Contents. The National Climate Change Strategy. Introduction. The National Climate Change Strategy.. The National Climate Change Strategy..
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1 THE LOW CARBON DEVELOPMENT WORKSHOP JANUARY 2014 ENERGY SECTOR INITIATIVES IN TANZANIA Presented by John Lazimah Investment Business Unit - TANESCO 22 nd January 2014 at The Kunduchi Beach Hotel & Resort Dar es Salaam 1 Contents Introduction The National Climate Change Strategy Impacts of Climate Change Initiatives undertaken at National level (energy sector) Strategies of Climate Change adaptation and mitigation Current Power Situation Challenges/Constrains Future Power Demand and Investment Plan Conclusion 2 3 Introduction Vision Background To be an efficient and Tanzania Electric Supply commercially focused utility Company Limited is a parastatal supporting the development of organization under the Ministry Tanzania and to be a power of Energy and Minerals (MEM) house of East Africa. established in Mission The Company s core business To generate/purchase, transmit is Generation, Transmission and supply electricity in the and Distribution. most effective, competitive and sustainable manner possible. The Company also sales electricity to the mainland and bulk power supply to the Island of Zanzibar. Company Values Ethical Excellence Receptiveness The National Climate Change Strategy Presents an opportunity to address climate change adaptation and participate in the global effort to reduce GHG emissions in the context of sustainable development January The National Climate Change Strategy.. Reiterates Tanzania s commitment to address Climate Change (The country is amongst the highly vulnerable group of countries of climate change) The National Climate Change Strategy.. Improving the energy availability to reduce deforestation Improving energy diversification Improving energy efficiency 5 6 1
2 Impacts of Climate Change on Energy Sector Mtera Impacts of Climate Change - Before and after Drought have been affecting hydro generation Power rationing and blackouts (affecting individuals, industry and businesses activities and incomes) Increased energy costs (use of thermal power generation particularly diesel fuel) 7 8 Initiatives undertaken at National level (energy sector) Adoption of National environmental Policy (1997) The Energy Policy (2003) promotes environmental sound technologies Environmental Management Act (2004) guide to address CC impacts Clean Development Mechanism (CDM) Investor s guide (2004) and Handbook (2009) Strategies on CC Adaptation Energy Sector Drought l To enhance resilience of energy sector to climate change Promoting diversification of energy sources Development and utilization of community based off grids/mini-grids Promoting clean coal for energy generation Promoting and use of energy efficiency technologies Promoting co-generation 9 10 Strategies on CC Mitigation Energy Sector Playing the role of reducing the global emissions l To achieve SD through promotion of Low Carbon Technologies Enhancing use of Renewable energy in the Nation Grid and off-grid Enhancing power supply to rural areas Diversification of energy sources Promoting energy efficiency technologies Promoting green energy technologies, geothermal and clean coal Establishment of Environmental Management systems Current Power situation Generation The installed capacity in the main grid is MW. (hydro: (37.43%) and 939MW (62.57%) from thermal plants. Capacity of thermal plants (Gas: 501MW: Fuel Oil: MW) is mainly from IPP(...) Off-grid stations total capacity is 78.2 MW Highest grid system demand is recorded in November Transmission System : Transmission network comprises of 2732 km of system voltages 220kV; km of 132 kv; and km of 66 kv, totalling km by the end of November Distribution System : Comprises of 17,021 km of 33 kv lines, 5,375km of 11 kv lines, 34,513km of LV and 11,124 distribution transformers. 2
3 Current Power Situation.. Access to electricity Current electricity customers base is 1,151,467 Currently, the access stands at 21% Our plan is to increase access to 30% by year 2015 and 75% by 2025 Potentials Energy Sources for Energy Development ENERGY SOURCE POTENTIAL STATUS OF DEVELOPMENT Coal: Kiwira, Mchuchuma, Ngaka, Rukwa and around Lake Victoria Natural Gas: Songo songo and Mnazi Bay Geothermal: 58 sites including: Songwe (mbeya), Luhoi (Rufiji), Manyara, Lake Natron and Kisaki. 1.9 billion tones and 25% proven reserve 43.1 Tcf discovered reserve equivalent to 8 billion barrel of oil None 371 MW 650 MW of electricity None Hydro: Various sites 4.7GW of electricity 562 MW Solar: Several sites. Average daily solar About 6MW isolation of 4.6/kWh/ m Potentials Energy Sources for Energy Development.. ENERGY SOURCE POTENTIAL STATUS OF DEVELOPMENT Wind: Makambako, Singida, Litembe(Mtwara), Mkumbara (Tanga), Gomvu (Dar), Karatu (Manyara) and Mafia Biomass: woodfuel and agricultural waste Average wind speed 5-8m/s Potential to generate 500MW None 35MW from bagasse and woody residue Priorities in Power Sector Development in Tanzania To utilize available indigenous fuels (Gas, Coal, and Renewable) for Sustainable Power Generation Promote energy efficiency in industries and households (e.g. Use of energy efficient compact bulbs) TANESCO Current and future power trend Growing Demand in Mining and Industrial loads Policies in investment promotion l Prompted considerable growth in mining (extraction) and industrial activities. Triggers current and future power needs as shown on the table below:
