BARRIERS AND OPPORTUNITIES TO TECHNOLOGY TRANSFER “A CASE OF BARRIERS TO SOLAR PV TECHNOLOGY TRANSFER IN MWANZA, TANZANIA” Workshop on enabling environments for technology transfer, 9-10 April, 2003, Ghent, Belgium THE K.F. MANYIKA, DIVISION OF ENVIRONMENT, VICE PRESIDENT’S OFFICE, P.O. Box 5380 DAR ES SALAAM TANZANIA Emails: Freddy_Manyika@yahoo.com kmanyika@vpdoe.go.tz

Organization of the presentation 1. Introduction 2. Identification of barriers 3. Types of Identified Barriers 3. Proposed Means of removing barriers 4. Conclusion/recommendation

INTRODUCTION Tanzania has a population of about 34.56 millions Less than 10% of the population has access to grid electricity services. About 75% of the population live in rural areas with only 1% having access to electricity services (i.e.99% of the population in rural areas has no access to electricity)

INTRODUCTION (Contd..) Grid electrification in TZ is undertaken by the Ministry of Energy and Minerals through TANESCO. Tanesco is under restructuring towards privatization in 2004 Privatization of TANESCO might further slow down the rural electrification plans

INTRODUCTION (Contd..) Most rural people use kerosene lamps for lighting Kerosene use in the rural areas ranges from 60-120 litres per household/ year Substitution of kerosene use with electricity would reduce between 130 to 267 kg of CO2 per solar home system per year

INTRODUCTION (Contd..) Solar PV technology is a financially and economically viable option for off-grid electrification in Tanzania Mwanza region has an average solar regime of about 5.5 kWh/m2/day Introduction of solar PV systems in Mwanza will eliminate about 2.5 million litres of kerosene used annually

INTRODUCTION (Contd..) Solar PV installation rate is very low (Only 0.5MWp has been installed in Tanzania, out of 40 MWp solar installed in developing countries). There are practical barriers to effective deployment and diffusion of Solar PV Technologies in Tanzania

IDENTIFICATION OF BARRIERS Different initiatives (Government /donor ) has been undertaken to promote use of solar PV technology in Tanzania. In Feb.2001, a PDF-B project on Solar PV Market Transformation in Tanzania was approved by GEF The objectives of the project were:- review the status of the rural market for PV technology

IDENTIFICATION OF BARRIERS (contd..) Identify barriers so as to boost PV market, especially in rural communities located off-grid A survey was undertaken through PRA to identify the issues that pose barriers to PV solar penetration in Mwanza, Tanzania.

IDENTIFIED BARRIERS Barrier Degree of importance Limited awareness of, and experience with PV technology and 12 VDC appliances. Energy is a low priority area among users Major barrier Inadequate business knowledge and capacity for distribution Limited technical knowledge of proper sizing, installation, operation and maintenance

IDENTIFIED BARRIERS (contd..):- High cost of solar systems, initial capital investment and operation and maintenance Major barrier Low purchasing power of the rural people Lack of established dealer network Secondary barrier Lack of solar PV standards and poor/inappropriate installation Inadequate Policy implementation Difficult access to finance for suppliers(impoters , dealers, etc.) Difficult access to finance for end users

Proposed Means of removing barriers Increase understanding of solar PV technology to the large community (via TV/radio programs, personal networks, performing arts, demonstrations and exhibitions) Link Solar PV distribution network with other existing distribution networks, e.g. Petrol station, rural MFI etc

Proposed Means of removing barriers(contd..) Build business knowledge and capacity for Distribution of solar PV systems (training, promotion, trade fair, etc.) Reduce tax (e.g. VAT) and import duty Stimulate local manufacturing of components and assembling

Proposed Means of removing barriers (contd..) Link installation of PV systems with poverty alleviation projects Subsidize promotion of solar technology by linking it with the social sectors

Proposed Means of removing barriers (contd..) Encourage financiers to advertise and disseminate information on opportunities of Solar PV financing so as to raise awareness of existing financing opportunities Develop policy implementation strategies

Proposed Means of removing barriers (contd..) Formulate/revise policies to support solar PV Enact appropriate legislation on solar PV systems Develop and enforce standards on solar PV systems

CONCLUSION/RECOMMENDATIONS GOVERNMENT SUPPORT IS A KEY COMPONENT TOWARDS CREATION OF ENABLING ENVIRONMENTS FOR ANY SUCCESSFUL TECHNOLOGY TRANSFER TECHNOLOGY TRANSFER IN DEVELOPING COUNTRIES NEEDS SPECIAL FINACIAL SUPPORT

THE END -THANK YOU-