Linking sustainable energy development to poverty eradication

HOW to link poverty with sustainable energy utilization is a key concept that many people have not come to fully comprehend. Now that it is known that Tanzania is endowed with significant energy resources which are hydro, biomass, natural gas, coal, wind and solar. However, so far, the most usable of all these types of energies is the biomass which accounts for the largest share of the total energy consumption for the household sector in the country, and this needs to be readdressed in more comprehensive details. A Dar es Salaam based energy resource development organization, the Tanzania Traditional; Energy Development and Environment (TaTEDO is determined to increase access to energy technologies for the people especially in rural areas.
The firm has been working out on the effective new energy technologies as a way of reducing poverty and dependence on environmentally unclean energies for 16 years now, under which it been playing a leading role in energy development issues in Tanzania. Being a Non-Governmental Organization (NGO), the firm is spearheading development of sustainable development of energy technologies and services mostly in rural areas and thus, aiming at conserving the environment in the country.
The firm’s experiences over the years has indicated a significant market potential for modern energy technologies and services being promoted in rural areas with the aim of improving the quality of life of the people by contributing to availability of modern energy services through its rural programs. Experiences have also indicated that the uncertainties faced by the technologies business developers, the required level of marketing and the risks faced by entrepreneurs are high.
Capacity of potential entrepreneurs to see and capture opportunities in the sustainable energy sector and risks involved in developing the market for modern energy technology products and services has been a prohibitive by potential entrepreneurs at the district or village level. According to the firm’s Executive Director, Mr. Estomith Sawe, in order to accomplish its major tasks, TaTEDO is currently actively applying its experiences in ten different regions in the country namely, Arusha, Coast, Dar es Salaam, Kilimanjaro, Mwanza, Rukwa, Shinyanga, Tanga, Lindi and Mtwara. The technologies earmarked for up-scaling program in these regions includes efficient wood fuels stoves, charcoal and firewood baking ovens, improved charcoal production kilns, solar PV, dryers and multi-chargers. According to him, the time-scale of the program is three years (2008-2010) and is supported by Norway ministry of Foreign Affairs (MFA), EU/HIVOS and TaTEDO The overall program is to contribute to sustainable development and poverty eradication by enhancing access to modern energy technologies and services to consumptive and productive needs in households, SMEs and social service centers.
The program target groups/beneficiaries are in three categories such as, users of the technologies of which includes households and social services centers such as schools, health centers and dispensaries.
Other beneficiary groups includes service providers comprising of entrepreneurs such as stove/oven producers, solar technicians, seedling enterprises, dealers, tree nursery vendors, charcoal producers and Micro-Financing Institutions (MFIs) Wide scale commercial market penetration of these technologies into the rural areas is usually constrained by a number of barriers including the lack of technical know how and absence of information and awareness on the potential uses of the different stakeholders.
This is also aggregated by the lack of suitable financing mechanisms for consumers as well as for the dealers and the whole supply chain involved. These barriers are also limiting the involvement or success of the rural modern energy businesses in supply and provision of the associated services.
It is estimated that, over 90 percent of bio-mass fuel which involves the use of firewood and charcoal constitute the principal source of energy for the Tanzanian population. This is derived from natural forests and woodlands whose essential end uses are heating including cooking, brewing, smoking, firing, boiling, ironing and lighting. All these chores are performed by women and men at different proportionality and yet their production and use in the country is still based on accelerated deforestation which will ultimately herald in a new vicious cycle of poverty.
The remaining 10 percent of energy consumption in the country is met through the use of other sources such as fossils fuels, grid and non-grid electricity which also serves at the households sectors, small and medium, enterprises and institutional levels in both urban and rural areas.
Statistics shows that, most of charcoal producers use traditional earth moulds kilns which have low conversion efficiency of less than 20 percent. TaTEDO’s experience in working with the local communities shows that approaches to poverty reduction should reflect diversity in social, economic and local environment of the community.
Having acknowledged this therefore, the organization shifted its focus from traditional energy technologies to conceptualizing a holistic development framework by integrating energy issues and technologies.
The overall process of sustainable development as a result which involve helps the community to identify and address their social, economic and environmental needs, is an approach being used in areas where TaTEDO is working with villagers. The involved partners and local communities have commended the understanding by all stakeholders, thus enhancing good relationship with social, technical and financing institutions.