The government has unveiled the Small Power Projects Framework, meant for use in developing private renewable energy sources particularly in rural areas.

The aim is to help the ailing state-run Tanzania Electric Supply Company (Tanesco) in electrifying rural areas.

Energy and Water Utilities Regulatory Authority (Ewura) Director of Electricity Anastas Mbawala told reporters at the unveiling ceremony in Dar es Salaam yesterday that the framework was developed by the Energy and Minerals ministry with World Bank assistance through a consultative process that involved all stakeholders.

He said the framework would benefit rural-based electricity consumers, Tanesco and private investors, particularly local entrepreneurs.

According to the Ewura official, the framework would promote the participation of private investors in the development of electricity projects of at most 10MW capacity as defined in the Electricity Act of 2008.

He said implementation of the projects would cover small hydro-power plants, industrial and agricultural waste as well as wind and co-generation.

Mbawala elaborated that the framework would involve the Standard Power Purchase Agreement (SPPA) that would be signed between a buyer and the developer and a standard tariff methodology to be applied.

``The SPPA is simplified with standard clauses which reduce negotiating time and cost before signing the agreement. The tariff will be applicable for small power projects and will be calculated annually by a working group and submitted to Ewura for approval,`` he said.

Ewura Director General Haruna Masebu explained that the framework would simplify investment procedure and clear doubts, particularly as related to the signing of new contracts.

Meanwhile, the Ewura board of directors met yesterday to discuss how to deal with oil dealers who have defied the watchdog agency`s order to cut oil prices in line with the decline in world market prices.

Last week, Ewura gave the oil companies one week to lower pump prices in consonance with trend in the world market.

Masebu said the deadline ends today but there was no sign by yesterday that the companies would meet it.

SOURCE: GUARDIAN, Nov 6, 2008