RIFT VALLEY ENERGY REGIONAL MEETING SUSTAINABLE ENERGY. Dar es Salaam TANZANIA. 5th December 2016 Michael Gratwicke AFRICA

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1 RIFT VALLEY ENERGY REGIONAL MEETING SUSTAINABLE ENERGY Dar es Salaam TANZANIA 5th December 2016 Michael Gratwicke DEVELOPING RESOURCES IN

2 Who is Rift Valley Corporation? PAGE 2

3 Who is Rift Valley Energy? Mwenga Hydro - 4 MW Hydro (Tanzania) 0.5 MW Combined Heat and Power Plant (Zimbabwe) PAGE 3

4 Mwenga Hydro Associated Rural Distribution Network (Tanzania) Currently approx 2,000 customers connected All customers are pre paid 260 of these are commercial or SME users Commercial customers pay a premium (T1) rate, with balance being rural households paying a lifeline (D1) tariff All schools, clinics, government offices, and hospitals connected PAGE 4

5 Mwenga Hydro Associated Rural Distribution Network and Expansions 38 transformers currently installed across 17 villages 57 transformers in 32 villages planned by mid km of power lines currently constructed 360 km of power lines planned by mid 2017 Estimated population of license area is 65,000 % Split of kwhr Sales D1 Kwh T1 Kwh TANESCO Kwh PAGE 5

6 Active RVE Project Pipeline that Currently Under Development RVE project locations New Hydro Projects Luponde Hydro 2.9 MW Hydro project, complete with associated rural distribution network that will supply 800 new customers in the Njombe District Dar es Salaam Suma Hydro 1 MW Hydro project with a small associated rural distribution network that will supply approximately 100 new customers in the Rungwe District Mwenga Wind Itona Tea factory Mwenga Power House Suma Luponde Tea factory Luponde Wind Project (hybrid with hydro) Ndolela 4.5 MW wind park planned in the Mufindi District to boost dry season generation capacity within the Mwenga rural distribution network, so as to better manage anticipated future seasonal dry season generation shortfalls within own network Hydro Wind Project currently planned to be built out in two distinct phases to better match the capacity of our own rural network. First phase currently planned at 2.5 MW Biomass Tanzania Mozambique

7 The Mwenga Development Impact Household Income Un-electrified Areas Electrified Areas (3-4 Years) Approx 20% of electrified households interviewed were actively involved with a form of services industry, compared to 4% in un-electrified areas. Approx 10% of electrified households interviewed were involved with agri processsing, compared to 1% in un electrified areas. The electrified areas typically have a much broader diversity of occupations (30% versus 10%)

8 The Mwenga Development Impact Household expenditure Un-electrified Areas Electrified Areas (3-4 Years on) Only 2% of the average household expenditure is made on electricity when connected The poorer households who cannot afford the connection fee (and the associated wiring of the house, and the related appliances) typically pay significantly more for their energy needs each month using traditional energy sources.

9 The Mwenga Development Impact Productive Use of Electricity Commercial customers typically use many times more electricity that domestic customers, and are the drivers of economic growth within the surrounding communities. We have recently begun a productive use of electricity exercise in conjunction with an NGO partner to further stimulate growth in this sector Energy literacy is a significant barrier that needs a very structured marketing engagement process to overcome

10 The Mwenga Development Impact Productive Use of Electricity

11 The Mwenga Development Impact Productive Use of Electricity