BUSINESS PLANS THAT WORK Focusing on Grid Solutions Presented by: - PowerPoint PPT Presentation

TANZANIA ELECTRIC SUPPLY COMPANY LTD (TANESCO) FINANCING INITIATIVES AND BUSINESS PLANS THAT WORK Focusing on Grid Solutions Presented by: ENG. DECKLAN MHAIKI DEPUTY MANAGING DIRECTOR INVESTMENT (TANESCO-DMDI)

CONTENTS  Tanzania at a Glance  Electricity Sector & Resources  Sustainable Energy Agenda  Generation & Network Expansion Programs  Renewable Energy Development  Financing Initiatives  Conclusion 12/12/2016 2

TANZANIA AT A GLANCE Main Figures  Area 947,300sqm  Population 49.25million (2013)  GDP 48.6bn USD (2015)  GDP per capita 842 USD (2015)  Consumption per capita 100kWh 12/12/2016 3

ELECTRICITY SECTOR (Key stakeholders) Ministry of Energy & Minerals EWURA TPDC Board of Directors REA Generation Transmission Imports IPPs Distribution Customers 4

LEGAL FRAMEWORK GOVERNING THE SECTOR Electricity & Gas: • National Energy Policy 2015 • Electricity Act, 2008 • Natural Gas Policy, 2013 • Natural Gas Act (under preparation) • National Gas Utilization Master Plan (under prep). • EWURA Act of 2001, • REA Act of 2005 and Cross-cutting Legislations • Occupational Safety and Health Act, 2003 • Environmental Management Act, 2004 • Income Tax Act, 2004 • Public-Private-Partnership Act, 2010 12/12/2016 5

ENERGY RESOURCES HYDRO – 4.7GW (12% Developed)  COAL – 1.9 Bn tons (0% developed)  12/12/2016 6

NATURAL GAS DISCOVERIES Deep Sea : 47.08 TCF Mkuranga 2007 (0.2 TCF) Kiliwani 2008 (0.07 TCF) Songo Songo 1974 (2.5 TCF) Mnazi Bay 1982 (5 TCF) Ntorya 2012 ( 0.178 TCF) Total GIIP Onshore = 10.17 TCF TOTAL GIIP : 57.25 TCF (Developed - 607MW) 12/12/2016

GEOTHERMAL POTENTIAL  58 sites – 5,000MW ( none developed ) 12/12/2016 8

SOLAR POTENTIAL – DEVELOPED SOLAR MAP  Tanzania is among the 2°0'0"N 30°0'0"E 32°0'0"E 34°0'0"E 36°0'0"E 38°0'0"E 40°0'0"E ± countries with high solar 0°0'0" radiation. 2°0'0"S  Daily solar insolation – 4.21 – 6.13 kWh/m2/day 4°0'0"S  Annual insolation – 1,538 – 6°0'0"S 2,242 kWh/m2/yr 8°0'0"S  Central zone and part of southern and Lake Zone are 10°0'0"S dominating. Legend Legend Solar radiation 12°0'0"S (kWh/m2/day) High : 6.13 Low : 4.22 14°0'0"S Coordinate System: GCS WGS 1984 0 40 80 160 240 320 Datum: WGS 1984 Kilometers Units: Degree 30°0'0"E 32°0'0"E 34°0'0"E 36°0'0"E 38°0'0"E 40°0'0"E 12/12/2016 9

ELECTRICITY SECTOR Main figures by October, 2016 Generation grid installed capacity 1,357.69MW  - Hydro 41.7% - Natural gas 44.7% - Oil 12.8% - Biomas 0.8% Installed Capacity by Ownership  Tanesco own 1,049.40MW – 77.3% IPPs own 308.29MW – 22.7% Transmission Lines 6,167.0km  Distribution Lines 33 & 11kV 32,324.0km  Distribution Lines 0.4/0.23kV 101,900.0km  System Frequency 50Hz, ± 2.5%  Maximum Demand 1,041.63  Access to electricity 40% (March 2016)  Number of customers 1,973,754  12/12/2016 10

SUSTAINABLE ENERGY AGENDA In Line With SDG 7 Tanzania has Developed the National Development Vision 2025 with the Following Main Objective:  Transform the Country Into a Middle Income by 2050.  Increase Generation Capacity to 10000MW by 2025  Increase Access to 75% by 2025 12/12/2016 11

SUSTAINABLE ENERGY AGENDA - NATIONAL DEVELOPMENT VISION National Development Vision 2025 has the Following Main Objective:  Transform the Country Into a Middle Income by 2025.  Increase Generation Capacity to 10000MW by 2025  Increase Access to 75% by 2025  Strengthening the national grid in terms of generation and transmission capacity is the main agenda 12/12/2016 12

