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Market Intelligence on Improved Cook Stoves in Mtwara Region

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Market Intelligence on Improved Cook Stoves in Mtwara Region Market Intelligence on Improved Cook Stoves in Mtwara Region ICS Taskforce Tanzania November 2013 About ICS Taskforce Facilitated by SNV, the ICS Taskforce of Tanzania was created in 2011, with the Ministry of Energy and Minerals (MEM) as the Chair and the Tanzania Renewable Energy Association (TAREA) elected as the secretariat. The ICS Taskforce was initiated with the aim to increase coordination in the Improved Cook Stove (ICS) sector, for stakeholders to better understand and develop the sector through multi-stakeholder processes, while doing the necessary studies to come to a joint way forward for further ICS market development in the country. This document is one of the resulting documents of the ICS Taskforce. Other documents include: a technical assessment report of ICS in Tanzania, market intelligence studies for ICS in different regions of the country, ICS policy analysis, and a Country Action Plan for Clean Cookstoves and Fuels. Author: Mzumbe Musa, consultant Coordination and editing: Finias Magessa & Martijn Veen, SNV Tanzania Photos cover page: Mzumbe Musa ISBN: 978-9987-9895-4-6 Disclaimer Any views or opinions presented in this publication are solely those of the authors and do not necessarily represent those of SNV, TAREA, or any other institutional member of the ICS Taskforce, and should not be directly attributed to any of the individuals interviewed or organizations involved unless quoted verbatim. Whilst the utmost care has been made in compiling accurate information for this report, SNV cannot guarantee it is factual accurate or up to date at the time of reading. 2 Table of Contents List of Tables ................................................................................................................................. 5 List of Figures ................................................................................................................................ 6 Acronyms and Abbreviations ............................................................................................................ 7 Executive Summary ........................................................................................................................ 8 1. INTRODUCTION .................................................................................................................... 12 1.1 Background of the Study ................................................................................................. 12 1.2 Objectives of the Study ................................................................................................... 12 1.3 Scope of the study .......................................................................................................... 13 2. STUDY METHODOLOGY ........................................................................................................... 14 2.1 Introduction................................................................................................................... 14 2.2 Survey Methodology ....................................................................................................... 14 3. PROJECT AREA DESCRIPTION .................................................................................................. 17 3.1 Location, Administration and Population of Mtwara Region .................................................... 17 3.2 Social Demographic and Economic Profiles of Target Districts ................................................ 17 4. FINDINGS FROM CONSUMER SURVEY ....................................................................................... 21 4.1 Household Survey .................................................................................................................. 21 4.1.1 Profile of Household Respondents .............................................................................. 21 4.1.2 Energy Sources Used For Cooking .............................................................................. 21 4.1.3 Energy Sources Used For Lighting .............................................................................. 24 4.2 Institution Survey .................................................................................................................. 26 4.2.1 Health facilities ....................................................................................................... 26 4.2.2 Education Facilities .................................................................................................. 29 4.3 Business Survey .................................................................................................................... 31 4.3.1 Energy Sources Used For Cooking .............................................................................. 31 4.4 Estimated Demand of ICS, Biogas and Lighting Options ............................................................... 32 4.4.1 Estimated Demand of ICS ......................................................................................... 32 4.4.2 Estimated demand of Biogas ..................................................................................... 33 4.5 Indoor Air Pollution ................................................................................................................ 33 5. FINDINGS FROM MICRO-BUSINESS SURVEY .............................................................................. 34 5.1 Coordination of the ICS, Biogas and Solar Distribution Activities ................................................... 34 5.1.1 Improved Cook Stoves ............................................................................................. 34 5.1.2 Biogas ................................................................................................................... 35 5.1.3 Solar PV ................................................................................................................. 36 5.2 Number of Micro-Businesses in Target Areas .............................................................................. 38 5.3 Existence of Micro-Businesses Already Providing Off-grid Electricity Based Services ......................... 39 3 5.4 Readiness of Entrepreneurs and Micro-Businesses to engage in Energy Services Businesses ............. 40 6. ENABLING ENVIRONMENT SURVEY ........................................................................................... 41 6.1 Evidence of Appropriateness for ICS businesses in the Target Areas ....................................... 41 6.1.1 Improved Cook stoves Business ................................................................................. 41 6.1.2 Biogas Businesses ................................................................................................... 41 6.1.3 Solar PV Businesses ................................................................................................. 41 6.2 Lessons Learnt From Other Organizations/initiatives ............................................................ 41 6.2.1 Mtwara District Council ............................................................................................. 41 6.2.2 Masasi District Council .............................................................................................. 44 6.2.3 Newala District Council ............................................................................................. 45 7. SUPPLY CHAIN SURVEY/ ASSESMENT ....................................................................................... 46 7.1 Supply Chain Survey .............................................................................................................. 46 7.1.1 ICS Supply Chain .................................................................................................... 46 7.1.2 Biogas supply Chain ................................................................................................. 47 7.1.3 Solar PV Supply Chain .............................................................................................. 47 7.2 Agricultural and Penetrating Rural Companies ............................................................................ 48 8. ENERGY OPTION ANALYSIS ..................................................................................................... 49 8.1 Econometrics Used For Cost Benefit Analysis ...................................................................... 49 8.2 Underlying Assumptions for Cost Benefit Analysis ................................................................ 49 8.3 Cost Estimation .............................................................................................................. 50 8.4 Benefit Estimation .......................................................................................................... 50 8.5 Results of Cost Benefit Analysis ........................................................................................ 50 9. CONCLUSION ........................................................................................................................ 51 9.1 Biomass Energy Situation ................................................................................................ 51 9.2 Current Cooking and Lighting Energy Supply Options ........................................................... 51 9.3 Potential Demand for ICS, Biogas and Solar PV products and services .................................... 51 9.4 Existence of Enterprises for Energy Related Businesses ........................................................ 52 9.5 Environment for ICS, biogas and solar PV
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