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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.
55 Document 3:12 2013–2014 Report
very little power since it was built. The Ministry of Foreign Afairs stated that the plant was in operation during the annual meeting in 2014.
34
In Tanzania, the embassy supported the construction of the Kihansi hydropower plant and upgrading of the
country’s hydroelectric plants. The projects in Tanzania are described in more detail below.
The Ministry of Foreign Affairs supports the reconstruction of Mount Coffee hydropower plant in Liberia, which largely destroyed during the first civil war in the early 1990s. The power plant is scheduled recom-
mence operation in 2015.
Photo: Anders TørklepNorplan
In two of the core countries, Ethiopia and Mozambique, the Ministry has not provided support for new national production of renewable energy or upgrading of existing
power plants.
A review of the project descriptions in Norad’s aid statistics shows that in the period after 2005, less direct support has been given for the development of new power
plants in the core countries than in previous years. In recent years, the embassies have facilitated production through support for feasibility studies and facilitating private
investment.
Norwegian aid facilitates development projects through support for feasibility studies. Feasibility studies are conducted to assess whether a planned investment can be
realised, and they include an analysis of the market, as well as factors related to technology, investment and the environment.
35
In 2000–2013, approximately NOK 190 million was spent on feasibility studies for potential power generation.
36
As of March 2014 two power plants are under development where Norwegian- supported feasibility studies were previously carried out: Isimba in Uganda and Upper
Tama Koshi in Nepal. The power plants have a planned total production capacity of 675 MW. Norconsult currently has a contract for construction management of Upper
Tama Koshi together with the German company Lahmeyer.
A majority of the feasibility studies carried out in 2000–2013 have yet to result in the development of power plants. These include feasibility studies for four large hydro-
power projects in Ethiopia, small and medium-sized hydropower plants in Nepal and mini-hydropower plants in Tanzania. Many of the development projects for which
feasibility studies have been carried out are still part of the various countries’ develop- ment plans. The feasibility studies were, however, carried out several years ago. In
Uganda, Norfund and TrønderEnergi have done feasibility studies of two hydropower plants, but according to Norfund, neither of these is currently under development.
34 The embassies’ response to the list of questions and Norad’s Norwegian Aid Statistics database. 35 Norad.no: Funding for feasibility studies. Retrieval date 18 February 2014.
36 This calculation is based on project descriptions in Norad’s Norwegian Aid Statistics database.
