Public involvement is necessary in order to trigger private investments in the energy sector

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.