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The workshop in Arusha explored the East African/Tanzanian environment for village energy, local case studies, challenges and opportunities, with a view to formulating policy recommendations for policymakers, funders, NGOs and other stakeholders the region. An important part of the workshop, and indeed the whole Smart Villages initiative work programme, was to gather evidence from existing projects that have provided or facilitated sustainable off-grid energy solutions in the developing world.The workshop gathered more than 50 experts, including policymakers, NGOs, off-grid energy entrepreneurs and others to look for solutions to providing energy to villages off the grid.
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Changing rural economies in Tanzania following small-‐scale electrifica7on
Opportuni7es and challenges coming with hydropower development in
farmer communi7es: The Mawengi hydropower scheme
Helene Ahlborg & Sverker Molander Energy & Environment, Chalmers University of Technology
Gothenburg, Sweden
Guiseppe Buscaglia & Alice Michelazzi* ACRA-‐CCS Tanzania
*Former ACRA-‐CCS staff Dar es Salaam & Njombe, Tanzania
Workshop on Smart Villages, Arusha 2-‐5 June 2014
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Case studies • 2010: Drivers and barriers to rural electrifica7on in Tanzania
and Mozambique • 2011: Pilot Energy Service Pla[orms and micro-‐grid in
Leguruki village, Arusha • 2012: ;icro-‐hydro in the Southern Highlands: Itete hospital
and Mawengi hydropower scheme • 2013: In-‐depth study of Mawengi hydropower scheme • 2013: Rural market forma7on at the Base of the Pyramid – a
study of rural entrepreneurs along two value chains in Njombe region
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The Mawengi hydropower scheme
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Project loca7on
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Project Area -‐ Popula7on: ≈20.000
-‐ Rainfall: average 1100 mm/year; -‐ unimodal (November – April)
-‐ Catchment area: 41.8 km2
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-‐ High poten7al micro-‐hydro genera7on
-‐ Produc7on poten7al 1st jump (79m): 150+150kW 2nd jump (45m): 150kW
-‐ Kisongo River flow min 600m3/s – max 2,500m3/s average es. 800 m3/s
Kisongo Water Catchment Lihata Falls – Mawengi Village
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Feasibility Study (2005) Project phase 1 (2006 – 2010) Project phase 2 (2010-‐2014)
ACRA-‐CCS interven7on aner invita7on from Catholic Church of Njombe
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-‐ Construc7on of the micro hydro plant (150kW)
Sta7c weir (run off type) made of steel reinforced concrete of a length of 13.90 m and 4 m high
Sand collector (covered channel); length 20 m, 2m wide and 2.5 m high Buoerfly valve diameter 700 mm
Pond ≈2000m3
The intake
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The pen stock
An Horizontal 700 mm diameter steel pipe (90 m length)
A penstock 500 mm diameter steel pipe, 120 m length
Net jump: 79 m
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The Power house and turbine
Francis Turbine horizontal axis
Nominal Power of the turbine: 168 kW Real Output: 150kW
Rota7on speed: 1,500 RPM
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-‐ Ini7al connec7on of 260 users: 222 households, 30 commercial and 6 produc7ve enterprises and 2 public services
with community contribu7on
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-‐ Commissioning of the plant and start of the service (June 2010)
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Sustainability Issues Phase 1
-‐ LUMAMA capaci7es too low to manage the service efficiently and independently
-‐ LUMAMA revenues not sufficient to cover O&M and deprecia7on costs (20% O&M)
-‐ Low consump7on of electricity for produc7ve uses (<30%)
-‐ Villages in the catchment area not connected to the grid; no direct incen7ve for environmental conserva7on
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1 -‐ Electrifica7on Infrastructure connec7ons 2014: 1,200
Exp consump7on: average 150kW min 40kW -‐ max 260kW Total transformers: 26
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Ownership by a local NGO: LUMAMA
-‐ A great emphasis on capacity building -‐ Local staff only -‐ ACRA-‐CCS as advisors -‐ Advisory board members from Njombe Diocese and
Ludewa District -‐ 1600 members elect the representa7ves for
-‐ Transformer groups -‐ Zone -‐ General Assembly -‐ Board
-‐ The cons7tu7on guarantees stability -‐ All capital investments were donor funded
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Integrated development: doing more than electricity
• Sustainable agriculture and forestry components
• Business training and support • Technical and managerial training • Educa7onal component • Land use planning • Water conserva7on
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Study on societal dynamics following electrifica7on
• Qualita7ve method: • 1 week in 2012, 3 months in 2013 • About 100 Interviews: – With ACRA-‐CCS staff – LUMAMA staff – villagers downstream and upstream – District, ward and village authori7es – Qualita7ve Survey on gender, land rights, economic behavior of households
• Group discussions, gender training workshop, much informal interac7on, observa7ons
• Workshop with LUMAMA and ACRA-‐CCS April 2014
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Economic challenges in small-‐scale electrifica7on
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The economic situa7on of LUMAMA
• Incomes from sales of electricity only • Now about 1200 users and monthly earnings around 8 million tsh (O&M 5 million)
• Business plan to cover opera7on cost, save monthly for technical assistance, reinvestments and unexpected repair
• Now shining from flat tariffs to pre-‐paid system
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New$tariff$system$of$LUMAMA$(under$implementation$May$2014)
Category
Montly$service$fee$(TSH/m)
Electricity$charge$(TSH/kWh)
Approx.$no.
