FOSSIL FUELS AND

RENEWABLE ENERGY THE

ZANZIBAR CASE STUDY
ABOUD S. JUMBE,
P O L I C Y P L A N N I N G & R E S E A R C H U N I T,
D E PA R T M E N T O F E N V I R O N M E N T,
THE FIRST VICE PRESIDENT S OFFICE,
GOVERNMENT OF ZANZIBAR,
T H E U N I T E D R E P U B L I C O F TA N Z A N I A
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The United Republic of Tan-Zan-ia

The Islands of Zanzibar

(Unguja and Pemba)

General Information
Population: 1.3. Million People
Area: 2,654 Square Kilometers of Land
Capital: Zanzibar Town
Heritage Site: Stone Town
Official Language: Swahili; English
GDP (US$) in 2013: 893.4 Million

GDP per capita (USS) in 2013: 667

Economy: Tourism, Agriculture, Fisheries
Total Debt: by 2010: US$ 100 Million.
Unemployment: 17.1% (Age:15-35)
People living BPL: 44%
Inflation Rate (%) in the past 5 years:

8.9(2009), 6.1(2010),
9.4(2012), 5.0(2013)

14.7(2011),

Growth Rate (%) in the past 5 years

6.1(2009),
6.4(2010),
6.6(2011),
7.1(2012), 7.4(2013).
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ENERGY SECTOR GOVERNANCE STRUCTURE IN

ZANZIBAR
MINISTRY OF LANDS, HOUSING, WATER AND ENERGY

DEPARTMENT OF ENERGY
AND MINERALS (DoEM)

ZANZIBAR UTILITIES
REGULATORY AUTHORITY
(ZURA)

DEVELOPMENT UNIT FOR

RENEWABLE ENERGY;
ENERGY MARKETING;
PETROLIUM EXPLORATION

ZANZIBAR ELECTRICITY
CORPORATION (ZECO)

PETROLEUM COMPANIES

PRIVATE SECTORS AND

NGOs ( ENERGY
DEVELOPMENT ON
RE/EE/DR)

ENERGY SUBSIDIZATION AND PRICE CONTROL

THE ZANZIBAR ENERGY POLICY
1. To subsidize for stimulating investments in and
production of renewable energy sources,
2. To facilitate access to modern energy products and
services,
3. To enable the poor to access affordable energy
technology
4. To control energy prices
5. To apply instruments for price control.
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ENERGY BALANCE IN ZANZIBAR: SOURCES

AND SECTORS - BIOMASS

OVERALL GHG EMISSIONS IN ZANZIBAR

ACTUAL CALCULATED EMISSIONS

PROJECTED GHG EMISSIONS 2010 - 2030

ENERGY SECTOR - EMISSIONS INVENTORY

AND PROJECTIONS
GHG EMISSIONS FROM THE ENERGY SECTOR
IN ZANZIBAR

BASELINE ENERGY PROJECTIONS FOR

DOMESTIC SECTOR IN ZANZIBAR 2007- 2030

FORESTRY AND TRANSPORT SECTORS ARE THE TWO KEY

FORCES INFLUENCING THE ENERGY SECTOR IN
ZANZIBAR
FORESTS ARE DISAPPEARING THE THE CURRENT
REDD PROJECT INTENDS TO CONSERVE MORE THAN
60,000 HA OF COMMUNITY FORESTS

EXPANSION OF TOURISM SECTOR IN ZANZIBAR HAS

CAUSED AN UNCONTROLLED IMPORT OF VEHICLES
ON THE ROAD PUSHING COST OF FUELS UP.

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Key Energy Challenges

Biomass energy accounts for over 90% of final energy consumed. This has caused serious
impacts on Forest Ecosystems.
Power demand is imposing pressure on existing installed capacity.

Zanzibar does not generate own power since 1979. Pemba was connected in 2010. Two
Undersea Cables from mainland Tanzania (to Unguja and Pemba) supported by USA and
Norway. Japan is supporting power distribution systems.
Growing demand for fossil fuels from Transport Sector and Tourism (Resort Generators and
other Services.
So far there is no installed Renewable Energy system (Only out-of-grid small scale and NGO
initiatives) e.g. CFI Canada, Barefoot College India; ZASEA Germany.
ZECO suffers from 100% heavy reliance on mainland, subsidies, power losses, and lack of
financial and planning architecture towards renewable energy targets.
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ELECTRICITY CONSUMPTION AND

DISTRIBUTION IN ZANZIBAR
MONTHLY ELECTRICITY CONSUMPTION

DISTRIBUTION OF SALES BY SECTORS

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HOUSEHOLD ENERGY USE SURVEY IN

