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Tanzanian Renewable Energy and energy Efficiency project to Sustain Poverty Alleviation (TREESPA)

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TreeSpa focuses on developing the rural wealth-creating sectors in Tanzania by introducing energy efficient technology with the help of “joint technology purchase” and electricity service agreements for their top prioritized modern energy services. The principle approach is relevant to most Sub-Saharan Africa and results and materials will therefore be communicated to other countries. The project includes: - designing aggregated purchasing schemes for energy efficient electrical equipment - designing electricity service agreements - business development support (businesses using energy) An important part of the project will be thematic workshops together with representatives from the Tanzanian energy sector and Tanzanian industrial organisations. Pilot projects will be developed in co-operation with Tanzanian partners.

Results

  • The project developed technical specifications for three types of energy efficient electrical equipment (motors, light bulbs and welding machines).
  • The project realised aggregated purchasing schemes of the selected electrical equipment.
  • The project seeked to identify potentials for new businesses based on the specified latest technologies and best practice available for electrical equipment.
  • The project demonstrated organizational options and financial agreements for energy service purchases.
  • The project findings, material and results were disseminated and communicated to other countries in Sub-Saharan Africa.
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Lessons learned

  • It is crucial that all involved parties understand the concept of aggregated purchasing, and it takes time. The project idea centred around identifying large groups of rural businesses demanding similar energy services, and help them find attractive and sustainable solutions through aggregated procurement of equipment together with vital financing mechanisms and other support activities.
  • Expectations are high on the tenderers ability and willingness to meet requirements on service, support and availability in rural Tanzania. It is also desired that suppliers of equipment co-operate in developing financial schemes in order to reach broad customer groups, for example in co-operation with existing financing institutions. Simple pay back periods for the selected technologies are short, paving the way for revolving funds or other financial solutions to be linked to the equipment.
  • Market estimates for the selected equipment have been carried out based on statistics and regional visits. It is estimated that the annual market in Tanzania is 8.5 million energy efficient light bulbs, 40 000 energy efficient motors and 2000 energy efficient arc welding machines. Awareness about energy efficiency: The general level of understanding about energy efficient equipment is very low in rural areas of Tanzania. A base line study has been carried out. Last updated: 08.07.2010
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Partners and coordinator

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Contact

ÅF-Process AB
Sweden
Contact point: 
Name: 
Monica Gullberg
Tel: 
0046-8-657 10 00

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In brief

Duration:
01/12/2006 to 30/11/2009
Contract number: 
EICOO/EIE/06/278/2006

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