Ngeleja: $18bn needed for power master plan

[Msharika]

Vice President Dr Ali Mohammed Shein addresses the 28th Southern African Power Pool Executive Conference in Dar yesterday. With him (from-R) are Energy and Minerals minister William Ngeleja and Tanesco acting managing director Stephen Mabada.

The government is mobilising about USD 18 billion to implement the country’s Power System Master Plan (PSMP) to curb chronic power rationing, Minister for Energy and Minerals William Ngeleja said yesterday.

In a keynote address in Dar es Salaam during the 28th Southern African Power Pool (SAPP) Executive Committee Meeting at which the Vice President Dr Ali Mohamed Shein, was the chief guest, the minister said the national power infrastructure has suffered from prolonged underinvestment, resulting into capacity and energy deficits.
“The power rationing of 2006 was instrumental in drawing a government funded emergency plan whose objective was short term generation to meet the demand in the national grid estimated to grow at an average rate of 12 percent per annum and to lessen dependence on hydro electricity by optimising thermal mix in the grid system” said Ngeleja.

The minister was speaking hardly after the giant power utility, Tanzania Electricity Supply Company (TANESCO) announced a nationwide power rationing from 6pm to 10pm.

He said the government is committed to increase private sector participation in the development of the sector.

He said the Rural Energy Act of 2005 spearheading the furtherance of rural electrification, the Electricity Act of 2008 supporting the implementation of the sector policy and the soon to be approved Power Sector Reform Strategy will enhance wider participation of the private sector.

According to the minister, Tanzania is eager to see the Zambia-Tanzania-Kenya power interconnector project materialising in order to benefit from power exchange. He said the support of all operating member states within SAPP was critical to help successful implementation of the project.

But Kigoma North Member of Parliament Zitto Kabwe in a telephone interview yesterday questioned the political will to implement PSMP.
“The Power System Master Plan is a good piece, but the problem lies with the implementation” said Kabwe.

He said despite doubling of the economy to 28 trillion/-, the nation faces a shortfall of 309 MW of power, adding that Dar es Salaam alone has a deficit of 200MW.

It is increasingly being realised that energy infrastructure development plays a catalytic role in socio-economic advance of every nation. The departure for African countries from economic poverty to long term sustainable growth is predicated on sufficient, reliable and affordable energy supply.

Southern Power Pool was established in August, 1995 at the Southern African Development Community (SADC) summit in South Africa during which member states (Excluding Mauritius) agreed to supply through coordination, reliable and economic electricity to its members.

Meanwhile, Dr Shein called on SADC member countries to ensure that its people have equitable access to electricity at affordable prices, so as to improve their standard of living.

“In some countries the access to electricity has hardly crossed double digits” said Dr Shein.

He said while the principle of affordable and competitive electricity prices have been recognized, there is need for SADC member countries to embrace the principle of cost reflective tariffs in the region.

The VP said that, there is need for adopting regulatory and institutional framework in respective countries which will enhance much needed investment in the electricity sector.

Southern African countries he added have a potential of generating more than 100,000 MW through the use of hydro, thermal, gas and coal sources.

The power demand in the SADC region is approximately 55,000MW, while actual production amounts to 48,649MW according to Dr. Shein.

The Vice President said he was pleased with the formation of Day Ahead Market (DAM) whereby electricity is traded to meet the shortfall in generation within SAPP member countries.

Earlier, Vice chairman of SAPP executive committee Pius Gumbi said the meeting would touch key issues such as interconnection, security and reliability of power through reduced supply costs.

He said he believed the region will have enough power for the World Cup scheduled for June 2010 in South Africa.


SOURCE: THE GUARDIAN

My comments: Is TANESCO collecting consumers money or it gives power for free? Where is the revenue collected banked or used for?

 

[Mzee Mwanakijiji]

Bayeti ya Tanzania kwa mwaka inakaribia dola bilioni 7 tu hivi!..

 

[The Boss]

Sasa mahitaji yapi ya umeme
yanazidi ukubwa wa uchumi karibu mara tatu??????
huyu Ngeleja kweli anajua anachokizungumza?????

 

[Mzee Mwanakijiji]

Kujenga stielger's Gorge ilikadiriwa kuwa kati ya bilioni 2 na tatu USD na ina uwezo wa kutoa umeme wa zaidi ya Megawatts 4000 (inazidi vyanzo vyote vya umeme combined karibu mara tatu)!

 

[The Boss]

Kujenga stielger's Gorge ilikadiriwa kuwa kati ya bilioni 2 na tatu USD na ina uwezo wa kutoa umeme wa zaidi ya Megawatts 4000 (inazidi vyanzo vyote vya umeme combined karibu mara tatu)!

niliwahi kusema huko nyuma
the worst is yet to come...
naona wanataka kuingia kwenye forbes rich list
by any means necessary.............