ZANZIBAR 2010/2011 Biomass Challenge
Rural

Source of Fuel

Urban

Total

2004/05

2009/10

2004/05

2009/10

2004/05

2009/10

0.4

0.4

2.8

1.5

1.3

0.9

0.0

0.1

0.0

0.3

0.0

0.2

0.0

0.2

0.0

0.0

0.0

0.1

Paraffin

1.5

0.8

2.4

1.5

Charcoal

5.0

7.7

49.1

52.4

21.2

26.2

Firewood

92.8

90.7

44.3

42.7

75.0

70.8

Others

0.1

0.1

0.4

0.7

0.2

0.3

Total

100.0

100.0

100.0

100.0

100.0

100.0

120,626

136,059

70,053

96,452

190,679

232,511

Electricity
Gas
Bio gas

Total Households

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ENERGY COST IN COOKING DILEMMA ON COST

PREFERENCES VS EFFICIENCY OF COOK STOVES

Energy source

Cost per
Unit of measure
unit (US$)

Energy value
per unit (MJ)

Cost per MJ
(US$)

Cost of energy
Typical stove
delivered to the pot
efficiency
(US$/MJ)

Firewood

kg

0.07

15.5

0.00

16%

0.02

Charcoal

kg

0.34

29

0.01

22%

0.05

Electricity

kWh

0.12

3.6

0.03

55%

0.06

Kerosene

litre

1.1

34

0.03

40%

0.08

kg

2.4

45

0.05

50%

0.10

LPG

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FUTURE POWER CHALLENGES FOR ZANZIBAR WHY

CURRENT BASELINE SCENARIOS PROJECT ENERGY CRISIS
FOR TOURISM INDUSTRY
PROJECTED CONSUMPTION, DEMAND,
CAPACITY

POWER TARIFFS FOR ZECO AND TANESCO

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COST ON INFRASTRUCURE IN THE PAST FIVE YEARS

EXTERNAL SUPPORT FOR ENERGY EFFECIENCY AND
RENEWABLES
Government of Norway Undersea Cable from mainland Tanzania to Pemba Island
Total Cost:

US$ 50 Million

Contribution: US$ 16.9 Million was contributed from the Zanzibar and the Union Governments
Capacity: 25 MW for the next 20 25 years under current baseline scenario.
Length of the Cable: 78 Kms - at some point the greatest undersea depth was over 800 meters.
Government of Zanzibar: - Purchase of the Backup Generators with total capacity of 25MW.
Cost: Running Cost during the power crisis in 2010 went up to over US$ 600,000 under two months. The backup
generators were shut down due to inability of ZECO to afford the running costs.
The United States of America: Millennium Challenge support: Undersea Cable replacement. Installation of a new
100 MW Cable from Dar es Salaam to Zanzibar Island. (Replacing the old 45 MW)
Cost: US$ 55 Million Approx US$ 2.4 Million was contributed by the Zanzibar Government
The cable can now withstand the current peak demand of 58.3 MW.
Last Week, the European Union agreed to support Non State Actors on Renewable Energy US$ 8.3 Million.

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ZECO TARIFFS FOR CONSUMERS JUNE 2012 AND

NOVEMBER 2013 : UNLOADING THE TARIFF BURDEN ON
DOMESTIC USERS ECOSYSTEM CRISIS TO DEEPEN
TARIFF
CATEGORY

ENERGY
CHARGE (Unit)
- TSH/kwH

US$
CENTS/kWh

Z0-Residential

<50

66

4.1

>50

168

10.5

Z1-General
Service

<2000

161

10.1

>2000

218

13.6

Z2-Small
Industries

<5000

172

10.8

>5000

213

13.3

Z3- Large
Industries

<10,000

169

10.6

>10,000

141

8.8

Z4- Street Lights

All Units

141

8.8

TARIFF
CATEGORY

ENERGY
CHARGE (Unit)
- TSH/kwH

US$
CENTS/kWh

Z0-Residential

<50

66

4.1

>50

400

25.0

138%

Z1-General
Service

<2000

222

13.9

38%

>2000

800

50.0

267%

Z2-Small
Industries

<5000

172

10.8

>5000

213

13.3

Z3- Large
Industries

<10,000

169

10.6

>10,000

141

8.8

Z4- Street Lights

All Units

222

13.9

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TARIFFS AND DEBT ISSUES BETWEEN

ZECO AND TANESCO
TANESCO categorizes ZECO under the so-called Customers connected at High Voltage. TANESCO
supplies up to 60 MW of electricity to Zanzibar.
The Existing Tariffs are as follows:
- Service Charge = TSH 14,233 per Month (approx: US$ 8.78)
- Energy Charge = TSH 106 per kWh (approx.: US$ Cents 6)
- Maximum Demand Charge = TSH 1,079 per kVA per Month. (approx. US$ Cents 66)

TANESCO wants the Energy Charge raised to TSH 159/kWh by 2015 (approx.: US$ Cents 9)
TANESCO wants Maximum Demand Charge raised to TSH 16,550/kVA/month by 2015. (US$ 10.2)
TANESCO says ZECO owes it TSH 70 Billion. (US$ 43.2 Million). Threatens to cut off if not paid!

