53 Document 3:12 2013–2014 Report
cooperation on clean energy had concluded because the authorities no longer priori- tise clean energy.
The igure also shows that aid to the core countries in the 2000–2013 period was dominated by support for the development of main and distribution grids. In Nepal,
a signiicant share of the aid was spent on a programme that supports small-scale power generation and clean-burning cook stoves. In Ethiopia, the funds were largely
spent on feasibility studies for potential hydropower plants. Norfund’s investments mainly cover two hydropower plants in Uganda and Nepal.
24
4.1.2 Aid to Tanzania
During the 2000–2013 period, Norwegian development assistance to clean energy in Tanzania totalled approximately NOK 750 million. About NOK 550 million was
given during the 2007–2013 period. A large share of the aid was given for the construction of a subsea interconnector, as well as the development of main and
distribution grids on Zanzibar. In 2013, the Ministry of Foreign Afairs entered into an agreement with the Government of Tanzania to provide NOK 700 million in aid over
a period of ive years for rural electriication. Nearly NOK 120 million of this aid was disbursed in 2013.
The energy sector in Tanzania has both low generation capacity and a poorly devel- oped power grid. The annual electricity consumption is about 92 kWh per citizen, less
than 0.5 per cent of the consumption per citizen in Norway.
25
According to the National Household Survey from 2012, 18 per cent of Tanzanian households are
connected to the power grid. Sixty-eight per cent of households in Dar es Salaam are connected to the grid. In other cities, the percentage is 36, while four per cent are
connected in rural areas. The power supply is frequently unstable, and is periodically rationed due to power shortages. This has led large and medium-sized businesses to
install generators to ensure their access to power. Nearly half of all Tanzanian busi- nesses own their own diesel generator.
26
Lack of access to power is cited by Tanzanian businesses as the greatest obstacle by far to engaging in business activities
see Table 1 p. 31. In 2008, the Government of Tanzania prepared an overall plan for the energy sector.
27
The plan includes forecasts of future demand for, and consumption of, power, and concrete plans for how this need will be met with development of both production and
distribution of power. The national development strategy MKUKUTA II
28
from 2010 lists a number of quantiied goals for the sector see Box 1. The strategy also lists
measures to be prioritised, with construction of new power plants, development of new renewable energy, rural electriication and expansion and strengthening of the
main grid as the four items with the highest priority. The Big Results Now initiative was launched in 2013, with energy as one of six prioritised sectors with the aim of
making Tanzania a middle income country by 2025. The primary goal is initially to double the production capacity and power deliveries from 2013 to 2015, and to
achieve 600,000 new power connections.
29
24 Norad’s Norwegian Aid Statistics database.
25 World Bank Development Indicators. Source: http:data.worldbank.orgindicatorEG.USE.ELEC.KH.PC. 26 Government of Tanzania 2012 Long term perspective Plan – Roadmap to a Middle Income Country.
27 The Republic of Tanzania Ministry of Energy and Minerals annual Power Sector Master Plan. 28 Tanzania Ministry of Finance and Economic Affairs 2010 National Strategy for Growth and Reduction of Poverty: MKUKUTA II.
29 Source: http:www.mem.go.tzPortals0EasyDNNNewsDocuments10620064_28062013-Energy_Lab_Report_on_Priority_Pro-
jects_Under_Big_Results_Now_Initiative[1].pdf.
54 Document 3:12 2013–2014 Report
Box 1 Goals for the Tanzanian energy sector
Goals for the Tanzanian energy sector in MKUKUTA II: • Increase power generation from 1064 MW in 2010 to 1722 MW in 2015
• Increase the use of new renewable energy not hydropower from 4 per cent in 2010 to 6 per cent in 2015
• Double the total length of main and distribution grids from 2010 to 2015 • Increase access to electricity in rural areas from 2 per cent in 2010 to 6 per cent in 2015, and nation-
ally from 14 per cent in 2010 to 18 per cent in 2015 • Increase access to clean alternatives to wood-burning from 10 per cent in 2010 to 20 per cent in 2015
Source: Tanzania Ministry of Finance and Economic Affairs 2010 National Strategy for Growth and Reduction of Poverty II
4.2 Norwegian aid for power generation
Planning, facilitation and direct support for building energy infrastructure is a focus area within development assistance to clean energy.
30
Norwegian aid to renewable power generation goes primarily to the development of hydropower, and only margin-
ally includes generation from other renewable energy sources such as wind and solar energy.
31
According to the Ministry of Foreign Afairs, technological developments provide far greater opportunities for utilising solar power on a major scale in 2014
than in the early 2000s. According to Norfund, there are vast hydropower resources in Sub-Saharan Africa,
but only 5 per cent of the continent’s hydropower potential has been developed.
32
Many Norwegian companies have specialised in constructing hydropower plants and have thus developed internationally recognised technical expertise in this area.
Norway is the world’s sixth largest hydropower producer, with 120 years’ experience from the sector. The Ministry of Foreign Afairs therefore considers hydropower to be
an area where Norway has a comparative advantage.
4.2.1 Results of Norwegian aid for developing and upgrading power plants
In 2000–2013, just over NOK 270 million was granted to build or upgrade power plants in the seven core countries.
33
Investments from Norfund come in addition. In Uganda, the embassy, in addition to providing support for the construction of a
50 MW oil-ired power plant, supported the development of a 40 MW turbine at the Kiira hydropower plant. According to the embassy, the plant generated 1253 GWh in
2000–2013. In Nepal, the embassy supported the upgrading of a power plant that produces up to 50 GWh annually. In Liberia, the embassy is supporting the upgrading
of the Mount Cofee hydroelectric plant, which will have a production capacity of 70–80 MW. The embassy has also supported diesel generators to boost power supply
in the capital, Monrovia.
In East Timor, support was provided for a mini-hydropower plant, but the plant has been out of operation for long periods, partly because of repeated landslides and
technical problems. According to the embassy, the plant has consequently produced
30 Ministry of Foreign Affairs and Norad 2007, Plan for the Clean Energy for Development Initiative, p. 3; Ministry of Foreign Affairs and Norad 2009 Action Plan 2009–2012, p. 6.
31 Norad’s Norwegian Aid Statistics database.
32 Norfund 2010 Report on Operations, p. 6. 33 This calculation is based on project descriptions in Norad’s Norwegian Aid Statistics database. For Norfund’s investments,
see Section 5.2.2.
