MAS ALLA DE LOS CUATRO GRUPOS ALIMENTICIOS.

A survey was conducted with 11 of the major stakeholders in rural electrification projects, in order to map the general understanding among the range of stakeholders, regarding issues related to implementation of RETs on mini-grids in rural Tanzania. The survey included 23 statements representing potential barriers to RETs on mini-grids, identified from recent literature and pre-survey dialogue with stakeholders. The key findings extracted from the survey results and semi-structured stakeholder interviews are outlined in the following sections (9.3.1 through 9.3.4). Full survey results are illustrated in figure 42, while survey outline and participant scheme are attached in appendix D.

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The primary barriers to RETs (as viewed by a selection of stakeholders within RE development) on mini-grids identified by the survey are listed below:

9.3.1 Technical maturity of RET for mini-grids and security of supply

The survey and interviews indicates a general understanding amongst stakeholders that RETs can provide the same security of supply as diesel. It is widely accepted that RETs are ripe for a permanent switch on mini-grids. All interviews also indicate that stakeholders tend to suggest pure RET systems, not hybrids. The main argumentation states that hybrids will introduce the issues of unstable fuel supply, which according to Tanesco Thermal is the primary cause of load shedding and frequent power outages on their entire portfolio of diesel-based mini-grids. Tanesco Thermal also states that they are experiencing issues related to renewing spare part contracts, as several of their generators are relatively old. Conventional spare parts decreasing in availability (domestic or international) or in some instances running out of production, forces operators to utilize lower quality equipment or improvise when maintaining gensets. This fact introduces significant cost increase and reduces stability of power supply. [7] [45]

9.3.2 RET planning and project development capacity

Inadequate planning and implementation capacity of the leading institutions in rural electrification projects is introduced as a possible barrier by the survey. However, it is observed that the leading institutions themselves (REA and Tanesco) do not consider capacity to be insufficient. This is confirmed by IED consultants, which has been working closely with REA for six months. [26] The level of RET education amongst stakeholders is also a potential barrier according to the survey. The principal of the College of Technology at the university of Dar-es- Salaam states that the overall level of RET education in Tanzania is not sufficient for a massive off-grid RET development. According to the principal, awareness of renewable energy resources and how to utilize them is too low amongst all the major stakeholders. He believes that this fact slows down RET utilization on both off-grid and on-grid electrification projects. [45, 46]

9.3.3 RET equipment supply, installment and maintenance

The survey indicates that the supply chains of RETs are well mapped and accessible for project planners and developers. Several domestic entrepreneurs of solar PV, micro-hydro and biomass power systems are available, along with a number of international entrepreneurs. [37, 47] According to Tanesco, contractors for supply of full generation and distribution systems are readily available on the international marked for all the mentioned RETs. The challenge of accessibility is not construction of the power plant and the distribution system on the mini-grid, as stated in all interviews. However, as indicated by the survey, access to RET spare parts and skilled personnel in rural areas is low or non-existing. Engaging contractors for spare parts on any RET is not considered a barrier by any of the stakeholders, but it was pointed out that spare parts would mainly be provided by international contractors. As there is currently a very limited market for any of the RETs in Tanzania, all stakeholders viewed this as a barrier to RETs on

 Insufficient access to RET spare parts if needed in rural areas

 Insufficient access to skilled personnel to operate and maintain RETs in rural areas

 Insufficient available funding from REA to cover high CAPEX of RETs on mini-grids

 Uncertainty of income from rural mini-grids make it difficult to attract private investors

 Domestic and local governments await for future grid extension, as they believe it is more cost efficient than off-grid solutions

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mini-grids. Tanesco Thermal states that the main advantage of diesel on mini-grids is the high access to competence on diesel gensets throughout the country. [7] This statement is partially backed up by the survey results. [45]

9.3.4 Available funding and private investor engagement

The survey indicates that the primary barrier to RETs on mini-grids is high capital costs, this is especially true for solar PV. Although most stakeholders find RETs economically viable for mini- grids, the financial barriers of high risk and investment costs, causes most developers to require substantial capital funding to avoid undertaking extensive risk. However, TIB underlines that insufficient governmental funding needs not stop the development of such projects. TIB points out that affordability and willingness to pay for electricity in rural areas is higher than many developers expect and that the current demand for subsidies exceeds what is necessary for sustainable project development. According to TIB, the primary barrier for developers is attaining loans from domestic banks. Banks are currently very reluctant in lending to RET off- grid projects, and TIB states that this problem is mainly caused by project developers themselves. Project developers need to perform a more detailed assessment of expected consumption on the mini-grid, assessment of consumer ability to pay, more detailed technical plans on how to provide the service and they need to present credible business models for collecting payment. According to TIB this is the core problem facing developers of RET mini- grids. In addition, TIB states that greater efforts should be made in order to create awareness in the domestic banking sector of the sustainability in off-grid RET projects under the right conditions. According to TIB, many RET loan applications are refused due to a combination of poor technical and economical assessments by the project developers and little knowledge about RETs among lenders. [30, 45]

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10 Discussion