**3. Legal framework and policies**

Tanzania power sector has undergone through different turbulent periods, changes and reforms since the country attained its independence in 1961. Most of the changes and reforms have sent positive signals to those who are interested in developing or starting electricity project in the country. The changes and reforms include laying down a National Energy policy (NEP), Electricity Industry Policy and The electricity act of 2008, and guidelines for sustainable liquid biofuel development. Some of the legal framework and policies are elaborated in the following section.

#### **3.1 National energy policy (NEP) -2003**

The first national energy policy (NEP) for the Country was formulated in 1992. Since then the energy sector has undergone a number of changes, necessitating adjustments to the initial policy. These changes include change in the way the role of the government from service provider to service facilitator, liberalization of the market and encouragement of private sector investment. With these changes, the energy policy of 1992 was replaced in 2003.

The objective of the 2003 NEP is to ensure availability of reliable and affordable energy supply and use in a rational and sustainable manner in order to support national development goals. The National Energy Policy of 2003 aims to establish energy production, procurement, transmission, distribution and end-user systems in an efficient, environmentally sound, sustainable and gender-sensitized manner.

Key objectives of the 2003 NEP regarding to Renewable Technologies (RT) and services include:


The policy encourages public and private partnerships to invest in the provision of energy services. It also seeks to promote private initiatives at all levels and stresses the need to make local and foreign investors aware of the potential of the Tanzanian energy sector. To implement the policy several laws have been enacted, among them are:
