Tanzanias 2008 Electricity Act sets out rural electrification and renewable energy deployment targets, further implemented by the 2010 Electricity Rules.
The Energy and Water Utilities regulatory Authority (EWURA), an autonomous multi-sectoral regulatory authority established in 2001 under the authority of the Ministry of Energy and Minerals, is responsible for the implementation of these provisions.
The 2010 Electricity Rules implement less time consuming and less costly procedures for the attribution and development of Small Power Projects - maximum 10 MW export capacity- in both grid connected or mini grid systems. Small Power Projects rely on renewable energy sources or waste to generate power or heat.
The Electricity Rules further modify the electricity market structure by promoting the private sectors penetration. Such Rules also enhance and scale-up the role of renewable energy in the energy mix and increase rural electricity access (which stood at 2% in 2009).
The 2010 Electricity Rules also set up a Standardized Small Power Purchase Tariffs for both grid connected and mini grid electricity generation projects. The tariffs, expected to be reviewed annually by the Working Group on Small Power Development (WGSPD), have been established as follows in 2010:
- An annual average of TZS 110.30/kWh for main grid-connected Standardized Small Power Purchase projects,
- TZS 132.36 during the dry season (August to November), and
- TZS 99.27 during the wet season (January to July).
- Regarding mini-grid systems, the proposed tariff for the year 2010 is TZS 368.89/kWh.