**3.4 Guidelines for sustainable liquid biofuels development (2009)**

Advanced technologies available today facilitate production of liquid biofuels and generation of electricity using solid by-product through cogeneration. Using current technologies, economically it is feasible to produce biofuels through the use of agriculture crops which in some cases are also food crops. In this aspect, the government of Tanzania is aware of potential benefits that could be realized through development of the biofuels industry; these include technology transfer through new bio-energy industries, employment and income generation in industry and agriculture sectors, improved energy security, foreign exchange savings via the reduction of oil import, increased foreign exchange through export of biofuels and reduced emission of pollutants and other harmful particles.

In order to create an avenue for biofuel development, the government has published guidelines for sustainable liquid biofuels development, which include:


48 Renewable Energy – Trends and Applications

Allocate resources to projects in open and transparent manner and with well defined

Contribution from international financial organizations and other development

Fees for programmes, publications, seminars, consultancy activities and other services

REA/REF have already supported various off-grid projects in small hydro power projects, biomass cogeneration projects, biomass gasification projects in Mafia and Mkonge Energy project. The supported projects are currently at various stages of implementation. The total expected capacity is 46 MW. A total of 8,400 new connections are expected. REA/REF support fiscal incentives for rural energy projects and programmes and count amongst the National aid initiatives attracting fiscal initiatives. On top of government subsidy to REF, the agency is also allowed to take up to 5% surcharge on each unit of energy generated by commercial electricity producer. REA/REF subsidies also support solar PV Systems. However, the subsidy is limited to 100Wp for domestic use and up to 300Wp for

The electricity Act of 2008 replaces the electricity ordinance Cap 131 of 1931. The act implements the National Energy Policy of 2003. The act opens up the electricity sector for generation, transmission, distribution and sales to private sector participation. It provides instruments for the regulator (EWURA) and stipulates the roles of Rural Energy Agency (REA) and Rural Energy Fund (REF) and sets the general conditions for cost effective tariffs

 Levies of up to 5% on the commercial generations of electricity from the national grid Levies of up to 5% on the generation of electricity in specified isolated systems

The act provides REF with funds from the following sources.

and least-cost electrification options in particular to rural areas.

Power Sector Master Plan (PSMP) to be updated annually.

 Standardized small power purchase agreement for 100kW to 10 MW Standardized Power Purchase Tariffs and Fair Competition Tribunal

energy would increase competitiveness of renewable energy technologies.

**3.4 Guidelines for sustainable liquid biofuels development (2009)** 

 Electricity to be generated from any primary source including renewable energy. The electricity act of 2008 has opened up windows for renewable energy promotion in particular in rural areas. It is anticipated that more research and development in renewable

Advanced technologies available today facilitate production of liquid biofuels and generation of electricity using solid by-product through cogeneration. Using current technologies, economically it is feasible to produce biofuels through the use of agriculture crops which in some cases are also food crops. In this aspect, the government of Tanzania

In addition, the act recognizes other activities such as: The preparation of rural electrification strategies Plan to promote access to electricity in rural Tanzania

Recognize Fair Competition Commission

allocation criteria.

partners.

Institutions.

**3.3 Electricity act (2008)** 

Government budgetary allocation.

provided by the agency Interests or returns on investment.


The guidelines will attract more investors to come and invest in the country. It is anticipated that in the near future, biofuels will contribute massively to the energy mix of the country. Modern energy services require the growing inclusion of renewable energy into the sustainable energy mix of the country. The legal frameworks and policies have already been enacted and are in place. The task ahead is how to implement. However, this task is not easy; it needs concerted efforts, organisation and proper planning which include identifying the leading renewable energy resources in the country. A brief summary of leading renewable energy resources is presented in section 4.
