Access to energy is a precondition for economic growth and social development

52 Document 3:12 2013–2014 Report Figure 3 Annual development assistance to clean energy in the core countries during the 2000–2013 period in NOK million 100 200 300 400 500 600 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Totalt Source: Norad’s Norwegian Aid Statistics database Figure 3 shows that development assistance to clean energy in the core countries has more than doubled following the launch of the Clean Energy for Development Initiative in 2007. The aid has been between NOK 350 and 550 million annually during the 2008–2013 period. Figure 4 shows how this aid has been distributed among diferent types of measures during the 2000–2013 period. Figure 4 Development assistance to clean energy in the core countries during the 2000–2013 period, by type of measure in NOK million 200 400 600 800 1 000 1 200 Ethiopia Liberia Mozambique Nepal Tanzania East-T imor Uganda Development of power generation from renewable energy sources, excl. Norfund’s investments Central and distribution grids Capacity development, administration and research Norfund’s investments in renewable energy The category Renewable power generation includes the sub-categories Power generation renewable sources, Hydroelectric power plants, Solar energy, Geothermal energy, Wind Power and Biomass. The category Capacity building, administration and research includes Energy policy and administrative planning, Energy education and Energy research. Source: Norad’s Norwegian Aid Statistics database Figure 4 shows that there are signiicant diferences in how much aid the core countries received during this period. While Mozambique received more than NOK 1 billion for clean energy, Ethiopia and East Timor received relatively modest amounts; less than NOK 200 million each during the 2000–2013 period. In its response to the list of questions, the embassy with responsibility for East Timor stated that the 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.