arusha | jun-14 | market-based solutions for scaling access to energy in tanzania
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Introduction to SNV Tanzania
programs in Renewable Energy
June 2014
Market-Based Solutions for Scaling
Access to Energy in Tanzania
Who we are
• SNV is a Netherlands based non-profit, international development organisation, with >40 years of on the ground experience.
• Local presence: >2,000 professionals in 36 developing countries in Africa, Asia and Latin America.
• Capacity development services to local public and private organisations increasing access to basic services, income and employment.
Connection “leveraging critical mass”
Scalability “seeking a systems change”
Effectiveness “empowering local actors”
Market-Based Solutions to Eliminate Poverty
Where we are
4
What we do
Approaches interlinked with technology
Public Private Sector Partnership Multi-stakeholder approach
Capacity Building and Investment Advisory Services
Market Based Solutions / Value Chain Development / Inclusive Business
Governance and Accountability / Gender and Social Inclusion
Quality Assurance: Management for Results
Facilitation of sustainable
distribution chains for RE
products and services for
households and SMEs in
underserved areas:
Focus on:
cooking and lighting
needs for households;
focus on productive use
needs for SMEs.
SNV and RE market development projects in Tanzania
• Biogas Program:
Tanzania Domestic Biogas Programme: 2009-2017
Solid State Digester promotion: 2011-2013
PPP Bioslurry application in coffee sector: 2014-2017
Milk chilling innovation project: 2014-2015
• Improved Cooking Solutions (ICS):
Tanzania ICS program (EnDev): 2013-2015
ICS Taskforce: 2012-2014
• Pico-PV Solar:
Results Basing Financing (EnDev): 2013-2017
Integrated RE Services: 2014-2015
• Cross-cutting:
Opportunities for Youth Employment (OYE): 2013-2018
EnDev: Results Based Financing for Pico-Solar
Market Development in the Lake Zone
Goal • The 4 year RBF aims to establish a temporary financial
product within mainstream banking that is accessible to pico-solar import-suppliers actively engaged in distribution chain development.
• RBF incentives valued at €1 million is hosted by a Financial Institution and disseminated in 2 equal instalments as:
i. Product bonus to retailers
ii. Capital bonus to import-suppliers.
EnDev: Results Based Financing for Pico-Solar
Market Development in the Lake Zone
• Increasing number of reliable solar suppliers entering the market
• Expansion of the industry is dependent on the ability to consistently place large import orders
• Lack of reliable retail chain tapping the deeper portions of the rural off-grid consumer market
• Limited means to achieve economies of scale without incurring high costs and/or monopoly of the supply chain
Suppliers
• Unreliable sources for quality solar technology options capable of meeting diverse consumer energy needs and incomes
• Small working capital paired with poor pricing practices embed a high margin /low turnover culture
• Uniform, expensive and low quality solar products become the market norm
• Limited entry of new players in agri-business with linkages to deeper rural markets
Retailers
• 35% of all consumers indicate that they prefer solar based energy technologies. This number climbs to as high as 60% in rural communities.
• Avg. energy expenses TZS 40,000 monthly
•More than 45% of energy expense dedicated to kerosene, charging, batteries and candles – all of which can be easily satisfied with pico-solar.
•Only 3.5% of consumers indicate ownership of solar products!
Consumers
EnDev: RBF Pico-Solar
Suppliers Retailers Consumers
+ +
EnDev: RBF Pico-Solar
Targeted Results • 182,000 persons in 115,000 rural households will have access to
clean solar energy
• 22.8 million Litres of kerosene (with an est. value of €22.8 million) in household fuel savings resulting in the avoidance of 57,000 tCO2eq emissions
• 90 new and/or improved import-supply & retail energy enterprise employments
• €3.1 million in private sector investments (NPV) relative to €1.14 million in RBF program costs (NPV)
EnDev: RBF Pico-Solar
ASANTE SANA
Martijn Veen mveen@snvworld.org Josh Sebastian jsebastian@snvworld.org
THANK YOU
Sector Leader / Senior Advisor Renewable Energy, Arusha
Renewable Energy Advisor, EnDev Programme Manager, Mwanza
SNV Netherlands Development Organisation
Chole Road Plot 1124 P.O. Box 3941 Dar es Salaam, Tanzania
Tel +255-(0)22260340 www.snvworld.org
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