Development assistance to clean energy must also reach the poorest consumers

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.