people want electricity but can’t “see”
and know the opportunity for socio-economic development
• Multi-stakeholders participation: communities, district and
village authorities, NGOs, private sector, academy
• Participatory decision making and planning
• Use an integrated approach, breaking the walls among sectors:
 Resources optimization
 Value chain development
 Synergies: Energy for
Agriculture Production Transformation Commerce
Basically: creating more with less
Approach

4.
COMMUNITIES COMMITMENT IS A KEY FACTOR IN SUCCESS OF
ANY PROJECT
• Ownership of the power plant through a community based
social enterprise: consumers are members (LUMAMA)
• Consumers association as a shareholder together with other
stakeholders (Lugarawa)
• Split ownership between energy production, transmission and
distribution:
– Production entails big investments
and is interesting for private investors
– Communities could own or participate
to distribution networks (sense
of ownership, strength sustainability)
COMMUNITY INVOLVMENT MODELS
NEW BUSINESS
MODELS

5.
New business development – market creation
- Grant for adoption of electrical
equipment for processing
- Technical and managerial training
- Selection of a number of
enterprises (i.e.: carpentries, oil
and flour producer, welding, fruit
processing, tailoring, etc.)
ELECTRICITY IS AN ESSENTIAL ASPECT IN BUSINESS OPPORTUNITY
CREATION, BUT NOT SELF-SUFFICIENT
establishment of
demonstration plots for
Sustainable and profitable production
collect market information;
supply chain analysis of
opportunities

6.
FINANCING:
• Upfront costs: Feasibility studies, environmental impact assessments
and bureaucratic procedures can affect heavily the investments
• Need of subsidies for off-grid projects and for grid extension.
• Mini-grids as an alternative
CUSTOMERS:
• Tariff structure: Develop an appropriate and affordable tariff
structure and lowering connection costs next to zero
• Developing “pay as you go” systems (pre-payment meters): to allows
consumers to better regulate consumption and to utility to get 100%
bill recovery
• Customer Creation: needs of budget (or collaboration) to build PUE
• Villages in the catchment have to be connected to the grid
Isolated mini-grid can be profitable though low profits to be expected
Lessons Learnt On:

7.
ENVIRONMENTAL (HYDRO-POWER):
• Need of financial resources for environmental conservation and
sustainable management of natural resources
SOCIAL:
• Emphasis on participation into decision making processes and
governance of the service;
• High involvement of local authorities (village, district)
TECHNICAL:
• Stress on strengthening capacities of national staff (technical,
managerial)
Private Investments are available
but a friendly environment must be created
Lessons learnt oOn:

8.
When there is no energy,
there is no colour, no
shape, no life.
(Caravaggio)
Eng. Davide Ceretti
Energy Program Manager – Tanzania
+255.766.752.372
+39.335 64.69.488
skype: davide.ceretti
davideceretti@blu.it