Energy Policy for Increased Access to Electrification in Tanzania: The Role of the Government and Private Sectors

Abstract

Tanzania is endowed with abundant natural fuel source potentials for power generation, which include coal about 1,200 million metric tons of which about 304 million metric tons have been proven to exist, natural gas discoveries amounting to about 33 trillion cubic feet as of June 2012, about 4.7GW hydropower, and renewable energies, including geothermal energy, of which above 650 MW has been indicated to be present in the country in limited studies, 187 W/m2 solar energy, and wind potential estimated to be within the range of 3-10 m/s. The country apart from having these abundant natural fuel sources, the countrys total electricity access as of December 2011 was 18.4%, 6.6% in rural areas and 11.8% in urban areas. The rural population is more greatly affected by the limited electricity access because more than 75% of the total population of the country resides in the rural areas. In addition, Tanzanias electricity access is lower than that of other developing countries, which have more than 90% electrification rates, such as Tunisia (100%), Egypt (100%), Libya (100%), Algeria (99%), Mauritius (99%), and Morocco (97%). The low rate of electricity access in Tanzania is among the major factors hindering the countrys socioeconomic development. Therefore, to boost the countrys socioeconomic development, appropriate electrification policies must be adopted by the government. The main purpose of this research was to determine the appropriate electrification policies that should be adopted by the Tanzanian government to increase the countrys electricity access, through an international comparison with developed and developing countries that have already achieved increased electricity access. The study provides policy recommendations to the Tanzanian government regarding the investment modalities that it can adopt in the power sector, the adoption of stand-alone generation to off-grid communities based on renewable fuel sources, grid extension to isolated provinces, national grid interconnection with the neighboring countries, diversification of fuel sources for power generation, the necessity of energy subsidy, and the establishment of a tariff structure that will make electricity affordable for the low-income households and that will promote energy conservation.

Student No.: 2011-22946 Technology Management, Economics, and Policy Program College of Engineering Seoul National University