Public Disclosure Authorized Public Disclosure Authorized ACCELERATING MINI- GRID DEPLOYMENT IN SUB-SAHARAN AFRICA Lessons from Tanzania Public Disclosure Authorized LILY ODARNO, ESTOMIH SAWE, MARY SWAI, MANENO J.J. KATYEGA AND ALLISON LEE Public Disclosure Authorized WRI.ORG Accelerating Mini-Grid Deployment in Sub-Saharan Africa: Lessons from Tanzania i Design and layout by: Jenna Park
[email protected] TABLE OF CONTENTS 1 Foreword 3 Preface 5 Executive Summary 13 Introduction 19 Overview of Mini-Grids in Tanzania 39 The Institutional, Policy, and Regulatory Framework for Mini-Grids in Tanzania 53 Mini-Grid Ownership and Operational Models 65 Planning and Securing Financing for Mini-Grid Projects 79 How Are Mini-Grids Contributing to Rural Development? 83 Conclusions and Recommendations 86 Appendix A: People Interviewed for This Report 88 Appendix B: Small Power Producers That Signed Small Power Purchase Agreements and Submitted Letters of Intent 90 Appendix C: Policies, Strategies, Acts, Regulations, Technical Standards, and Programs, Plans, and Projects on Mini-Grids 94 Abbreviations 95 Glossary 96 Bibliography 99 Endnotes Accelerating Mini-Grid Deployment in Sub-Saharan Africa: Lessons from Tanzania iii iv WRI.org FOREWORD More than half of the 1 billion people in the world In Tanzania, a slow environmental clearance without electricity live in Sub-Saharan Africa, procedure delayed the deployment of some mini- and rapid population growth is projected to grids despite a streamlined regulatory process. outpace electric grid expansion. For communities across the region, a consistent and affordable Invest in both qualitative and quantitative ▪ supply of electricity can open new possibilities for assessments of the development impacts socioeconomic progress.