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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!
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