BARRIERS AND OPPORTUNITIES TO TECHNOLOGY TRANSFER

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BARRIERS AND OPPORTUNITIES TO TECHNOLOGY TRANSFER
A CASE OF BARRIERS TO SOLAR PV TECHNOLOGY
TRANSFER IN MWANZA, TANZANIA Workshop on
enabling environments for technology transfer,
9-10 April, 2003, Ghent, Belgium

• K.F. MANYIKA,
• DIVISION OF ENVIRONMENT, VICE PRESIDENTS OFFICE,
• P.O. Box 5380
• DAR ES SALAAM
• TANZANIA
• Emails Freddy_Manyika_at_yahoo.com
• kmanyika_at_vpdoe.go.tz

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Organization of the presentation

• 1. Introduction
• 2. Identification of barriers
• 3. Types of Identified Barriers
• 3. Proposed Means of removing barriers
• 4. Conclusion/recommendation

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INTRODUCTION

• Tanzania has a population of about 34.56 millions
• Less than 10 of the population has access to
  grid electricity services.
• About 75 of the population live in rural areas
  with only 1 having access to electricity
  services (i.e.99 of the population in rural
  areas has no access to electricity)

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INTRODUCTION (Contd..)

• Grid electrification in TZ is undertaken by the
  Ministry of Energy and Minerals through TANESCO.
  Tanesco is under restructuring towards
  privatization in 2004
• Privatization of TANESCO might further slow down
  the rural electrification plans

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INTRODUCTION (Contd..)

• Most rural people use kerosene lamps for lighting
• Kerosene use in the rural areas ranges from
  60-120 litres per household/ year
• Substitution of kerosene use with electricity
  would reduce between 130 to 267 kg of CO2 per
  solar home system per year

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INTRODUCTION (Contd..)

• Solar PV technology is a financially and
  economically viable option for off-grid
  electrification in Tanzania
• Mwanza region has an average solar regime of
  about 5.5 kWh/m2/day
• Introduction of solar PV systems in Mwanza will
  eliminate about 2.5 million litres of kerosene
  used annually

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INTRODUCTION (Contd..)

• Solar PV installation rate is very low (Only
  0.5MWp has been installed in Tanzania, out of 40
  MWp solar installed in developing countries).
• There are practical barriers to effective
  deployment and diffusion of Solar PV Technologies
  in Tanzania

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IDENTIFICATION OF BARRIERS

• Different initiatives (Government /donor ) has
  been undertaken to promote use of solar PV
  technology in Tanzania.
• In Feb.2001, a PDF-B project on Solar PV Market
  Transformation in Tanzania was approved by GEF
• The objectives of the project were-
• review the status of the rural market for PV
  technology

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IDENTIFICATION OF BARRIERS (contd..)

• Identify barriers so as to boost PV market,
  especially in rural communities located off-grid
• A survey was undertaken through PRA to identify
  the issues that pose barriers to PV solar
  penetration in Mwanza, Tanzania.

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IDENTIFIED BARRIERS
Barrier Degree of importance
Limited awareness of, and experience with PV technology and 12 VDC appliances. Energy is a low priority area among users Major barrier
Inadequate business knowledge and capacity for distribution Major barrier
Limited technical knowledge of proper sizing, installation, operation and maintenance Major barrier
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IDENTIFIED BARRIERS (contd..)-
High cost of solar systems, initial capital investment and operation and maintenance Major barrier
Low purchasing power of the rural people Major barrier
Lack of established dealer network Secondary barrier
Lack of solar PV standards and poor/inappropriate installation Secondary barrier
Inadequate Policy implementation Secondary barrier
Difficult access to finance for suppliers(impoters , dealers, etc.) Secondary barrier
Difficult access to finance for end users Secondary barrier
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Proposed Means of removing barriers

• Increase understanding of solar PV technology to
  the large community (via TV/radio programs,
  personal networks, performing arts,
  demonstrations and exhibitions)
• Link Solar PV distribution network with other
  existing distribution networks, e.g. Petrol
  station, rural MFI etc

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Proposed Means of removing barriers(contd..)

• Build business knowledge and capacity for
  Distribution of solar PV systems (training,
  promotion, trade fair, etc.)
• Reduce tax (e.g. VAT) and import duty
• Stimulate local manufacturing of components and
  assembling

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Proposed Means of removing barriers (contd..)

• Link installation of PV systems with poverty
  alleviation projects
• Subsidize promotion of solar technology by
  linking it with the social sectors

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Proposed Means of removing barriers (contd..)

• Encourage financiers to advertise and disseminate
  information on opportunities of Solar PV
  financing so as to raise awareness of existing
  financing opportunities
• Develop policy implementation strategies

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Proposed Means of removing barriers (contd..)

• Formulate/revise policies to support solar PV
• Enact appropriate legislation on solar PV systems
• Develop and enforce standards on solar PV systems

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CONCLUSION/RECOMMENDATIONS

• GOVERNMENT SUPPORT IS A KEY COMPONENT TOWARDS
  CREATION OF ENABLING ENVIRONMENTS FOR ANY
  SUCCESSFUL TECHNOLOGY TRANSFER
• TECHNOLOGY TRANSFER IN DEVELOPING COUNTRIES NEEDS
  SPECIAL FINACIAL SUPPORT

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THE END

• -THANK YOU-