Presented at smart village workshop in TerratiBy: L. Manyanga.

TAREA branch Chair Person &

KAKUTE Ltd Executive Director

SMART VILLAGE PROJECTS FROM Tanzania Perspective.

Content Introductions Lesson learnt Rural Energy and Access to Modern Energy

Services.Lesson learnt from the field.Conclusion and the way forward.

Introduction of KAKUTE KAKUTE Projects Company Limited (KPCL) is registered as a not for profit

Local company based in Tanzania, owned by its principal founder members which include (Mr Erwin Protzen, Ndwatta M. Ndwatta and Livinus Manyanga). The company was incorporated under the companies act 2002 in 1995 and reregistered on 18th December 2008 with registration No 69039.

Company Vision and Mission.  KPCL vision: To be one of the lead organizations involved in technology transfer

and sustainable development.

KPCL views its mission: as increasing cooperate community’s productivity, realizing maximum benefit from their business development though product development, training on market based solution and consulting on value chain development.

KPCL values and objectives: is dedicated to establish and build long-term relationship with its stakeholders includes Private sector, Local Government Authorities, NGOs and community based organizations through quality training, advocacy and consultant service. The goal is steady expansion and becoming sustainable.

Projects initiated by KAKUTE 1995-2014. 1995 – 2000 commercialization of T-Press project activities in Tanzania.

2000 – 2005 Initialization, development and implementation of Jatropha project in Tanzania. 2005 KAKUTE celebrate 10th years anniversary through public.

2005 – 2010 Commercialization of Jatropha project in Tanzania Founding and incubation of JPTL, KAMA herbal products in Tanzania. Become founder & member of TAREA, and National Biofuel Taskforce in Tanzania.

2007 KAKUTE won edition of the “Roy Family Award for Environmental Partnership” assigned by the Harvard University (USA),

18th December 2008: KAKUTE changes its mandate to a company Limited by guarantee without share capital in the name of KAKUTE PROJECTS COMPANY LIMITED.

2010 -2015; Incubation of the prepaid solar business model in Tanzania MOBISOL Uk Limited. Incubate EmbarkEnergy business model in Tanzania.

2012-2014 Implement successfully LRTC project with REA, and serve as LCB with SNV.

Introduction of TAREATAREA (Tanzania Renewable Energy Association) is the membership association standing for uniting the renewable energy stakeholders for the promotion of the sustainable renewable energy technologies in Tanzania Mainland.

To date membership -405 of which 65 are of Corporate category.

The national headquarter based in Dar Es Salaam with 2 branches. Lake Zone branch based in Mwanza and Northern Zone based in Arusha.

Mission of TAREA is to promote and advocate the increased use of Renewable Energy by developing an effective network of members and stakeholders, emphasising the need for quality and best practice throughout the sector.

TAREA core activities. To advocate for Government policies and regulations.(taxation,

SPP, Standards, Feed in Tariffs)

To support and encourage best practice, including development and enforcement of standards and codes of conduct. (Co operation with TBS, FCC and TRA.)

To promote the local manufacture of Renewable Energy products and enterprise development in the Renewable Energy.

To facilitate market development of Renewable Energy technologies, applications and services.

Research in RE Technologies.

Renewable energy resource in Tanzania.Tanzania has a huge resource base of renewable energies

which include wind, solar, biomass, mini-hydro, geothermal, tidal waves, and ocean, thermal conversion.

Renewable energy technologies currently in use in the country include solar thermal, solar photovoltaic (PV), wind, bio-gas, liquid-biofuels, biomass based cogeneration and gasification.

Renewable energy is gaining a lot more political attention now than it was in the past and though it is not a fully regulated sector; the government is looking into it seriously as the way forward in trying to address the lack of energy to majority of the population and the country as a whole.

The challenges to disseminate RETs The challenges are harsh terrains and inaccessibility due to

underdeveloped infrastructure leading to high cost of rural electrification projects;

High operating costs of grids in rural areas due to low population density;

Acquisition of way-leaves due to high land compensation demands and vandalism of power infrastructure;

Underdeveloped markets due to low purchasing power, limited technical and financial capacity of indigenous entrepreneurs;

Low awareness among key stakeholders on opportunities of investing in rural areas.

Rural Energy and Access to Modern Energy Services.

Rural Energy Agency The Government established the Rural Energy Agency to

accelerate the pace of rural electrification in the country. The objective is to facilitate availability of reliable modern energy services for social and economic transformation in rural areas.

The implementation of REA Programme increased rural connectivity levels to 7 percent in 2013 from 2 percent in 2007. At the present 36.4 percent of the Tanzanian population have access to electricity services with overall national connectivity rate of 24 percent. The government plans to increase the connectivity level to 30 percent 2015; 50 percent in 2025; and 75 percent 2033.

The major barriers toward improving rural electricity connectivity include: absence of national grid in large part of the country, high cost of delivering electricity to rural areas, high upfront investment costs; scattered settlements in the rural areas leading to long and costly distribution lines.