ZECO says they owe TANESCO TSH 44 Billion (US$ 27 Million) . That the Union Government should
contribute TSH 18 Billion (US$ 11 Million) under P.A.Y.E System.
On the average, ZECO is supposed to pay TSH 3.4 Billion (US$ 2.1 Million) to TANESCO on a monthly
basis.
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ALTERNATIVE FUELS AND OPTIONS IN

ZANZIBAR
LPG
- Started under REDD Pilot Project funded by Norway and implemented by Care International with Department
of Forestry and Non Renewable Natural Resources in Zanzibar.
- Began with import of 10 tons a month in 2010 to 100 Tons a month by the end of 2011
- LPG still provides 0.5% of the cooking energy in Zanzibar
- Under current baseline scenario, an estimated 200,000 tons of LPG costing over US$ 200 Million would be
required annually to REPLACE all firewood and charcoal
Wind Generation: Study done on south-east. Potential for 15 MW. Wind Speeds: 7.7 m/s (30 meters above the
surface terrain). The use of 600 kW Turbines. A Farm of 25 Turbines. Production cost of 11 US$ cents/kWh.
Home Solar PV Systems: Case Study - Community Forest International Remote Islets and location in Pemba
(Total PV Array: 3290 W): Total Energy Capacity: 32.8 kWh; Total Inverter Power: 10.8 kWh.
Biogas: Danish Support (DANTAN) along with Dutch SNV -Tanzania Domestic Biogas Program. Small Scale.
Improved Cooking Stoves (ICS): various small scale programs. Various NGOs.
Briquettes: Under trials. Small Scale. Various NGOs

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IN CONCLUSION
Zanzibar needs heavy financing and major revamp of its energy policy and planning
framework to match that which was proposed under the goals of Rio +20
The Energy Reforms should come in the context of an array of policy synergies including
Sustainable livelihoods, Fisheries, Agriculture, Forestry, Transportation and Tourism Sectors.
Need to develop targets in RE Goals. (Explore more of the marine potential e.g. the Wave
Energy) Zanzibar carried out Wave Energy feasibility study along with the Israeli Energy Firm
in 2010.

Enhance our regional commitments along with the Indian Ocean Commission programs, the
ISLANDS Project for the SIDS of the regions; the WIOCC, and the UN Sustainable
Development initiatives in the region.
UNOSD could directly help by supplying its long technical expertise by assisting the Energy
Ministry in Zanzibar on the targets along the lines of official SIDS. Low Carbon Development
is inevitable.
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Acknowledgement
1.

A large proportion of this work is based on the Report: Economic Impact of Climate Change in Zanzibar. The Climate
Study was led by the Global Climate Adaptation Partnership (GCAP), working with local partners (State University of
Zanzibar -SUZA, and Institute of Marine Sciences - IMS), with funding from UK (DFID) Government. It has been
commissioned under DEW Point, the DFID Resource Centre for Environment, Water and Sanitation which is managed by a
consortium of companies led by Harewelle International Limited. Authors: Paul Watkiss, Steve Pye, Gerard Hendriksen,
Andrew Maclean and Muriel Bonjean. Global Climate Adaptation Partnership, Narriman Jiddawi, Yohanna Shaghude IMS,
Mohammed A Sheikh and Zakaria Khamis, State University of Zanzibar.

2.

Acknowledgements and sources :

Gerard Hendriksen for his extra inputs for the slides; and for sharing the work on Potential Energy Technologies and Services
in Zanzibar and Their Potential for Carbon Credit (Done under ZABACCO Research Consultancy).

Jeff Schnurr of the Community Forest International (CFI) for his inputs on the Solar Energy Projects in Pemba.

Bakari Makame of the Office of the Chief Governments Statistician for the Zanzibar Economic Survey 2013 Data.

Haji Zubeir from the Department of Transportation and Licensing, Zanzibar, for his support on Modal Transport Data.

Daily News Article dated 18th January 2014: http://www.dailynews.co.tz/index.php/local-news/27123-zanzibar-utility-firmqueries-tanesco-s-over-70bn-debt

Zanzibar Energy Policy 2009

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THANK YOU

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