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NDF has approved a EUR 500 000 grant financing to support a comprehensive assessment of the sustainability of existing and identified hydropower schem

The Nordic Development Fund will in partnership with the World Bank (WB) and the UK Department for International Development (DFID) finance a country wide hydropower sustainability assessment in Tanzania.
The power sector in Tanzania has a huge impact on the country’s economy as power security is essential for economic growth. Hydropower comprises one of the cheapest ways to expand the grid-based electricity supply. By far the lowest levelized cost for power production is to maintain and operate the six existing hydropower plants in Tanzania in an efficient way. Indicative figures also show that the major potential hydropower sites in Tanzania have lower or equal levelized costs per energy produced compared to natural gas and coal-based plants. Hydropower is a renewable source of energy by itself but also has an essential role as it can, through storage, balance intermittent energy sources such as wind and solar. Hydropower with storage, which is a pre-requisite in Tanzania because of the seasonal rainfall, also gives ancillary benefits such as frequency control to the transmission system, flood control and guaranteed water supply for domestic users.

The failure of the large hydropower schemes in Tanzania to deliver power during a number of low rainfall years have, however, caused a strong perception that climate change has made conditions drier in these catchments and that hydropower development is risky because of climate change. There is therefore a great need to clarify if hydropower development is associated with risks because of climate change and/or poor watershed management and operation, and if such risk can be mitigated.

The Government of Tanzania has therefore requested consultancy services to conduct a hydropower sustainability assessment. The proposed study will provide information on the sustainable levels of hydropower generation taking into account all environmental and water management aspects, and provide suggestions for necessary climate change adaptation measures. A functioning and expanded grid-based power supply in Tanzania has the vast benefit of reducing emissions from fossil fuel based electricity generation, but also from forest degradation as electricity replaces charcoal and fire wood as energy source for peri-urban and rural households.

The implementation of the hydropower sustainability assessment will require use of consulting services. The World Bank procurement rules will be followed in the selection of consulting services.


Additional information: More info....
News date: 29/10/2012

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