The policy statement .The Government shall

1. Establish Rural Electrification Master Plan; 2. Strengthen the institutional capacity for effective facilitation,

administration and monitoring of the modern energy services; 3. Facilitate private sector participation including self-help groups in

provision of modern energy services by providing fiscal incentives to both producers and users;

4. Promote and facilitate adoption of appropriate modern energy technologies and enforce compliance with set standards;

5. Collaborate with development partners for specific programmes especially in areas less attractive to the private sector;

6. Promote participation of financial institutions in provision of funds for development of rural energy projects;

7. Build appropriate local capacity for manufacture, installation, maintenance and operation of appropriate energy technologies in rural areas; and

8. Reduce connection charges by providing connection subsidy to make electricity connection more affordable

Lesson Learnt from the field

Needs for renewable energy in rural area.Renewable energy technologies need to be implemented

to improve the current lack of access to energy. However, the implementation of renewable energy technologies in Africa often fails, or the technologies are found to be unsustainable in the longer term.

Project developer (Local champions) of renewable energy technologies in Tanzania are required because much information in rural Tanzania is communicated by word of mouth as most households do not have access to modern communication technologies or infrastructure.

Projects in Tanzania are often successful in the short term when the donor agencies or NGOs are on site with the implementation, but fail when these agencies leave.

Ease of transfer of knowledge and skills to relevant people in Tanzania. In general, the simpler the technology selected, the easier the transfer of

knowledge and skills to the relevant people in Tanzania.

Local champions are used for social marketing, Demonstration sites are often installed at the area of the champions and prospective adopters are then brought to these area for demonstrations It is important that the owners of the demonstration technology are satisfied with the performance of the technology.

As renewable energy technologies are often new to the areas where they are implemented, innovative individuals who are prepared to take the risk of implementation are required.

Local champions assist in training quality control promotion installation, service , monitoring and supervision.

If the local champions are properly trained, they can also assist in conflict

resolution.

Adoption by community

It is important that before a renewable energy project is implemented the capacity in the community be determined.

To facilitate adoption by the community the benefits of adoption must be determined and the information must be distributed to the community.

Client satisfaction is very important; without this other members of the community will not be willing to adopt a new technology. Pilot sites can be selected using partner organizations that work in the local community .

The implementation at the selected pilot sites must have high quality of implementation and training. Public places such as school or health facilities can be used for pilot sites. Pilot sites can be used for training , as part of the promotion campaign, iterative development, and as demonstration plants.

The lessons learnt during the pilot phase can be used to improve future implementation. Determine priorities of the population. Energy plans and policies can be investigated. It is important to understand the priorities of the population as the population might not understand the benefits of a specific technology.

Information distribution. It is important that people are made aware of the benefits of the

technology to change their attitudes as negative attitudes can hamper implementation. If the value of the technology is perceived to be low by the community, adoption will be limited.

Awareness campaigns are necessary to ensure that the consumer population can make rational choices about energy. It was found that the higher the education level of the community the better the adoption rate.

Client satisfaction. Quality control is important to ensure adoption. Client satisfaction is very important to ensure success.

The technology selected must be close to what the people know and involvement by the community is important.

The needs of the community must be understood before implementation.

Financial capacity. Financial capacity refers to the capacity of the performing

organization to finance the components and materials required for project implementation. Especially when the project developer first starts up financial capacity that can hinder the developer from succeeding.

With capital intensive technologies such as solar photovoltaic mini-grid it was found that project developer stop supplying the technology because of financial constraints.

The following methods are recommended to ensure that the project developer would have the financial capacity to implement the technologies: financial model of the project need to be set up in such a way that the project developer has minimum capital outlay subsidies, training target community to work and using technology that has very little capital outlay.

Conclusion and way forward.

Financial stability.Availability of finance is stumbling block to the implementation

of renewable energy technology access in many rural areas in Tanzania, as most of the rural population are very poor, some renewable energy technologies have a high initial installation cost, and the availability of firewood means that the rural population does not value of renewable energy technologies for most of their energy needs.

The main ways of payment are on cash basis, materials, produce barter or labor.

Cash is normally raised by selling, animal, aqgriclural produce or employment. The savings achieved using renewable energies can be used to pay off loans. Some of the institutional RETs facilities in Tanzania were funded by donors or investors. There is a need to look at energy production and energy use for productive use.

Finance methods. The methods used by the Government to make finance available

include subsidies, credit loans and the giving of the renewable energy technology to the population for free or on loan.

Subsidies are provided by donor agencies or government. The government can subsidize renewable energy technology by providing financing or by removing duties and taxes on the technology.

The rural poor do not normally have access to loans and for this reason the implementing agency must negotiate with banks for favorable rates and payment periods.

One of the problems that have not yet been solved is the provision of finance to households with seasonal income . Subsidies are carefully managed, in some cases subsidy is paid directly to the bank and in other cases directly to the installer through M-Pesa.

Government support

Governmental support is important whether it was available for the specific project or not. Acceptance by the government of the specific renewable energy programme is important. Government official responsible for energy at Local Government level is missing . You can not find government energy extension officer at any Region, District and village level.

The government support policies to save the environment by banning the cutting of trees for example, and by ensuring that alternatives are available for the population but private sect left behind themselves to take this initiative to village level without having conducive business environment.

Governmental support is required in a number of areas including: regulations such as strategies, policies and legislation; standards; reduction in or elimination of duties and taxes; funding or subsidies; licensing of technologies ; setting up energy regulation agencies; partnering with donor organizations; building technical capacity; public awareness; market promotion; forest law enforcement; health and safety; and monitoring and evaluation.

Any question please welcome.

Thank you for your attention.