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dam-l Tanzania encourages renewables/LS
>7. Tanzania opens door to potential investors in renewable energy
>
>The East African (Kenya),нннн 14. June 1999
>
>By Zephania Ubwani
>
>Dar-es-Salaam - Investors interested in developing Tanzania's vast renewable
>energy resources will benefit from financial incentives from the government.
>The country has also simplified procedures for investing in solar, wind and
>micro-hydropower projects, government officials announced in Arusha last
>week
>
>The incentives include a 100 per cent depreciation allowance in the first
>year of operation, exemption from excise duty and sales tax and
>concessionary Customs duty on the import of material and components used in
>renewable energy projects. The package is contained in a policy framework
>paper on renewable energy presented at a meeting of energy experts from
>Tanzania, Kenya and Uganda.
>
>Presenting the document, an acting Assistant Commissioner in the Ministry of
>Energy and Minerals, Mr. Ngosi C.X. Mwihava, said the government would also
>consider providing subsidies or loans from its energy fund.
>
>Experts say wind energy generation, although still unattractive to potential
>investors due to lack of reliable wind data, could be achieved through wind
>parks connected to a local grid, which could serve individual households.
>
>In order to speed up rural electrification, the government is planning to
>enact a law compelling independent power producers to generate at least five
>per cent of their electricity from renewable energy sources.
>
>Mr. Mwihava told The EastAfrican that the proposed Act would enable
>renewable energy to be mobilised to compete with other forms of energy which
>were not afford able to the poor rural communities or not viable in remote
>areas.
>
>Tanzania has the capacity to produce 4,700 MW of hydropower, but only 380 MW
>is being produced currently. It generates 150 MW of thermal electricity,
>close to its installed capacity of 155 MW.
>
>The standing stock of biomass wood is 1.8 billion cubic metres, while annual
>consumption is 40 million cubic metres. The solar energy potential has not
>been sufficiently exploited due to high start- up costs.
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Lori Pottinger, Director, Southern Africa Program,
and Editor, World Rivers Review
International Rivers Network
1847 Berkeley Way, Berkeley, California 94703, USA
Tel. (510) 848 1155 Fax (510) 848 1008
http://www.irn.org
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