arusha | jun-14 | market-based solutions for scaling access to energy in tanzania
DESCRIPTION
The workshop in Arusha explored the East African/Tanzanian environment for village energy, local case studies, challenges and opportunities, with a view to formulating policy recommendations for policymakers, funders, NGOs and other stakeholders the region. An important part of the workshop, and indeed the whole Smart Villages initiative work programme, was to gather evidence from existing projects that have provided or facilitated sustainable off-grid energy solutions in the developing world.The workshop gathered more than 50 experts, including policymakers, NGOs, off-grid energy entrepreneurs and others to look for solutions to providing energy to villages off the grid.TRANSCRIPT
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 [email protected] Josh Sebastian [email protected]
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