SMALL HYDRO MAPPING REPORT Renewable Energy Resource Mapping: Small Hydro - Tanzania [P145271] June 2018

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SMALL HYDRO MAPPING REPORT Renewable Energy Resource Mapping: Small Hydro - Tanzania [P145271] June 2018 Phase 3 - Production of Validated Small Hydro Atlas Public Disclosure Authorized SMALL HYDRO MAPPING REPORT Renewable Energy Resource Mapping: Small Hydro - Tanzania [P145271] June 2018 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized IN ASSOCIATION WITH FINAL OUTPUT Small Hydro Tanzania REA / The World Bank Contract n°7169139 SHER Ingénieurs-conseils s.a. Rue J. Matagne, 15 5020 Namur – Belgium Phone : +32 81 32 79 80 Fax : +32 81 32 79 89 www.sher.be Project Manager: Rebecca DOTET Reference SHER : TNZ01 Phone : +32 (0) 81 327 982 Fax : +32 (0) 81 327 989 E-mail : [email protected] Rev.n° Date Content Drafted Verified 0 02/2015 Small Hydro Mapping report - Interim Pierre SMITS Quentin GOOR 1 04/2015 Small Hydro Mapping report Pierre SMITS Quentin GOOR Final Phase 1 2 12/2017 Small Hydro Mapping report Quentin GOOR Pierre SMITS update Phase 3 - Draft 3 01/2018 Small Hydro Mapping report Damien DUBOIS Quentin GOOR update Phase 3 - Final 4 06/2018 Small Hydro Mapping report Damien DUBOIS Quentin GOOR update Phase 3 - Final (following comments from The World Bank) SHER INGÉNIEURS-CONSEILS S.A. IS ISO 9001 CERTIFIED SHER / Mhylab Small Hydro Mapping Report – June 2018 Page 2 of 168 Small Hydro Tanzania REA / The World Bank Contract n°7169139 ABBREVIATIONS AND ACRONYMS AfDB African Development Bank ASTER GDEM Advanced Spaceborne Thermal Emission and Reflection Radiometer Global Digital Elevation Model CIF Climate Investment Funds CSOs Civil Society Organisations DfID Department for International Development EAPP East African Power Pool ESMAP Energy Sector Management Assistance Program EUEI European Union Energy Initiative EWURA Energy and Water Utilities Regulatory Authority FAO Food and agricultural organization FGDs Focused Group Discussions GoT Government of Tanzania GRDC Global Runoff Data Centre GTZ Deutsche Gesellschaft für Technische Zusammenarbeit GW Gigawatt GWh Gigawatt hour ICEIDA Icelandic International Development Agency IDA/GEF International Development Agency / Global Environment Fund IFC International Finance Corporation IPP Independent Power Producers JICA Japan International cooperation Agency Kfw/BGR Kreditanstalt für Wiederaufbau kW Kilowatt kWh Kilowatt hour MDBs Multi-lateral Development Banks MDGs Millennium Development Goals MEM Ministry of Energy and Minerals MNRT Ministry of Natural Resources and Tourism MW Megawatt MW Mega Watt MWh Megawatt hour PPP Public-Private Partnership PS Permanent Secretary REA Rural Energy Agency REF Rural Energy Fund SPPA Small Power Purchase Agreements SREP Scaling Up Renewable Energy Program SRTM Shuttle Radar Topography Mission SSA Sub-Saharan Africa TANESCO Tanzania Electric Supply Company TEDAP Tanzania Energy Development and Access Project ToRs Terms of Reference UNEP United Nations Environment Program WB The World Bank WBO Water Basin Office ZECO Zanzibar Electricity Company Limited SHER / Mhylab Small Hydro Mapping Report – June 2018 Page 3 of 168 Small Hydro Tanzania REA / The World Bank Contract n°7169139 TABLE OF CONTENT 1 INTRODUCTION ......................................................................................................................................................................... 11 1.1 BACKGROUND OF THE ESMAP PROGRAM ............................................................................................................................. 11 1.2 OBJECTIVE OF THE STUDY ..................................................................................................................................................... 11 1.3 SCOPE OF THE REPORT ........................................................................................................................................................ 11 1.4 OVERALL APPROACH AND CHALLENGES ................................................................................................................................. 13 2 ELECTRICITY SECTOR IN TANZANIA ..................................................................................................................................... 14 2.1 INSTITUTIONAL FRAMEWORK ................................................................................................................................................. 14 2.1.1 Actors ............................................................................................................................................................................ 14 2.1.2 Specificities of the Institutional and Legal Framework in Tanzania ............................................................................... 17 2.1.3 Electric Sector Reform Strategy and Roadmap ............................................................................................................ 18 2.2 ELECTRICITY DEMAND AND ACCESS RATE ............................................................................................................................... 20 2.2.1 Electricity Demand and access rate .............................................................................................................................. 20 2.2.2 Demand Forecast .......................................................................................................................................................... 20 2.3 POWER GENERATION - CURRENT AND PROJECTED SITUATION .................................................................................................. 21 2.4 FINANCIAL SITUATION AND FINANCING REQUIREMENTS ........................................................................................................... 22 2.5 RENEWABLE AND RURAL ENERGY .......................................................................................................................................... 23 2.6 OTHER RENEWABLE ENERGY SOURCES .................................................................................................................................. 23 2.6.1 Geothermal Energy ....................................................................................................................................................... 23 2.6.2 Wind .............................................................................................................................................................................. 24 2.6.3 Solar .............................................................................................................................................................................. 24 2.6.4 Off-Grid Solar Photovoltaics .......................................................................................................................................... 24 2.6.5 Grid-Connected Solar Photovoltaics ............................................................................................................................. 24 2.6.6 Solar Thermal ................................................................................................................................................................ 24 2.6.7 Biomass ......................................................................................................................................................................... 25 3 SCALING UP THE DEVELOPMENT OF SMALL HYDROPOWER IN TANZANIA ................................................................... 26 3.1 CHALLENGES FOR THE DEVELOPMENT OF SMALL HYDRO IN TANZANIA ..................................................................................... 26 3.1.1 Interconnected main grid (Tanesco) .............................................................................................................................. 26 3.1.2 Mini-grids (Tanesco/Private) ......................................................................................................................................... 26 3.1.3 Stand-alone off-grid systems powered by a unique source of production ..................................................................... 27 3.2 STRENGTHS AND WEAKNESSES OF SMALL HYDROPOWER DEVELOPMENT ................................................................................. 27 3.3 SMALL HYDROPOWER DEVELOPMENT: AN OPPORTUNITY FOR TANZANIA ................................................................................... 30 3.4 PROGRAMS SUPPORTING THE SMALL HYDRO DEVELOPMENT ................................................................................................... 33 3.4.1 Tanzania Energy Development and Access Expansion project (TEDAP) .................................................................... 33 3.4.2 Scaling-up Renewable Energy Program (SREP) .......................................................................................................... 33 3.4.3 Integrated Rural Electrification Planning (IREP) ........................................................................................................... 33 3.4.4 Mini-grids based on small hydropower sources to augment rural electrification in Tanzania - UNIDO ......................... 34 3.4.5 ESME - Supporting Energy SMEs in sub-Saharan Africa - GVEP ................................................................................ 34 3.4.6 Rural Electrification Master Plan and Investment Prospectus - NORAD ...................................................................... 35 3.4.7 Possible future funding for rural electrification and small hydropower .......................................................................... 35 3.5 LESSONS LEARNT FROM THE CONSULTANT IN SMALL HYDRO PLANNING
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