Approx.$typical$electricity$consumption$(kWh/connection*m)
Total$category$consumption$(kWh/m)
1 2#000 100 700 10 7#0002 2#000 130 350 25 8#7503 2#000 180 100 40 4#0004 5#000 250 17 500 8#5005 5#000 300 25 100 2#500
1#192 30#750
TOTALSLUMAMA$income$cat$1+2+3LUMAM$income$cat$4+5Total$LUMAMA$income
Total$LUMAMA$income$from$category$(TSH/m)
2#100#0001#837#500920#0002#210#000875#0007#942#500
4#857#5003#085#0007$942$500
Category 1, 2, 3 = households with increasing number of light points and appliances. Category 4 = milling machines. Category 5 = other businesses.
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Balancing the budget
• Pre-‐paid system will increase the seasonality of LUMAMA incomes
• Tariffs to be reviewed in some months • Milling machines provide crucial incomes • Produc7ve use compara7vely high • Machinery was donated in the business program, but also private investments are being made
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Values of local par7cipa7on
• Protec7on of infrastructure: – damage costs carried by individuals responsible – Voluntary agreements on load management
• Collabora7on around the common resource • Capacity building in the community • Trust between the community and LUMAMA • Preven7on of elite capture
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The perspec7ve of villagers
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Reasons for not paying the bill
• No cash 7me of the year • Family crisis lead to unexpected costs • Distance to the office • Not understanding the rules
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Barriers to connec7on
• Distance to the transformer • Low income – families with liole land and few members
• Vulnerable households: especially single mothers, orphans and grandparents where parents have died
• Fear of connec7ng related to rules of disconnec7on and risk of debt
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Perceived benefits
• Users perceive important benefits for the household and the community at large
• Non-‐connected households say they do not benefit
• Collec7ve services are appreciated but not seen as enough
• Light at home is the most appreciated benefit • Feelings of sadness and exclusion
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The income gap increases
Poverty is felt more strongly among people not connected as their neighbors become richer
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Sugges7ons from LUMAMA workshop 30 April 2014
• Business training for local SMEs and in schools • Educa7on on agricultural prac7ces • Need to diversify livelihoods • Development of local banks • LUMAMA need to diversify its own income and start income genera7ng ac7vi7es
• Increased no. of users and capacity of the plant
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Take home messages
• RE projects normally ignore what happens aner electricity is introduced
• But, we need to understand how available services translate into impact
• It requires investments in people’s abili7es to use electricity produc7vely
• Get to know the rural entrepreneur in his/her context and value chain
• Iden7fy produc7ve uses, needs and market poten7als ! iden7fy a suitable energy source
• Business models need to cater for seasonality!
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Key lessons at na7onal level
Dar es Salaam workshop 6 May 2014 at REA office • community ownership and responsibility are the main reason for posi7ve outcomes. It creates values beyond mere incomes for LUMAMA.
• The protec7on of infrastructure and management of loads are of economic value and should be replicated.
• Need for PPCP’s – Private – Public – Community Partnerships!