 

[Pape]

hivi kwanini mitambo ya IPTL haitengamai?

 

[Kiwalani]

In ‘Africa's Winds of Change: Memoirs of an International Tanzanian', the former Minister responsible for Energy, Al Noor Kassum, documents how we ended up at the mercy of Dowans. I take the liberty to say so because it is a documentary of how we forfeited, nay, suspended an initiative that could provide us with a total capacity of 2,100 MW, 21 times more than the 100 MW from Dowans.

That initiative is what came to be known as the Stiegler's Gorge Power Project. The gorge is located on the Rufiji River. According to Kassum, in 1979 they proposed to use it to generate electricity. To that end Halfslund/Norplan of Norway were consulted to prepare a feasibility study for the project.

It is this study, financed by the Norwegian government, that showed the said grand capacity then thus spaced over four phases: "At the end of Phase I (1990-95) the capacity would be 300 MW; at the end of Phase II (1995-2005) it would be 900 MW; at the end of Phases III and IV (2005-15) it would be 2,1000 MW. Thus, the capacity could be stepped up as demand increased over time. This would also spread the total cost over a longer period."

Interestingly, these consultants estimated that the investment cost for all these phases would be USD 1,382 million - a mere two times the cost of Dowans' plant in non real terms. They also noted that it could meet all of Tanzania's projected power needs at least until 2010. Yes, indeed, until next year.

"Unfortunately", laments Kassum, "we were unable to obtain financing for the project." "Instead", he further laments, "the Mtera Dam was built for half the cost of Stiegler's Gorge project but supplied only 10 percent of the power that the other project would have made available."

His ‘in hindsight lamentations' doesn't end there. Tanesco, he laments nostalgically, "spent almost the same amount that the Stiegler's Gorge project would have cost on constructing many small power-generation plants that used fuel to produce electricity." So, after all, we didn't start thinking small now.

"Later", Kassum winds up his regrets, "Mwalimu Nyerere told me it had been a mistake not to go ahead with the Stiegler's Gorge project. Had the money spent on those power stations be used on the Stiegler's Gorge project, electricity could have been supplied through cables to the whole country and we would not have the frequent power shortages that continue to plague Tanzania today."

Full of hope, Kassum sums up by saying the "good news is that the current Government has announced its intention to revive the Stiegler's Gorge project". That was 2007. Today, two years later, in 2009, the scanty information we can gather from the meeting between Dr. Idris Rashidi and Hon. Zitto Kabwe's teams is that Stiegler's Gorge project among other projects have been delayed due to lack of funds etc.

It is the same old story. ‘We are poor'. ‘Our government doesn't have the money.' In such a context one can have the audacity to even think of Dowans' 100 MW a year after the Richmondgate. All this implies that there is an urgent need to stop majoring in the minor. Let us now deal with what we know.

If we know so much about Richmond and its alleged twin Dowans then we would answer the rhetorical question that was posed by the then Prime Minister during his forced resignation because of all this electricity saga: ‘Put it on the table who is Richmond?' Yes, put it on the table, who is Dowans?

© Chambi Chachage - The Citizen 10 March 2009

 

[Njowepo]

Am telling you Tz labda tumelogwa

 

[MchunguZI]

Pesa za kununua mitambo ya Dowans zingetoka wapi? Au palipo na ufisadi, pesa hupatikana kwa njia zote!

 

[Prodigal Son]

Am telling you Tz labda tumelogwa

Mkuu hatujalogwa,
Ni maamuzi tu na vipaumbelendicho kitu cha msingi,mbona nyerere alimshinda Idd Amin, mbona aliweza kujenga viwanda kuanzisha makampuni ya umma, Siku wanasiasa watakapoweka maslahi ya taifa mbele lazima tutafanikiwa tu

 

[Kang]

It is increasingly being realised that energy infrastructure development plays a catalytic role in socio-economic advance of every nation.

Kumbe tulikuwa hatulijui hilo? na bado kuna watu hawajalijua?

 

[Kiwalani]

Mkuu hatujalogwa,
Ni maamuzi tu na vipaumbelendicho kitu cha msingi,mbona nyerere alimshinda Idd Amin, mbona aliweza kujenga viwanda kuanzisha makampuni ya umma, Siku wanasiasa watakapoweka maslahi ya taifa mbele lazima tutafanikiwa tu

Mkuu, tatizo ni kwamba kwa trend ya siasa za bongo hiyo siku utaisubiri sana; na kamwe haitafika!