4 Table: Mining and Industrial loads Mine Capacity (MW) Location Expected Online Kabanga Nickel 32 Kagera 2016 Mibongo Gold 20 Kigoma 2016 Ntaka Hill Nickel 30 Lindi 2018 Dangote Cement plant 40 Mtwara 2015 Panda Hill Gold 5 Mbeya 2016 Buckreef Gold 8 Geita 2015 Geita Gold 30 Geita 2015 Mchuchuma Iron Smelter 100 Iringa 2018 Golden Ridge - Gold 7 Shinyanga 2015 Dutwa Nickel 10 Shinyanga 2015 Mining and industrial loads... Bulyanhulu Gold 20 Shinyanga 2013 Textile Mill 30 Shinyanga 2014 Williamson Diamond 10 Shinyanga 2013 Williamson Diamond 12 Shinyanga 2014 Williamson Diamond 3 Shinyanga 2015 Liquidified Natural Gas Power plant(lng) 100 Mtwara Mining and industrial loads... Expansion of Makonde Plateau Water Supply and Sanitation Authority 6 Mtwara 2017 Ikwiriri Sugar factory 4 Lindi 2014 Mtwara Fertilizer Factory 30 Mtwara 2017 Dawasa- Ruvu pumping Expansion 12 Coast 2015 Hong Yu Steel (T) Ltd Expansion 34 Coast 2015 Eagle Cement Co. Ltd 20 Coast 2015 Investment Plan Based on the Power System Master Plan that covers both short term and long term investment plans The long term goal is to have affordable power to every citizen of Tanzania so as to reduce poverty as per MKUKUTA II (NSGRP) Short Term Investment Plan The Government through TANESCO is implementing the short term investment plan under the Big Result Now (BRN) Initiative. The initiative covers generation, transmission, distribution and initiative projects Short Term Investment Plan... Generation Plans YEAR Project Addition Type MW 2013 Mwanza HFO Singida Geo Wind Wind Kinyerezi I Gas Kinyerezi III & IV Gas Kilwa Energy Phase I Gas Kinyerezi II Gas Mtwara Gas
5 Short Term Investment Plan... Transmission Plans YEAR Project Addition Voltage Level (kv) Length (km) 2015 Singida - Arusha Bulyanhulu - Geita Somanga Fungu - Kinyerezi Makambako - Songea Iringa Shinyanga (Backbone) Dar- Arusha (NEG) Chalinze - Dodoma North West Grid Phase I (Mbeya Sumbawanga) Short Term Investment Plan... Distribution Projects and Initiatives YEAR Project/Initiative Electricity V ORIO project in Ngara, Biharamulo and Mpanda districts TEDAP Improving the reliability of Electric power supply in the city of Dar es Salaam Attending pending and new applications for customer connections Demand Side Management Initiative Sustainable Water Management Initiative Long Term Plan Under this plan, both generation and transmission projects are ranked in least cost order and interested investor are invited to venture Long Term Plan... Cont. Long Term Generation Projects Type Addition MW Kakono Hydro 53 Malagarasi Hydro 45 Rusumo Hydro 27 Masigira Hydro 118 Mtwara Gas 600 Ruhudji Hydro Project Hydro 358 Rumakali Project Hydro 222 Stieglers Gorge Hydro 1,200 Ngaka Coal Project Coal Long Term Plan... Cont Long Term Plans cont. Long Term Generation Projects Type Addition MW Mchuchuma Coal 400 Shinyanga/Dodoma Solar 160 Songwe Hydro 27 Singida Wind 160 Long Term Transmission Projects Distance (km) 220kV Kiwira Mbeya kV Kasama (Zambia) - Mbeya Iringa kV Shinyanga Mwanza kV Geita Nyakanazi Rusumo kv Kihansi -Ruhudji Mufindi kV Ngaka Makambako kV Somanga Lindi - Mtwara kV Mtwara - Songea kV Nyakanazi Kigoma - Sumbawanga kV Mchuchuma - Mufindi kV Rumakali Makambako
6 Future Grid Map by 2035 Challenges/Constrains of Power Sector in Tanzania Poor hydrology due to climate change High energy losses from aging transmission and distribution system Insufficient gas supply Financial constraints for electrification, additional generation and grid network expansion projects Rapid power demand growth against investment Vandalism of transmission and distribution infrastructure Reliance on expensive Emergency Power Plants (EPPs) High investment cost of renewable energy technologies 32 Conclusion TANESCO has been a victim of climate change and is a player in the national strategy on climate change Complies with EMA (2004), Energy policy (2003) and Environmental policy Adapted to energy mix (hydro, gas, geothermal, solar, wind and coal) to avoid vulnerability to climate change In collaboration with Rural Energy Agency has promoted rural electrification using on grid and off grid Cost of clean technologies hampers rapid expansion and use of low carbon technologies. TANESCO s and Energy sector success is and will be contributed by among others Public Funding as well as support of the Private Investors under PPP and IPP Ahsante Thanks January
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