GIZ MATA Bad Lauterberg, 06 July 2015 Mini Hydro Power (MHP) Worldwide Working Group Thematic Session: Exchange of Lessons Learnt amongst Programmes Presentation: GIZ SENERGY (Sustainable Energy Programme) Tanzania, Dr. Gerd-Henning Vogel

Small Hydro Power Plant (150 kW) Mawanga, Njombe Region, Tanzania Contents Scope & Current Conditions of SHP/MHP Development New Developments Construction, Maintenance & Repair, Perspectives Small Hydro Power Plant (150 kW) Mawanga, Njombe Region, Tanzania

Scope & Current Conditions of SHP/MHP Development Good SHP potential of approx. 2 GW country-wide (in process of more exact verification), but geo­graphically limited to areas with good rainfalls, especially in the southern, western and northern highlands Usually most competitive solution where resource base and corresponding demand exists Currently over 20 SHP/MHP mini-grids & isolated stations for commercial and institutional purposes operating (exact number of MHP not yet established), thereof 4 (7 MW) also feeding into TANESCO national or isolated grids and another 3 (17.7 MW) to be commissioned still in 2015 Well-established co-financing support from REA External funding support to date mainly by foreign multilateral and bilateral public organisations as well as a few NGOs (incl. FBOs) Still insufficient access to commercial funding sources (investors/investment funds, banks) in order to cope with equity and debt capital requirements Systems components to a considerable part to be imported, but initiatives to increase local produc­tion share (incl. turbines) upcoming

New Developments  Advisory and facilitating role for GIZ Increasing interest of local communities/cooperatives, NGOs, private developers, contractors and operating companies as well as a few foreign companies to invest in commercial SHP mini-grid pro­jects with significant up-scaling intentions in suitable areas with focus on Southern and Western highlands Fast increasing number of local initiatives, incl. communities and private companies, to date at least 17 more preparing to invest in private-owned SHP mini-grids (over 35 MW) (thereof 6 with 2.15 MW getting special technical & facilitation support by GIZ) and 3 more in private-owned SHP feeding into the national grid (16.7 MW) Discussion on and plans for public-private partnerships (involving local/district gov­ernments and the public utility Tanesco) to speed up SHP mini-grid deployment Small Hydro Power Development Centre established at College of Engineering & Technology at University of Dar es Salaam with support from UNESCO, also involved in project development promotion in cooperation with GIZ Current business model for GIZ-supported SHP/MHP mini-grids in Tanzania: independent ownership (private or NGO/CBO) with commercially viable operation Legal & regulatory basis of Small Power Plants (SPP) changing from application basis to tendering / competitive bidding, details still under discussion by EWURA  Advisory and facilitating role for GIZ

Construction, Maintenance & Repair, Perspectives Construction of Small, Mini and Micro Hydropower Plants Already strong involvement of local contractors in planning and construction Proposed upgrading of existing and planned private water mills for the supply of adja­cent rural communities, new projects often phase-wise planned (phase 1 for milling as productive income-generating use, phase 2 for village supply)  Advisory and facilitating role (incl. capacity development) for GIZ Setup of Maintenance and Repair Service Systems Gradually increasing consideration and coverage by investors, operation and installa­tion companies Outsourcing of many services to private local companies and technicians in progress  Awareness-creating, advisory and facilitating role for GIZ Perspectives In view of the competitiveness, the still large untapped potential as well as the rising interest of communities, developers and investors and the willingness to support on the government side, SHP will remain a strong RE source with very good perspect­ives for generation and supply through mini-grids in suitable areas Better coordination between stakeholders and stronger leadership of the involved Tanzanian government institutions still required, but willingness available and im­provements visible  At least medium-term advisory and facilitating role for GIZ