GENERATION CAPACITY EXPANSION PROGRAMME The short and Medium Term plan is to increase generation capacity to 5,000MW and a huge potential of natural gas which is available locally as a source of power generation will enable to achieve this target by 2020 including: • Kinyerezi I Extension 185MW under construction - expected to be online by 2018. • Kinyerezi II 240MW natural gas fired power plant with financing from Japan and GOT under construction - expected to be online by 2018. • 300MW natural gas fired plant proposed to be financed by JICA and GOT and it is at the appraisal stage. Planned to be ready by 2020. • Ongoing negotiation with various developers: 300MW (coal), 100MW (wind), Solar PV (55MW), 850 MW (natural gas) and 70MW (Hydro) – All these plant to be online by 2020. 12/12/2016 13

GENERATION CAPACITY EXPANSION PROGRAMME…… Long-term View: • Competitive procurement of generation projects for all technologies i.e. natural gas, coal, wind, hydro and Solar. 12/12/2016 14

NETWORK EXPANSION PROGRAMME Network Expansion Involves:  Grid Extensions  Distribution Expansion and Rural Electrification 12/12/2016 15

GRID EXTENSION: Backbone / ZTK Transmission Line Under Construction  Tanzania is the hub of EAPP and SAPP and important for power interconnection.  The new 400kV Backbone line will connect the South and south west of Tanzania to the load centers in the North.  Iringa - Shinyanga to be ready by end of 2016 and Singida – Arusha – Namanga Kenya will be ready by end of 2018.  The ZTK interconnector will link the Southern and Eastern Power Pools and enable will power Backbone will be a part of the planned ZTK line trading.

GRID EXTENSION……. Cont.  North – West 400kV T/L (1,148km) from Mbeya – Sumbawanga – Mpanda – Kigoma – Nyakanazi is under review of feasibility study from 220kV to 400kV.  220kV Bulyanhulu – Geita – Nyakanazi (188km) is under construction and expected to be completed in 2018.  North – East 400kV T/L (664km) from Dar – Chalinze – Segera – Arusha. Financing has been finalized and planned to commence construction early 2017 and completed in 2019.  220kV T/L Makambako – Songea (250km) is under construction and expected to be completed in 2018.  400kV T/L Somanga – Kinyerezi (198km). Compensation to the PAPs Contract negotiation with the Consultant for supervision of the project is ongoing.  400kV T/L Chalinze – Dodoma (350km). Feasibility study is at the final stage of completion. 12/12/2016 17

FUTURE GRID MAP BY 2033 18

CUSTOMER BASE AND CONNECTION RATE Efforts towards universal access to modern energy involves connecting more customers through National Grid and Mini- grids.  The current customer base is about 1.9 million.  Annual connection rate stands at 250,000 customers.  Access/ Connectivity; All regional headquarters in Tanzania and (99%) of district headquarters have electricity. Currently the connectivity level stands at 33% and access level at 40%. Our target is to increase electricity connectivity level to 75% by 2025. 12/12/2016 19

12/12/2016 100%� 120%� 20%� 40%� 60%� 80%� STATUS OF ACCESS PER REGION 0%� Arusha� Dar� es� salaam� Dodoma� Geita� Iringa� Kagera� Katavi� Kigoma� Kilimanjaro� Access� Lindi� Manyara� Rates� Mara� Mbeya� per� Morogoro� %� Region� of� Mtwara� Non� -� Mwanza� Electrified� (March� Njombe� Villages� Pwani� 2016)� Rukwa� – � Ruvuma� AVR:� Shinyanga� 40%� Simiyu� Singida� Tabora� Tanga� 20

RURAL ELECTRIFICATION PROGRAMME  The Government of Tanzania through REA has set a target of providing electricity services to all villages in Tanzania by year 2021 through grid extension and off-grid renewable energy solutions.  Several initiatives have been developed and some of them are in various stages of implementation (i.e. Grid extension projects, Renewable energy projects, grid connected mini grids, off grid projects, etc .) 12/12/2016 21

EXTENT OF RURAL ELECTRIFICATION 12/12/2016 22

Renewable Energy Development The Government has established a Subsidiary Company for  development of Geothermal named Tanzania Geothermal Development Company. The Stability Study for integrating renewable energy sources  mainly wind farm and Solar PV plant into the national Grid have been conducted. The study provided Limit of the overall RE capacity to about:  - 385MW capacity at 1,250MW peak demand - 710 MW capacity at 2,500MW peak demand. Peak demand reached so far is 1026.48MW.

Financing Initiatives Financing initiatives in Tanzanian Power Sector include:  Rural electrification financing (REA):  Government Project Financing through TANESCO:  Generation projects: E.g. Kinyerezi I, IE, & II  Transmission projects: E.g. Feasibility study for Chalinze - Dodoma transmission line  Distribution projects: E.g. Construction of Dar es Salaam Distribution Control Centre  Development partners.  Project financing through Concessional and Commercial loans.

CONCLUSION  The Demand for Energy will continue to increase over the coming years.  With its vast and untapped energy resources Tanzania is an ideal place for clean and renewable energy solutions to ensure sustainability of the electricity sector.  However, more Financing initiatives are needed to ensure successful implementation of various business plans and programmes. 12/12/2016 25

THANK YOU 26