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3 Scaling up the Development of Small Hydropower in Tanzania

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3 Scaling up the Development of Small Hydropower in Tanzania Public Disclosure Authorized Small Hydro Resource Mapping in Tanzania PHASE 1 REPORT April 2015 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized This report was prepared by SHER Ingénieurs-Conseils s.a. in association with Mhylab, under contract to The World Bank. It is one of several outputs from the small hydro Renewable Energy Resource Mapping and Geospatial Planning Tanzania ]. This activity is funded and supported by the Energy Sector Management Assistance Program (ESMAP), a multi-donor trust fund administered by The World Bank, under a global initiative on Renewable Energy Resource Mapping. Further details on the initiative can be obtained from the ESMAP website. This document is an interim output from the above-mentioned project. Users are strongly advised to exercise caution when utilizing the information and data contained, as this has not been subject to full peer review. The final, validated, peer reviewed output from this project will be a Tanzania Small Hydro Atlas, which will be published once the project is completed. Copyright © 2015 International Bank for Reconstruction and Development / THE WORLD BANK Washington DC 20433 Telephone: +1-202-473-1000 Internet: www.worldbank.org This work is a product of the consultants listed, and not of World Bank staff. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work and accept no responsibility for any consequence of their use. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for non-commercial purposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: +1-202-522-2625; e-mail: [email protected]. Furthermore, the ESMAP Program Manager would appreciate receiving a copy of the publication that uses this publication for its source sent in care of the address above, or to [email protected]. 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: Julien LEFEVERE Référence 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 - Final Pierre SMITS Quentin GOOR SHER INGÉNIEURS-CONSEILS S.A. IS ISO 9001 CERTIFIED SHER s.a. in association with Mhylab Small hydro mapping report - April 2015 Page 3 of 181 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 Programme 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 Mégawatt 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 Programme WB The World Bank WBO Water Basin Office ZECO Zanzibar Electricity Company Limited SHER s.a. in association with Mhylab Small hydro mapping report - April 2015 Page 4 of 181 Small Hydro Tanzania REA / The World Bank Contract n°7169139 Table of Content 1 INTRODUCTION................................................................................................................................................. 12 1.1 BACKGROUND OF THE PROJECT ESMAP - FWC ......................................................................................................... 12 1.2 OBJECTIVE OF THE STUDY ....................................................................................................................................... 12 1.3 OBJECTIVE OF THE REPORT - SMALL HYDRO MAPPING ................................................................................................. 12 1.4 GENERAL PROGRESS AND CHALLENGES ...................................................................................................................... 13 2 TANZANIAN ELECTRICAL CONTEXT .................................................................................................................... 14 2.1 INSTITUTIONAL FRAMEWORK .................................................................................................................................. 14 2.1.1 Actors .......................................................................................................................................................... 14 2.1.2 Specifics of the Tanzania Institutional and Legal Framework ..................................................................... 18 2.1.3 Electric Sector Reform Strategy and Roadmap ........................................................................................... 19 2.2 ACCESS TO ELECTRICITY AND ELECTRICAL SITUATION .................................................................................................... 21 2.2.1 Electricity Demand ...................................................................................................................................... 21 2.2.2 Access Rate (%) and Demand Forecast........................................................................................................ 22 2.3 POWER GENERATION - CURRENT AND PROJECTED SITUATION ........................................................................................ 22 2.4 FINANCIAL SITUATION AND FINANCING REQUIREMENTS ............................................................................................... 23 2.5 RENEWABLE AND RURAL ENERGY ............................................................................................................................. 24 2.6 OTHER RENEWABLE ENERGY SOURCES ....................................................................................................................... 24 3 SCALING UP THE DEVELOPMENT OF SMALL HYDROPOWER IN TANZANIA ........................................................ 28 3.1 CHALLENGES FOR DEVELOPING THE SMALL HYDRO IN TANZANIA .................................................................................... 28 3.2 STRENGTHS AND WEAKNESSES OF SMALL HYDROPOWER DEVELOPMENT ........................................................................... 29 3.3 PRIORITY DEVELOPMENT ZONES ............................................................................................................................... 32 3.4 SMALL HYDROPOWER DEVELOPMENT: AN OPPORTUNITY FOR TANZANIA .......................................................................... 34 3.5 PROGRAMS SUPPORTING THE SMALL HYDRO DEVELOPMENT ......................................................................................... 37 3.5.1 Tanzania Energy Development and Access Expansion project (TEDAP) ...................................................... 37 3.5.2 Scaling-up Renewable Energy Program (SREP) ........................................................................................... 37 3.5.3 Integrated Rural Electrification Planning (IREP) .......................................................................................... 38 3.5.4 Mini-grids based on small hydropower sources to augment rural electrification in Tanzania - UNIDO ..... 38 3.5.5 ESME - Supporting Energy SMEs in sub-Saharan Africa - GVEP .................................................................. 39 3.5.6 Rural Electrification Master Plan and Investment Prospectus - NORAD ..................................................... 39 3.5.7 Possible future funding for rural electrification and small hydropower ...................................................... 39 3.6 LESSONS LEARNT FROM PROJECTS SIMILAR TO SMALL HYDROPOWER ..............................................................................
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