Affordable Electricity Tarrifs are a key for Private Sector Engagement in Renewable Energy Investment in Tanzania. This Policy Brief, co-developed with the Sustainable Energy Forum Tanzania (SEF), explores how to design affordable tarrifs.

Key Messages:

• Tariffs need to be cost-reflective and affordable to enable energy access for all

• Enabling cost-reflective tariffs ensure investors recovering of the real cost and attract more investment

Recommendations:

• RE resource mapping: Open-access to mapped & evaluated RE potentials allow secure planning of RE

• Feasibility studies: Access to feasibility studies allow easy, fast and low-cost planning

• Electricity subsidization: Access to subsidization for private sector enable minigrids and off-grid RE projects

• Result-based financing: Promoting and enhancing access to result-based financing unlock new RE projects

• Waving importation tax: Lowering cost and barriers of important components for RE projects , as PV panels, will

enable low-cost RE projects planning and implementing