The workshop in Arusha explored the East African/Tanzanian environment for village energy, local case studies, challenges and opportunities, with a view to formulating policy recommendations for policymakers, funders, NGOs and other stakeholders the region. An important part of the workshop, and indeed the whole Smart Villages initiative work programme, was to gather evidence from existing projects that have provided or facilitated sustainable off-grid energy solutions in the developing world.The workshop gathered more than 50 experts, including policymakers, NGOs, off-grid energy entrepreneurs and others to look for solutions to providing energy to villages off the grid.

1. Introduction to SNV Tanzania
programs in Renewable Energy
June 2014
Market-Based Solutions for Scaling
Access to Energy in Tanzania

2. Who we are
• SNV is a Netherlands based non-profit, international development
organisation, with >40 years of on the ground experience.
• Local presence: >2,000 professionals in 36 developing countries in
Africa, Asia and Latin America.
• Capacity development services to local public and private organisations
increasing access to basic services, income and employment.
Connection
“leveraging critical mass”
Scalability
“seeking a systems change”
Effectiveness
“empowering local actors”
Market-Based Solutions to Eliminate Poverty

3. Where we are

4. 4
What we do

5. Approaches interlinked with technology
Public Private Sector Partnership
Multi-stakeholder approach
Capacity Building and Investment
Advisory Services
Market Based Solutions / Value Chain
Development / Inclusive Business
Governance and Accountability /
Gender and Social Inclusion
Quality Assurance: Management for
Results
Facilitation of sustainable
distribution chains for RE
products and services for
households and SMEs in
underserved areas:
Focus on:
 cooking and lighting
needs for households;
 focus on productive use
needs for SMEs.

6. SNV and RE market development projects in Tanzania
• Biogas Program:
 Tanzania Domestic Biogas Programme: 2009-2017
 Solid State Digester promotion: 2011-2013
 PPP Bioslurry application in coffee sector: 2014-2017
 Milk chilling innovation project: 2014-2015
• Improved Cooking Solutions (ICS):
 Tanzania ICS program (EnDev): 2013-2015
 ICS Taskforce: 2012-2014
• Pico-PV Solar:
 Results Basing Financing (EnDev): 2013-2017
 Integrated RE Services: 2014-2015
• Cross-cutting:
 Opportunities for Youth Employment (OYE): 2013-2018

7. EnDev: Results Based Financing for Pico-Solar
Market Development in the Lake Zone

8. Goal
• The 4 year RBF aims to establish a temporary financial
product within mainstream banking that is accessible to
pico-solar import-suppliers actively engaged in distribution
chain development.
• RBF incentives valued at €1 million is hosted by a Financial
Institution and disseminated in 2 equal instalments as:
i. Product bonus to retailers
ii. Capital bonus to import-suppliers.
EnDev: Results Based Financing for Pico-Solar
Market Development in the Lake Zone

9. • Increasing number of reliable solar
suppliers entering the market
• Expansion of the industry is dependent
on the ability to consistently place large
import orders
• Lack of reliable retail chain tapping the
deeper portions of the rural off-grid
consumer market
• Limited means to achieve economies
of scale without incurring high costs
and/or monopoly of the supply chain
Suppliers
• Unreliable sources for quality solar
technology options capable of meeting
diverse consumer energy needs and
incomes
• Small working capital paired with poor
pricing practices embed a high margin
/low turnover culture
• Uniform, expensive and low quality
solar products become the market
norm
• Limited entry of new players in agri-
business with linkages to deeper rural
markets
Retailers
• 35% of all consumers indicate that
they prefer solar based energy
technologies. This number climbs to as
high as 60% in rural communities.
• Avg. energy expenses TZS 40,000
monthly
•More than 45% of energy expense
dedicated to kerosene, charging,
batteries and candles – all of which can
be easily satisfied with pico-solar.
•Only 3.5% of consumers indicate
ownership of solar products!
Consumers
EnDev: RBF Pico-Solar

10. Suppliers Retailers Consumers
+
+
EnDev: RBF Pico-Solar

11. Targeted Results
• 182,000 persons in 115,000 rural households will have access to
clean solar energy
• 22.8 million Litres of kerosene (with an est. value of €22.8
million) in household fuel savings resulting in the avoidance of
57,000 tCO2eq emissions
• 90 new and/or improved import-supply & retail energy
enterprise employments
• €3.1 million in private sector investments (NPV) relative to
€1.14 million in RBF program costs (NPV)
EnDev: RBF Pico-Solar

12. ASANTE SANA
Martijn Veen
mveen@snvworld.org
Josh Sebastian
jsebastian@snvworld.org
THANK YOU
Sector Leader / Senior Advisor Renewable Energy, Arusha
Renewable Energy Advisor, EnDev Programme Manager, Mwanza
SNV Netherlands Development Organisation
Chole Road Plot 1124
P.O. Box 3941
Dar es Salaam, Tanzania
Tel +255-(0)22260340
www.snvworld.org