Solar PV Market Development in Rural Areas of Tanzania
Sida/MEM solar PV project
General Overview
- Five years project, started in May 2005.
- Government Project under the Ministry of Energy and Minerals.
- Funded by the Swedish International Development and Cooperation Agency (Sida).
- Implemented on behalf of the Government of Tanzania by a UK based consultancy firm called "ESD - Energy for Sustainable Development".
- The project aims at developing Solar Photovoltaic (PV) markets in rural areas of Tanzania.
Project Description
The Sida/MEM Solar PV Project is a national project aimed at developing the market for solar photovoltaic technology. It is a bilateral initiative funded by the Swedish International Development Cooperation Agency (Sida) through the Government of Tanzania's Ministry of Energy and Minerals (MEM). It is being implemented by Energy for Sustainable Development (ESD), a UK-based consultancy specializing in renewable energies and climate change.
The project has four components.
The BDS component
This first component includes business development services (BDS) for solar PV companies including capacity building of local importers, suppliers, and dealers. Under this component the project is assisting solar PV product importers in developing networks of retailers in the regions and districts throughout the country. It also trains the retailers in solar PV product sales and marketing, system design and installation, bookkeeping and accounting and business planning.
Stimulation of the End-User Market through awareness raising
This second component involves conducting a national solar PV marketing and awareness campaign and conducting smaller targeted regional campaigns. Under the marketing component the project is also attempting to develop micro-finance for credit purchases of solar PV systems. features of this component involves awareness creation to the end users mainly on availability, affordability, and the workability of the technology in the Tanzanian rural setting.
Development of Tanzania Solar Network
The third project component involves supporting the development of the Tanzanian Solar Energy Association. This focuses on creating and strengthening a networking and industry association for all Solar PV stakeholders in the country. The association will be responsible for networking and providing the industry with data and information source for both local and international activities on Solar PV technology.
The Policy and Institutional Development
This fourth and final component aims at developing a system for enforcing solar PV quality standards through the Tanzanian Bureau of Standards. It also focuses of taxation issues and on dissemination and sharing of project findings among policy makers in various Ministries and awareness creation in higher levels of government.
Project Stakeholders
The project is adopting a commercial approach for the purpose of sustaining project initiated activities after project completion. Private sector participation is hence given a priority. However the project is working very closely to the following stakeholders:
- Solar PV importers and supply companies.
- Tanzania Solar Energy Association (TASEA).
- Other ongoing Solar PV and Renewable Energy Projects.
- Tanzania Bureau of Standards.
- Ministry of Energy and Minerals.
- Swedish International and Cooperation Agency (Sida).
- The National Micro-Finance Bank (NMB)
- Other Energy related NGO's.
- Local and International Consulting companies in Energy and Renewable Energy Sector.
- End users.
Project Methodologies
- Market assessment to establish the economic potentials in districts of the region under activity.
- Identifying key Hardware shop owners who can be trained to work as Solar PV dealers.
- Identifying key electrical technicians who can be trained to work as solar technicians and at the same time work as sales agents for recruited dealers.
- Organizing a workshop to present market assessment findings to Solar PV importers, suppliers, dealers, and technicians.
- Training dealers and Technicians on Solar PV product knowledge.
- Training Technicians on Solar PV system design, installation, repairs, and maintenance.
- Market promotions and awareness campaign to cover town, urbanized centers, and villages.
- Impact monitoring and follow up activities.
Project Activities
- Conducting market assessments in pilot project regions, namely Morogoro, Tanga, Coast, Kigoma, Rukwa, Mbeya, Mtwara and Dodoma.
- Work with Tanzania Bureau of Standards and other stakeholders to develop Solar PV standards.
- facilitate Solar PV Loan Product with financial and credit institutions
- Strengthen TASEA in networking, coordination and information dissemination capabilities.
- Conducting awareness creation on solar PV technology and services and on the available market opportunities.
Project Expectations
- Increased awareness on Solar PV technology to the rural population.
- Increased awareness on Solar PV technology to the Government and Private sector decision makers.
- Acceptability of the Solar PV technology to rural people and other associated beneficiaries.
- Availability of Solar PV products and trained Technicians at District level for regions where project activities will be conducted.
- Availability of a "Solar PV Loan Product" as one way of addressing the affordability barrier.
- Availability of Solar PV standards to monitor product quality and an associated enforcement protocol.
- Presence of a "Solar PV industry Association" to act as coordinator and centre of information.
- Increased use of Solar PV technology in Tanzania.
