Systems change: Igniting markets for...
SNV is the implementing agency for the Energising Development (EnDev) programme in Tanzania. The programme has been under the implementation of SNV since 2013 with demonstrated growth in results achievements in both cooking and off-grid solar energy.
The EnDev III Tanzania programme for the 2019-2022 period focuses on two key components: the development of markets and sustainable supply for improved cook stoves (ICS) as well as for the productive use of renewable energy - a results-based financing fund to accelerate the market for renewable energy productive use systems in Tanzania.
The EnDev III Cooking component works to build upon existing local Improved Cookstove (ICS) supply chains to initiate the production, distribution and sales of clean and marketable ICS options that meet the need of rural households. The project works closely with existing stove entrepreneurs to realise improved performance, quality and marketability of cook stove options. Through regular and verifiable sales monitoring undertaken by the program, emerging ‘cook stove champions’ are identified and availed access to advanced and individualised products and services in business development, marketing and production scaling.
While leveraging on the success of the preceding EnDev Tanzania Improved Cookstoves (TICS project), EnDev III Cooking engages in several new workstreams including Behaviour Change Communication (BCC), Small Grants, an Enabling Environment partnership with the Tanzania Renewable Energy Association (TAREA) and expansion into six additional regions of the country to take a holistic approach to the development of the market for clean cooking at a national level.
RBF for Productive Use of Energy Component
To scale the off-grid renewable energy domestic market SNV builds on the successful model applied by EnDev Tanzania in the UK Aid -funded solar RBF facility to enable greater access to systems that support Productive Use of Energy (PUE). A two-stage RBF incentive scheme combined with Technical Assistance (TA) will be implemented supporting sustainable PUE acceleration within Tier 1-4 electrification product segments of (i) Solar home systems powering income generating appliances; (ii) Specialized energy systems with embedded PU technology, and; (iii) Mini-grids with PU applications.
The RBF for productive use will build on the small and tentative shifts towards productive use in retail, agriculture and fishing, by incentivizing private sector suppliers to diversify their offering and incorporate productive use applications into their sales and development strategies. Combining a two-tier financial incentive (one released upon installation based on the electricity produced by the energy system and another, upon verification that the energy system is tied to a productive use application which is in use and bringing in revenue for the user) with TA will enable us to steer successful productivity of technologies entering the market – better ensuring market development and economic growth.
The project will coordinate with SNV Agriculture and other Endev programmes, such as CLASP, to increase market supply of quality PUE applications. We aim to increase productivity enabling rural, off-grid users to develop their businesses and increase income by delivering the RBF in partnership with tailored TA to ensure increased PUE access does indeed generate economic development. TA will also be results-based and supplied on the basis of performance of the companies as they reach certain sales thresholds. An RBF Fund of 1,000,000 Euro is anticipated to be comprised of 800,000 Euro in monetary incentives for PUE system deployment, 100,000 Euro in Technical Assistance in kind, and a 100,000 Euro Women’s Employment Stimulus Fund.
Build upon existing local Improved Cookstove (ICS) supply chains
Develop the market for clean cooking at a national level
Enable greater access to systems that support Productive Use of Energy (PUE)