 

[Injinia]

Bayeti ya Tanzania kwa mwaka inakaribia dola bilioni 7 tu hivi!..

We can sell the country off and get the money to fix our electricity woes.

I am SO pissed (pardon my French). It would seem these are the same people who are unable to manage their own households with timely repairs, shopping before supplies run out etc, now mismanaging our beloved country

A stitch in time saves nine - I find this proverb very applicable in this TANESCO mish-mash

 

[Mkora]

Mkuu naomba ufafanuzi hivi ni Zim dollar au US dollar
Kama ni US Dollar hicho kiasi mbona kinajenga hata vinu vitatu vya Nyuklia vya MW 1000
Kama ni nya gesi formula ni $1million kwa 1 MW sasa ni MW ngapi zitazalishwa

 

[The Boss]

Mkuu naomba ufafanuzi hivi ni Zim dollar au US dollar
Kama ni US Dollar hicho kiasi mbona kinajenga hata vinu vitatu vya Nyuklia vya MW 1000
Kama ni nya gesi formula ni $1million kwa 1 MW sasa ni MW ngapi zitazalishwa

ukishangaa ya musa
utaona ya firauni.........

 

[Koba]

tatizo la kukosa umeme sio pesa wala vyanzo vya kuzalisha huo umeme,tatizo kubwa ni hizo sheria monopoly za kuipa TANESCO uwezo wote wa kununua na kuuza umeme,leo hata kama una mitambo yako ya kuzalisha huwezi kuuza umeme moja kwa moja kwa wananchi/viwandani ni lazima uwauzie TANESCO kwa bei watakayokupangia then wao ndio wauzie wananchi,tatizo lingine lipo kwenye distribution/transmission lines kwa nchi nyingi hizo lines ni investment ya serikali/municipal etc na wazalishaji wana lease tuu kupitishia umeme wao lakini ukweli serikali yetu haijaweka investment yeyote ya maana na lines ziko weak/very poor na umeme unaopotea ni mwingi sana na lines hazifiki sehemu nyingi,kuna investors wengi sana wako pembeni na pesa zao lakini wanaogopa kuingia kwenye hii unfair market....waondoe monopoly ya TANESCO na wamwage investment kwenye power lines soon utaona capital itakavyomwagika kama makampuni ya simu sasa,TANESCO ni disaster na bila taxpayer money bailout kila siku leo wasingekuwepo

 

[Mzee Mwanakijiji]

nadhani walimaanisha hela yetu ya madafu haiwezekani kuwa dola za Kimarekani.

 

[Wacha1]

Nchi imepewa wakimbizi kuiongoza unafikiri watafanya nini kama sio kupora kila kitu. Hata kile kidogo watawanyang'anya na kukifanya cha kwao.

 

[Wacha1]

nadhani walimaanisha hela yetu ya madafu haiwezekani kuwa dola za Kimarekani.

Viongozi wa Tanzania hata siku moja hawako straigh ni ulaghai tu na majungu kwenye vijiwe vya kahama na kwenye misiba.

 

[Koba]

EGG-energy brings power to Tanzania with battery subscription service
​

EGG-energy identified the need for the idea by looking at some statistics: Although 80% of the population of Tanzania lives within 5 kilometers of a transmission line, only 10% has access to electricity. In numbers, the company's market consists of 30 million Tanzanians who currently rely on kerosene lamps and AA batteries, yet live within walking or busing distance of the grid.

To solve this "last mile" problem without building additional power lines to every home, EEG-energy's plan is to have the people come to the power. A customer pays $27 for a one-year subscription, and 40 cents when swapping a used lead-acid battery for a charged one. Upon subscription, the company wires the customer's home for lights, cell phones, and radios, and provides the first fully charged battery.

EGG-energy's 12V batteries are about the size of a brick, and would not add too much of a burden for most people, who regularly carry groceries along the same routes. Battery distribution centers would be located in high-trafficked areas, such as along local bus routes or near grocery stores, so that people could stop by on their way to or from work.


One of the benefits that EGG-energy is advertising is the potential financial savings. The company explains that the average target customer spends about $5 per month on kerosene and $3 per month on disposable batteries, for a total of $96 per year. Using EGG-energy's service, with eight battery swaps per month, the annual cost would be about $65, representing a $30 savings.

Besides financial advantages, using rechargeable batteries is cleaner and safer than lighting kerosene lamps, helping to reduce carbon emissions..

So far, EGG-energy has set up one distribution center in rural Tanzania last November, and has signed up its first 60 customers. The company hopes to expand much more in 2010, especially in more urban environments. It currently faces several challenges, such as working with locals to promote the service and to franchise the distribution centers, as well as securing funding.