Why off-grid renewable energy technologies suit Tanzania best

Renewable and hybrid energy mini-grids hold significant potential for the country especially in the developing country like Tanzania, not only for increasing energy access, but also by enabling the increased use of renewable energy in the country, with its benefits for local employment and economic development.

According to experts mini-grids are technically and in
creasingly economically viable modern energy provision solutions in off-grid areas, and the hybridisation of existing fossil fuel based mini grids can result in substantial savings–not only for consumers, but also for governments and parastatal utilities.

Most developing countries have abundant renewable energy resources, including solar energy, wind power, geothermal energy, and biomass as well as the ability to manufacture the relatively labor-intensive systems that harness these.

It’s better for a developing country like Tanzania to ensure that it utilises the available energy resources in order for every part of the country to have electricity by adopting off grid technologies.

By developing such energy, experts say Tanzania can reduce its dependence on water and oil, creating energy portfolio that are less vulnerable to price rises. In many circumstances, these investments can be less expensive than fossil fuel energy systems.

Isolated rural areas electricity grid extensions are often not economical. Off‐grid renewable technologies provide a sustainable and cost‐effective alternative to the diesel generators that would be otherwise be deployed in such areas. Renewable technologies can also help to displace other unsustainable energy sources such as kerosene lamps and traditional biomass.
In consideration of the whole scope of renewable energies, they play a crucial role in the energy in a country.
In a bid to ensure that a large rural population gets energy for their economic development, GE Africa, teamed up with the US African Development Foundation (USADF) and the US Agency for International Development (USAID) to give electricity rural Tanzanians through the Power Africa Off-Grid Energy Challenge.

Through the challenge which included six African countries which are Liberia, Nigeria, Ghana, Ethiopia, Kenya and Tanzania as well, four Tanzanian firms have each been awarded at least USD100,000 (equivalent to 166.2m/-) to implement power projects in under-served rural areas.

The four are winners of the ‘Power Africa Off-Grid Energy Challenge’ that is part of US Government (President Barack Obama’s larger Power Africa initiative).

They are, Lung’ali Natural Resources Company Limited from Iringa, Space Engineering Company Limited from Mbeya, Jamii Power Limited from Mara and L’s Solution from Arusha.

Speaking during the handover event conducted recently in Dar es Salaam, the US Ambassador to Tanzania, Mark Childress said the competition was aimed at increasing electricity generation and access especially on off-grid or micro-grid solutions so as to serve rural populations.
“In today’s Africa, we need new approaches to bring power to every community, particularly reaching those that are underserved by conventional grid-based systems,” he said.

He pledged that the US government will continue supporting the winners until the completion of the project while urging the residents where these projects will be implemented to offer their cooperation.
The off-grid solutions deploy renewable power for social economic activities to the under-served and marginalised populations in rural areas.
They aim at promoting innovative energy solutions that can develop, extend or otherwise scale-up the use of proven technologies for off-grid energy.
Director General of Tanzania Electric Supply Company (TANESCO), Felichesmi Mramba, commended the US government for its contribution to Tanzania’s power sector.
“I commend efforts made by the US government in extending this help that will allow rural communities access to reliable power supply and thus support their social and economic development,” he said.

Mramba also said there is an increased demand for power for both industrial and domestic consumption and as such, called on more companies to invest in power generation ventures.

“Technology is changing, population is also increasing so we need more companies to help supply more people with electricity, because power scales up economic development,” observed Mramba.

The Managing Director of Lung’ali Natural Resources Company Ltd, Luciano Mpoma, one of the four winners, said their project is aimed at serving 15 villages in Kilolo District, Iringa Rural with a population of 30,000 people.

He said their project will help reduce use of charcoal and dependency on kerosene for cooking and lighting. He said the electricity they will serve will be generated at low costs allowing affordable service charges to the consumer.

According to the SREP Investment Plan Tanzania (2013), large hydro power, natural gas and geothermal power plants have the lowest levelised electricity generation costs. This explains, why hydro, natural gas and coal are supposed to be the main pillars of the grid connected power supply in future.

In context of rural electrification, Solar PV and Wind can play a crucial role in areas where connection to the main grid is not economically viable.

According to the latest SREP report (2013), people are far from the grid and have a low density. These are 33 percent of the overall Tanzanian population.

If there is not the option of small hydropower or biomass power plants, Solar PV-Battery Diesel hybrid solutions is the most cost-effective solution for mini-grids.

It is better to put effort by making renewable energy work in rural areas. This implies a new paradigm for rural development. Reducing the use of spatially blind incentives, introducing a flexible policy framework, and taking into account the characteristics and specific needs of hosting economies could be a way to capitalise on the investment in renewable energy in terms of economic development. In particular, alternative energy should not be considered as a standalone sector within regional rural economies.

Potential backward and forward linkages with rural industries such as forestry or manufacturing should be developed through an integrated approach to renewable energy deployment.

Collective action should be stimulated through intermediate institutions active in rural communities and policy makers should aim at involving a larger number of stakeholders in policy interventions to stimulate sustainable development and improve local support

Given the dependence on energy for sustaining and developing Tanzanians, it is imperative that policy makers prepare for the opportunities and concerns associated with various energy development scenarios, and work to ensure the availability of one of their society’s most valued resources.